Tax-Free Savings Account

Tax Free Savings Account

The Tax-Free Savings Account (TFSA) enables eligible Canadian residents to earn tax-free investment income. The TFSA is useful for both long-term and short-term saving goals. This account can be used to build an emergency fund, save for a car, renovations, vacations, or even to start a small business.

Quick Facts

  • Canadian residents, 18 years and older, are allocated $5,500 of new TFSA contribution room each year.
  • Unused contribution room is carried forward indefinitely.
  • Contributions into a TFSA are not tax deductible; however, all investment income earned in the account is tax-free.
  • Depending on the investment, withdrawals can be made at any time and for any purpose, tax-free. Amounts withdrawn from a TFSA will not reduce your contribution room and can be added back in the following year.
  • Your TFSA may be used to purchase the same type of investments that are included in all arm’s-length RRSP investments, such as mutual funds*, bonds, term deposits, demand accounts, etc.
  • Funds within the TFSA can be used as loan collateral.
  • Your eligibility for federal income-tested benefits or credits will not be affected by investment income earned or withdrawn from your Tax-Free Savings Account.

High-Interest Savings Account

Our Tax-Free Savings Demand Account is a high interest savings account that delivers a competitive interest rate with unrestricted access to your funds. This is a great account for short-term saving goals.


Monthly Deposit Plan

The Future Plan is a monthly deposit savings plan that earns a floating one-year term deposit rate. All you need is an initial deposit of $50 and then decide how much you want to contribute on a monthly basis (minimum $50 per month). Future Plan deposits are automatically withdrawn from your account. After one year you can transfer your Future Plan contributions to your TFSA demand account or any TFSA term deposits.

Term Deposits

If you are looking for a secure investment that is guaranteed by the government and has a fixed rate of return, term deposits might be your answer.

  • 1 to 5-year terms
  • Non-redeemable
  • Unlimited deposit insurance
  • View rates

Mutual Funds*

Through Credential Asset Management Inc., a mutual fund dealer, Community Savings provides access to a large selection of mutual funds. Through in-depth, proprietary research and targeted product strategy, Credential Asset Management Inc. Mutual Funds Investment Specialists are able to tailor an investment plan for investors at any stage of the financial life cycle.

 


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TRANSFER TIP: As a TFSA holder, if you withdraw funds and deposit them to a new contract at another institution in the same calendar year, you could potentially create an over-contribution. If this is the case, you will incur a penalty from the Canada Revenue Agency (CRA). To avoid this penalty, it is important that you do a direct transfer between your Financial Institutions – similar to an RRSP transfer. If you need to do a direct TFSA transfer, drop by your branch or give us a call and we will be happy to help you with the proper transfer documentation.

 

 


* Mutual funds are offered through Credential Asset Management Inc. Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. Please read the prospectus before investing. Unless otherwise stated, mutual fund securities and cash balances are not covered by the Canada Deposit Insurance Corporation or by any other government deposit insurer that insures deposits in credit unions. Mutual fund values change frequently and past performance may not be repeated.

®Credential is a registered mark owned by Credential Financial Inc. and is used under licence.

 
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