What is a Tax-Free Savings Account?
A TFSA is a flexible investment account that can help you meet both your short-term and long-term savings goals.
- Investment income in a TFSA – whether you’re earning interest, dividends or capital gains—are not taxed, even when withdrawn. This tax-free compound growth means that your money grows more quickly inside a TFSA than in a taxable account.
- Annual contribution limit – is $5,500 as of January 1, 2017. In addition, you can carry forward unused contribution room indefinitely. The federal government will report your TFSA contribution room to you annually.
- Previous contribution limits:
- $5,500 in 2016
- $10,000 in 2015
- $5,500 in 2014 and 2013
- $5,000 in 2012 – 2009.
- Eligibility – Any Canadian resident age 18 or older with a Social Insurance Number can open a Tax-Free Savings Account.
- Income Requirements – You are not required to have earned income to contribute to a Tax-Free Savings Account
- Tax Benefits – There is no tax deduction for contributing to a TFSA. However, the returns your investments generate (interest, dividends or capital gains) are not taxable (except for any foreign tax on foreign investments).
- Withdrawals – You can withdraw money from your account at any time, (depending on what you invested in). You can re-contribute the amounts you withdrew anytime after the year of withdrawal. In addition withdrawals are tax free.
- Investment Options – You can invest in Vanguard term deposits (1-5 years), variable deposits, and mutual funds. As well as stocks and bonds through our online broker Credential Direct.
- Transfers in from other institutions and pension rollovers easily arranged
- Variable rate deposits or fixed rate terms up to 5 years available
- Automatic TFSA deposit transfers at varying frequencies at no fee
- Minimum term deposits of $500
- Competitive Rates
Click here to download the TFSA Declaration of Trust
|12 Months ||2.00%
|24 Months ||2.20%
|36 Months ||2.35%
|60 Months ||2.60%
|RRSP/RRIF/TFSA - Variable||$0 - $4,999||0.0500%
|RRSP/RRIF/TFSA - Variable ||$5,000 & over||0.7500%