TFSA: The hottest trend in savings

By David Pye, Clearfacts, August 9, 2010

Share

When first introduced in 2009, only a handful of savvy investors took advantage of Tax Free Savings Accounts (TFSAs). A year later, more than 4.6 million Canadians have seen the light, according to the Canada Revenue Agency.

Who are these enlightened investors? Are they investment gurus with a superior knowledge of current trends? Not at all. They are simply a new wave of everyday Canadians who have opted for the many advantages of TFSAs.
With this type of investment, you can deposit up to $5,000 per year, tax free, regardless of your annual income earned.

Similar to an RRSP, unused annual entitlements can be deferred to the following year.

The main attraction is that, with a TFSA, tax free withdrawals can be made to purchase a home or to take a vacation.

The advantages of a TFSA are twofold: TFSAs are a big plus for people with modest incomes who somehow find a way to save some money.

TFSAs also benefit individuals who have reached the maximum contribution limits of their RRSPs.

For more information on Tax Free Savings Accounts.

Read this article at :
http://www.clearfacts.ca/investments/other_investments/tfsa_the_hottest_trend_in_savings

Special report other articles

> An RRSP or TFSA: which is best?
By Clearfacts, 05 October 2011
> Time, automation, and incentives the keys to more savings
By David Pye, 01 September 2011
> Excessive contributions to a TFSA: Will you pay the price?
By Protégez-Vous, 09 June 2011
> TFSA: 70,000 taxpayers over-contributed
By David Pye, 06 June 2010
 
See terms of use

Submit a comment

All comments are moderated before they are published.

 

Terms of use

Close
  • 1.

    The comment section of clearfacts.ca, administered by The National Bank of Canada, encourages the discussion of subjects featured on the site through contributions published by its users.

  • 2.

    All comments, opinions and material submitted will only be posted when the site moderator has approved the content.

  • 3.

    Comments, opinions and material posted on this site do not constitute approval or endorsement by The National Bank of Canada.

  • 4.

    Users are, at all times, solely responsible for the content of their comments, opinions and material.

  • 5.

    The National Bank of Canada reserves the right to deny, delete or modify all comments, opinions and material submitted, at their discretion, particularly if:

    • It reveals personal and confidential information associated with an individual, including addresses and phone numbers;
    • It is unrelated to the editorial slant of the site;
    • It is off–topic;
    • It is abusive, defamatory, obscene or offensive;
    • It is threatening or harassing;
    • It contains personal threats;
    • It is discriminatory, racist, sexist or homophobic;
    • It incites violence or hatred;
    • It provokes;
    • It is false or misleading;
    • It runs contrary to the laws and rules in effect;
    • It is advertising or commercial in nature;
    • It quotes editorial without citing a source;
    • It contains content that is subject to royalties without the necessary authorizations

    The National Bank of Canada will not be held responsible for comments, opinions or material posted that violate the rules stated in the Moderation policy.

  • 6.

    The National Bank of Canada encourages users to show respect, restraint, courtesy and tolerance with their comments, opinions or material.

  • 7.

    All comments, opinions and material submitted become the property of The National Bank of Canada, without compensation of any kind.

  • 8.

    The National Bank of Canada is not required to delete any comments, opinions or material after a request has been made. All comments, opinions or material submitted will be archived and stored.

  • 9.

    The National Bank of Canada is not responsible for any external links suggested in the comments.

  • 10.

    The National Bank of Canada reserves the right to delete any of the comments on clearfacts.ca without notice.

  • 11.

    The National Bank of Canada reserves the right to modify the comment moderation policy at its discretion and without notice.

  • 12.

    To reach the site moderator, click here.

Close

0 COMMENT