Tax Free Savings Account (TFSA)
TFSAs can become an excellent companion to your RRSP within your overall investment portfolio. While you may have your RRSP in place to save for your long term savings goals, a Tax Free Savings Account is the perfect compliment for short term objectives. Unlike an RRSP, which was originally designed to provide you with income after you retire, the Tax Free Savings Account is designed to help you save for a wide range of goals during every age and stage of your life; especially on purchases like a new car, home renovations, a dream vacation or just to have as an emergency back-up fund.
"I chose the TFSA over a regular savings account because it offered more potential for growth. My money earns interest tax free, plus there is the flexibility to withdraw the funds when I need them. Knowing that we have savings in place for our wedding is a BIG relief. With more and more expenses coming at us, I started to worry if we would be able to pay for the hall in the end. Having my TFSA has lifted a lot of stress off my shoulder. At my branch they take the time to understand our needs and offer solutions that work for us."
The Tax Free Savings Account (TFSA) is a savings opportunity that allows you to grow your money in a registered savings plan without having to pay tax on the interest or capital gains earned. All Canadian residents, age 18 or older, who have filed an income tax return and have a Social Insurance Number, can open a Tax Free Savings Account.
At Comtech our objective is to enhance your financial well-being by providing personal and customized advice to help you plan for and achieve your financial goals. A Tax Free Savings Account may be the perfect addition to your investment strategy.
- TFSA can hold investment products such as term deposits, mutual funds*, stocks*, bonds*, or savings accounts
- Not locked into a term. Funds are accessible on your timetable
- One free withdrawal per month, $5 for each additional withdrawal
- No set up or annual fee on deposit accounts
- We pay the transfer-in fee of $50 on a $5,000 TFSA
- We pay the transfer-in fee of $100 on a $20,000 TFSA
- Transfer out administration fee $135
- Fully insured by the Deposit Insurance Corporation of Ontario for deposit accounts
- Pay no tax on interest earned
- Use your savings at anytime without tax penalty
- Start with as little as you want up to $5,500** per year
- Any portion not used gets added to your available contribution limit for the following year
- Income earned or funds withdrawn from TFSA won't affect your eligibility for federal income-tested benefits such as Old Age Security, Canada Child Tax Benefit, or Employment Insurance.
- When RRIF income placed into TFSA, the interest earned will not affect your Guaranteed Income Supplement (GIS)
- Can be transferred tax-free to the surviving spouse or partner in the event of a death
- Added tax shelter for investment income if you maximize your RRSP contribution annually
- TFSA can be used as security to obtain preferred rate of interest on a loan or line of credit
For more information, visit the Government of Canada website at www.cra.gc.ca/tfsa.
*Securities and securities related financial planning services are offered through Qtrade Advisor. Qtrade Investor and Qtrade Advisor are divisions of Qtrade Securities Inc., Member of the Canadian Investor Protection Fund. Mutual funds are offered through Qtrade Asset Management Inc., Member MFDA.
Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. Please read the prospectus before investing. Mutual funds are not guaranteed. Their values change frequently and past performance may not be repeated.
* Stocks, bonds, mutual funds and other securities are not guaranteed or insured by DICO.