Tax Free Savings Accounts

A Tax Free Savings Account (TFSA) helps you save money without paying taxes on withdrawals or earned interest. With TFSAs, you can set aside $5,000 annually for various savings options.

Details of Tax Free Savings Accounts:
- Anyone 18 or older can contribute $5,000 annually to a TFSA. If you are married, you and your spouse can contribute to a TFSA and together, you’ll save $10,000 tax free!
- You never lose room to contribute, even when withdrawn.
- You can make withdrawals any time.
- Contribution room can be carried forward to years in the future.
- TFSA contributions are not tax deductible on income taxes.
- You cannot claim capital losses.
- Neither withdrawals nor interest income earned will affect your eligibility for government benefits or credits.
- Any amount withdrawn can be re-deposited into the account in the future without reducing your contribution room.
- You can choose from a wide range of investment options including bonds, mutual funds, and Guaranteed Investment Certificates.

Here’s a short list of banks offering TFSAs. Visit their sites for current interest rate info:
Bank Of Montreal
Canadian Imperial Bank Of Commerce
->CTFS
->HSBC
->ICICI Bank
->ING Direct
->Presidents Choice (Pc Financial)
->Royal Bank Of Canada
->Scotiabank
->TD Canada Trust

If you withdraw, do you pay a tax?
Thx.