Tax-Free Savings Account (TFSA)

Accumulate capital and withdraw money at any time, tax-free.

Is this savings account for you?

  • You are 18 years of age or older.
  • You save to realize projects or to prevent the unexpected.
  • You want to accumulate savings tax-free.
  • You prefer to be able to withdraw money at any time.
  • You have a chequing account at the Caisse and are enrolled in the Tax-Free Savings Account Plan issued and administered by Desjardins Trust. Ask for it now.
Outlines

Account type :Registered Savings Account

Return paid :Increasing interest rate based on the balance maintained

Fees :None

Tax advantage :Accumulate and withdraw savings tax-free

Type of plan :Registered investment where income (interest, dividends and capital gains) and withdrawals are not taxable

Maximum annual contribution :$5,000 per year since 2009; thereafter, indexed to the inflation rate and rounded out to $500 increments

Features
Eligible investments Now available on AccèsD:

  • TFSA Savings Account: Combines flexibility and high returns, with tiered interest rate based on balance maintained
  • Guaranteed fixed-rate investments: Capital 100% guaranteed investment with a set, guaranteed interest rate until maturity
  • Market-linked Guaranteed Investments: Capital 100% guaranteed investment whose returns are based on a stock market index or a portfolio of financial assets
  • Investment Funds*: Funds that allow you to diversify your portfolio
Contribution limit Includes:

  • Maximum annual contribution ($5,000 per year since 2009; then, indexed to the inflation rate and rounded to the nearest $500 on a yearly basis)
  • Any unused contribution room carried over from the previous years
  • Any amounts withdrawn from the TFSA during the previous year

Excess contributions are subject to a tax of 1% per month**.

Income taxation
  • Income generated is not taxable (interest, dividends and capital gains)
  • Contributions to the account, capital losses and interest on amounts borrowed to invest in the account are not deductible for tax purposes

Visit the Canada Revenue Agency

Full or partial withdrawal
  • Qualifying amounts withdrawn** are not taxable and will generate new contribution room for the following year
Transactions
  • Deposits*, withdrawals, transfers permitted at all times.
  • No minimum amount required
Periodic Investment Plan
  • Make automatic transfers into your account.
  • You decide how much and how often (minimum of $25 per transfer)
Interest
  • Paid monthly and non-taxable
Monthly fees
  • No fees
Account statement
  • Monthly statement of account included in the chequing account statement you receive by mail or online
  • Find out more about monthly statements of accounts
Other
  • The combined money you have in eligible registered savings plans or contracts is automatically covered in full by the Deposit Insurance Corporation in Ontario (DICO).
  • Find out more about deposit insurance (FAQ)

* Mutual Funds are offered through Credential Asset Management Inc. Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. Please read the prospectus before investing. Unless otherwise stated, mutual fund securities and cash balances are not insured nor guaranteed, their values change frequently and past performance may not be repeated.

** Following changes recommended by Finance Canada, withdrawals of over contributions, non-qualified investments and amounts attributable to swap transactions, or of any related investment income, do not create additional TFSA contribution room. Some of this income will be taxed at 100%.

More information

Did you know?

Ontario residents may now directly designate a beneficiary on their TFSA.

Want to learn more about Tax-Free Savings Account (TFSA)

Visit the Canada Revenue Agency

 

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