Tax Free Savings Account (TFSA)
Hailed “the single most important personal savings vehicle since the introduction of the RRSP” by the Government of Canada, the new tax-free savings account offers an innovative way to save money. Canadians need to save for many different purposes over their lifetimes. Reducing taxes on savings can help.
The TFSA allows Canadians to set money aside in eligible investment vehicles and watch those savings grow tax-free throughout their lifetimes — even when they withdraw. TFSA savings can be used for any purpose, such as to purchase a new car, renovate a house, start a small business or take a family vacation — the possibilities are endless!
All income levels and walks of life can benefit from a TFSA, but only careful review of your financial situation will determine how to optimize the use of TFSAs and that’s where Plainsview Credit Union fits in. Our staff will guide you through the myriad of investment options to make investment choices that fit you.
How the TFSA Works
- Starting in 2009, If you are a Canadian resident aged 18 and older, you can save up to $5,000 every year in a TFSA.
- Your contributions to a TFSA are not deductible for income tax purposes but the investment income, including capital gains, earned in your TFSA is not taxed, even when withdrawn.
- Your unused TFSA contribution room is carried forward and accumulates for future years.
- You can withdraw funds available in your TFSA at any time for any purpose — and the full amount of withdrawals can be put back into your TFSA in future years.
- Neither income earned in a TFSA nor withdrawals affect your eligibility for federal income-tested benefits and credits.
- You can provide funds to your spouse or common-law partner to invest in their TFSA.
- TFSA assets can generally be transferred to a spouse or common-law partner upon death.
TFSA INVESTMENT OPTIONS
CUSave
The CUSave account offers a convenient and flexible way to save your money at a great interest rate, and best of all, your money is never locked in! You can easily access funds when you need them; the first debit each month is free.
Term Deposits
Plainsview Credit Union offers a wide range of investment options to meet our members needs. With terms from 1 to 5 years, term deposits will earn a competitive rate of return, with the peace of mind in knowing that your investments are guaranteed.
Index-Linked Term Deposit
Get the best of both worlds with a Index-Linked Deposit. Index Linked Deposits combine the potential for the higher rate of return of a stock market with the safety of a GIC principal guarantee. The investment stays at Plainsview Credit Union, which means your principal is guaranteed, so even if the index doesn't perform well before its maturity, you'll still get your principal back in full! If the index does perform well, you'll receive an interest payment at the investment's maturity date.