Tax Free Savings
The Tax Free Savings Account (TFSA) is a savings venue that can be used for both short and long term savings. It is not designed to replace the Registered Retirement Savings Plan (RRSP), but offers flexibility for savings. As of 2012, the maximum contribution room is $20,000. A person can hold more than one TFSA, but the accounts added together must add up to $20,000 or less. Any amount over $20,000 will receive a 1% per month penalty.
A TFSA cannot be held jointly with another person. It is registered with Canada Revenue Agency to the individual.
For a short-term savings solution, we can offer an interest rate of 2.25% in a tax free savings account. There is no fee for deposits and withdrawals and no minimum balance. Additional contributions are as easy as an online transfer, a phone call or mailing a cheque.
If you would like to invest with tax free growth for long term, the tax free savings plan allows a wide variety of investment options including mutual funds from low risk to high risk. If you would like to consider other options available, please contact our office. If you have already opened a tax free savings account, but would like a higher interest rate or would like to move from a Tax Free Savings Account to a Tax Free Savings Plan, our office can prepare the transfer paperwork and process the paperwork for you.
For those savvy investors who have already maximized their tax free savings account, and are looking for a high interest savings account, contact our office to find out more of what’s available.