Want to open a registered savings account that allows you to earn investment income tax-free? Open a League Savings and Mortgage TFSA.
- A TFSA allows Canadian residents who are 18 and older with a valid social insurance number to set money aside tax-free throughout their lifetime.
- An individual can contribute up to their TFSA contribution room and the amount is not tied to their income.
- Contributions are not tax deductible for income tax purposes.
- Withdrawals are not reported as taxable income and are not subject to income tax.
- Withdrawals of contribution/earnings will increase contribution room for future years but not in the current year.
- Withdrawals will not impact eligibility for federal income tested benefits and credits (e.g. OAS, GIS, Age Credit, GST, EI, child-tax benefit and working income tax benefit).
- In the event of the holder’s death, any balance in a TFSA goes to their spouse, beneficiary or estate.
The following TFSA options are available at League Savings and Mortgage:
- Tiered Rate Plan – Minimum deposit $100
Similar to a savings account, with interest rates that increase as your account balance increases. A good choice if you may require use of your funds soon, or are not comfortable locking-in for a fixed term.
- Fixed Rate Plan – Minimum deposit $500
Similar to a GIC. You choose a fixed term of 1 to 5 years and the interest rate is guaranteed for that term. An excellent choice if your goal is maximum growth of your savings!
- One Year Redeemable – Minimum deposit $500
A one year deposit, redeemable after 30 days without penalty. Your principal and interest are guaranteed, making this an ideal product to reach your short-term goals.
Ask for information on transferring an existing TFSA from another institution. At League Savings and Mortgage, our qualified staff will be pleased to discuss our TFSA features in more detail.