Earn Interest & Tax Free? We’re In!
Tax-free savings accounts (a.k.a. TFSAs) seem to be all the rage lately and for good reason. Introduced by the Federal Government in 2009, a tax-free savings account allows Canadians to save money without paying taxes on earned interest.
How Does a Tax-Free Savings Account Work?
The Federal Government allows Canadians, 18 or older, to contribute a certain amount to their tax-free savings account every year.
If you have an account, the government won’t tax you on any interest you earn, including capital gains. You won’t even be taxed when you take money out. If you do take money out from your TFSA, you’ll get the contribution room back the next year. If you don’t use up all the contribution room, you can carry it forward to the following year without limit.
How Much Can You Contribute?
- 2009 to 2012 – $5,000
- 2013 to 2014 – $5,500
- 2015 – $10,000
- 2016 to 2018 – $5,500 annually
- 2019 to 2022 – $6,000 annually
- 2023 – $6,500 annually
With our TFSA you get all the benefits of our Happy Savings account with the added bonus of it being tax-free!
- Interest calculated daily, paid monthly.
- 100% guaranteed by the Deposit Guarantee Corporation of Manitoba.
- No minimum balance required.
- No monthly service fee.
More information about tax-free savings accounts is available on the Canada Revenue Agency’s TFSA website