Take Full Advantage of Tax-Free Savings Accounts

canada tfsaRecent data indicate that Canadians are saving more. Statistics Canada reports the Household Savings Rate is currently 5.4%, a 0.4% increase from the previous year. Likewise, a recent BMO Bank of Montreal study found that 48% of Canadians are now investing in tax-free savings accounts, a 23% increase from 2012.

It’s good that Canadians are saving, but unfortunately too few are making the most of it. Part of the problem is that many remain puzzled by the various investment vehicles available, and much of the confusion lays in tax-free accounts.  Read More…

7 Comments

  1. Teagan

    Although this study shows people are saving more i am still amazed that with the generous $5,500 we get that most people still don't actually use most of this space for tax saving purposes. Why i have no idea. But it goes to show people enjoy spending than saving.

  2. Raekwon C

    This is the first article to mention the importance of using investment accounts when interest rates are low in banks. So many banks are offering lousy rates that you are best to at least try investing in bonds which will surely net you a slightly better return.

  3. Marley

    The real problem with tfsa is the importance of keeping track of contributions since i know friends who have overcontributed due to thinking it is just a regular savings account where you can take and and deposit at any time. Big mistake.

  4. Truman

    Anyone know if 2015 will bring a increase to $6K?

  5. Jacquez Bastian

    The problem with TFSA is a lot of people still dont think they can save under anything that is not a bank savings account.

    Good for brick and mortar banks, bad for every other investment vehicle.

  6. Rey Homan

    This is the first time reading about this. Never knew it existed. I might consider using it soon since i am getting some extra money i would like to save for the future. Thank you!

  7. Jamel

    Answer me this: Is there an age limit to when tfsa's cant be contributed to, like there is for RRSPs at age 72?

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