TAX-FREE SAVINGS ACCOUNT (TFSA)
What is a TFSA?
The Tax-Free Savings Account (TFSA) is an investment vehicle that enables you to build up your savings in a tax-free environment, regardless of your annual income level.
Advantages of a TFSA
The investment income you earn in your TFSA is not taxable, even when you make withdrawals.
The income earned in the TFSA and the withdrawals made from the TFSA do not affect your eligibility for government benefits and credits such as the Guaranteed Income Supplement (GIS) and Old Age Security (OAS) Pension.
You have access to a variety of investment options: Guaranteed Investment Certificates (GICs), mutual funds and other investments eligible for self-directed accounts (brokerage accounts).
The TFSA helps you meet your savings needs throughout your life (not only after retirement). You can withdraw3 funds from your TFSA at any time, for any purpose. If you do not make the maximum annual contribution, your unused contribution room is carried forward to subsequent years.
Example: If you contribute $2,000 to your TFSA in 2014 and $5,000 in 2015, your contribution room for 2016 will be $14,000 ($3,500 carried forward from 2014 + $5,000 carried forward from 2015 + $5,5003 in 2016).
Do you have any other questions about the TFSA?
Why Choose the TFSA
Who is Eligible for a TFSA?
All individuals4 aged 18 and over who are Canadian residents qualify for a TFSA. The TFSA can be used for a variety of lifelong savings projects: to travel, build an emergency fund, save money to buy a home or, for retirement.
TFSA VS RRSP
RRSPs and TFSAs have different objectives. An RRSP is primarily aimed at building retirement savings, whereas a TFSA enables you to build up your savings in a tax-free environment, and withdraw3 funds from the account at any time, without any fiscal impact.
TFSA VS Non-Registered Account
Funds paid into a TFSA generate tax-free interest income. Compared to a non-registered investment, whose interest income is taxable, a TFSA offers much higher returns.
TFSA - Cash Balance
The Quick Contribution TFSA - Cash Balance – Enjoy substantial leeway (funds can be transferred at any time into the investment solution that bests meets your needs).
No fixed term, transferrable at any time
* Rate subject to change without notice. Interest is calculated on the daily balance and paid on the Friday after the 16th of each month. When the 16th is a Thursday or a Friday, interest is paid on the Friday of the next week.
Capital-Protected Investments (GIC)
The advantage of Guaranteed Investment Certificates (GICs) is that they guarantee your original investment. Some GICs also guarantee the final returns; while others offer market-linked returns.
Fees and Other Information
- To know our process of notification of charge increases or the introduction of new fees, please consult the brochure to this purpose, being : General Information and Agreement, section " Notice of Changes to Fees Listed in Your Guide to Personal Banking Solutions".
- To know our process in dealing with complaints relating to the processing of charges for a TFSA product, please click here.
1 This offer cannot be combined with any other offer, promotion or advantage. This offer can be withdrawn at any time. The interest rate is fixed for the entire term. The interest is calculated annually. The minimum deposit required is CAD 1,000. Unless you instruct the Bank otherwise, at maturity the principal and accrued interest will be reinvested for the same term at the then prevailing interest rate. You will have 10 business days after the new GIC is issued to cancel the renewal. Offer for personal banking clients. National Bank is a member of the Canada Deposit Insurance Corporation (CDIC). To invest via the Internet, you must have a National Bank account. If you do not, please contact one of our branches.
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