Take in the Power of Your TFSA
Park your money and let it grow
There is no need to wait. Open your TFSA today and take in all its advantages!
Why should you open a TFSA account?
A TFSA (Tax Free Savings Account) allows you to set money aside in eligible investments or as a savings account, and watch those savings grow tax-free throughout your lifetime. Interest, dividends, and capital gains earned in a TFSA, as it reads, are tax-free, for life. Starting at 18 years old, this is a jewel that you should absolutely take advantage of, no matter how much you have. Your TFSA savings can be withdrawn from your account at any time, for any reason, and all withdrawals are completely tax-free. Yup. You do not have to worry about owing back, it’s a promise. Only thing you have to watch out for is your contribution limit, do not exceed it as this is when you will incur penalty fees from the federal government. Otherwise, the TFSA is really as simple as this!
Your contribution starts when you turn 18 years old and grows every year as illustrated in the table below. So, for example, if you were 18 in 2016, you have a contribution room of a whopping 54,000$ ! Whatever amount grows in interest, dividends, and capital gains in your TFSA account, again, will not be taxed! Save money from your summer job and load up your account :) !
You do not know how to invest yet? That is ok, you’ll eventually get there ;)
But what if we told you, you can park your money and make 3% interest annually (more depending on offers), just by letting it sit in a High Interest Savings Account (HISA) that also happens to be a TFSA; basically a HISA TFSA. Traditionally, interest made in a HISA is taxed like in a regular checkings or savings account that you should have with one of the big 5 Canadian banks: TD, Scotia Bank, RBC, BMO or CIBC. Best believe that a T5 slip awaits you when tax season approaches. Fortunately, the beauty of a HISA TFSA is whatever interest is accumulated inside the account cannot be taxed. All the gains are 100% yours and no T5 slip.
Where, when and how can you get a HISA TFSA account?
With a well known and reputed online bank called EQ Bank! Equitable Bank was founded under the name The Equitable Trust Company in 1970 in Ontario, Canada. It became a Schedule I Bank in 2013 and has since grown to become Canada's seventh largest bank by assets. Over the years, this bank has largely evolved and these are information you always want to look at when researching a new company to do business with. Their historical growth helps you make a decision on whether or not to trust them. Don’t forget, doing your own research is crucial, whether you’re a beginner or an expert!
In this case, EQ has no fees with alluring offers for beginners who are interested in parking their money and simply not looking at it anymore. In an EQ HISA TFSA account, you are guaranteed 3% annually. Signing up is even simpler, just use the link below. You can do it at any time for free.
https://www.eqbank.ca/personal-banking/tfsa
Interest is calculated monthly and deposited in your account every last or first day of the month (the more money you park, the more interest you make).
Take advantage of online banks and their HISA today! You can witness your money grow without worrying about owing the government back. You keep it all !
Thank you for reading
Brigitte Brobbey - Project coordinator of Scale Up Financial Empowerment
More newsletters like these will be coming out in hopes to provide trustworthy financial tips to our audience. If you like this newsletter, please LIKE, SUBSCRIBE & SHARE !
If you have any questions or wish for more information on this HISA TFSA and/or EQ Bank, please do not hesitate to contact bb.projectscaleup@gmail.com
The Scale Up Financial Empowerment Project publishes newsletters from local English Speaking Montrealers to highlight and promote financial empowerment for Canadians.
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