Did you know that if you’re 18 years of age or older and have a valid social insurance number (SIN), you can set money aside tax-free with a tax-free savings account (TFSA)? TFSAs aren’t only for people planning for retirement, they’re for everyone. Whether you’re saving for your spring break getaway, your first car, or for your future, TFSAs are a great tool to help you save more.
What are the benefits of opening a TSFA?
1. It’s free and it’s easy. You can contact your local financial institution to set one up. Once you’re setup, most online banking services let you keep track of your contributions.
2. You can contribute as much or as little as you like, whenever you like, up to the amount in your contribution room. When you have some extra money, you can invest it in your TFSA and not be taxed on those savings. Or if your budget is tight, you don’t have to contribute as much or anything at all.
3. You don’t have any fixed rates of payment or interest as long as you stay within your contribution limit. Your contribution limit is made up of the annual TFSA limit of $5,500, any unused contribution room from the previous year, and any withdrawals you made during the previous year.
4. You can track your contribution room online using the Canada Revenue Agency’s (CRA) My Account secure service. With My Account, you can also make sure your TFSA is registered with the CRA and review any related transactions.
5. Although you are responsible for managing your TFSA contributions and withdrawals, your financial institution can help you manage it as well.
Opening a TFSA is simple and easy. Contact your financial institution and boost your savings today.