Tax Free Savings Accounts (TFSA) were introduced by the Canadian Government in 2009.
With a TFSA, a TCU member has the opportunity to save money and earn interest without having to pay taxes on the interest earned.
- Canadians aged 18 and older are eligible to contribute up to $5,500 every year to a TFSA. The yearly contribution amount has varied since the TFSA was introduced in 2009. For information on the total cumulative TFSA contribution limit, please visit the Canada Revenue Agency website.
- Unused contribution room* can be carried forward to future years.
- Contributions to a TFSA will not be deductible for income tax purposes, but investment income, including capital gains, earned in a TFSA will not be taxed (even when withdrawn).
- TFSA holder may withdraw funds at any time; withdrawals may be restricted by investment terms.
- Amounts withdrawn will be added back to your contribution room the following year.
- Neither income earned in a TFSA nor withdrawals will affect your eligibility for federal income-tested benefits and credits.
- No set up or annual maintenance fees or withdrawal fees.
- Online viewing capabilities or annual statement available
- Regular deposit plan is available, such as monthly or biweekly
- No maximum age restriction
- Funds held in a TFSA can be used for security on a loan.
- Current investment rates can be found here.
- *You can find your contribution limit by accessing MyAccount on the CRA website or calling TIPS at 1-800-267-6999
- Transfer out requests are subject to a transaction fee as outlined in the TCU Accounts and Fees Guide unless transferred to TCU Wealth Management
- Your deposits are fully guaranteed by Credit Union Deposit Guarantee Corporation
- Valid Social Insurance Number is required to open a TFSA