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 Offer in effect from January 12 to March 1st, 2017. 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 minimum deposit required is CDN $500. The offer applies to an investment in a non-redeemable, fixed-rate guaranteed investment certificate (GIC) at 1.65 %, in Canadian dollars, for a term of 19 months, to be invested in an RRSP, a TFSA or in a non-registered investment (outside of an RRSP) at National Bank. The offer does not apply to any GICs already held by a client. Interest may be simple or compound, as the client chooses, with the exception of GICs invested in an RRSP, for which interest is compound only. Simple interest is payable monthly, semi-annually or annually, depending on the date the investment was issued. Compound interest is calculated on each anniversary date of the investment, compounded annually and payable at maturity. Clients will have 10 business days after the new GIC is issued to cancel the renewal. National Bank is a member of the Canada Deposit Insurance Corporation (CDIC).
2 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 rate is calculated on an annual basis. The minimum investment required is CDN $1000. Unless otherwise indicated by the client, GICs invested in an RRSP or in a non-registered investment (outside of an RRSP) will, upon maturity, be automatically renewed for the same amount (principal and unpaid interest) for an equivalent term at the interest rate in effect. You will have 10 business days after the new GIC is issued to cancel the renewal. Offer available for personal clients. National Bank is a member of the Canada Deposit Insurance Corporation (CDIC). To be able to contribute, you need a National Bank account.
3 Subject to the terms and conditions of the selected investments.
4 Other than trusts