Save faster for your retirement, your children's education, a new car or a family vacation without paying tax on your investment income. A Tax-Free Savings Account (TFSA) is another way to accomplish your financial goals.

TFSA Contributions

• As of January 1, 2009, all Canadian residents age 18 and over are eligible to contribute to a TFSA
• You can contribute up to $5,000 per year with contribution limit increases in subsequent years subject to inflation
• Your contribution limits are not determined by income and you will receive notice from Canada Revenue Agency to inform you of your contribution room on your Notice of Assessment
• Unused contribution room can be carried forward from year to year
• Amounts withdrawn can be re-contributed starting the next year
• Your contribution does not impact your annual RRSP contribution limit
• Contributions are not tax-deductible

All income earned in your TFSA, whether interest or other investment income or gains, is tax-free

Types of Investments

Investment in a TFSA will be similar to other registered plans however each financial institution may offer one or more ways to invest your money and the growth rates, terms, conditions and availability of deposit insurance will vary.

Qualified Investments will include:

• Term deposits/GICs
• Savings Accounts
• Mutual Funds*
• Stocks*
• Bonds*

• You can withdraw funds at any time and for any purpose without incurring tax
• Funds withdrawn will not affect your eligibility for federal income tested benefits such as Old Age Supplement, Canada Child Tax Benefit or Guaranteed Income Supplement
  

It’s easy to open a TFSA

Education Credit Union members may invest in a TFSA as early as January 1, 2009. Your initial deposit can be ‘held’ in a high interest savings account and transferred the first of the year. Click here to download and print a handy TFSA application form.

Contact Us
Member Services Education Centre 519-742-3500 Cambridge Place 519-623-2211 TechTown 19-772-3050 Click to email Member Services