Tax Free Savings Account

Introduced in 2009 by the Federal Government, a registered Tax-Free Savings Account (TFSA) allows Canadians 18 years of age and older to save up to $5,000 each year, tax free.  Any unused contribution room is carried forward, year after year.  That means, if you didn't contribute in 2009 or 2010, your maximum contribution for 2011 would be $15,000.

The Tax Free Savings Account (TFSA) is beneficial to those who want to save in a registered account, but will likely need the funds before retirement.  Whether you're saving for a new vehicle, home renovations, a vacation, or to start up a small business, the TFSA is a more flexible option for your personal savings.

TFSA facts and features:

  • Available to all Canadian residents 18 years of age or older holding a valid Social Insurance Number
  • Annual contribution amount of $5,000, any unused contributions may be carried forward with no lifetime contribution limits
  • Withdrawals are allowed at anytime, but may be restricted by investment terms
  • Withdrawals are not reported as income and are not subject to income tax
  • TFSA withdrawals may be recontributed in the following year(s) without affecting your annual contributions, but not in the current year
  • TFSA contribution limits are separate from RRSP limits
  • The Canada Revenue Agency reports your allowable contribution room, and eligibility on your annual Notice of Assessment.
  • Withdrawals from your TFSA will not impact eligibility for income related benefits/credits such as Old Age Security, Child Tax Credit, etc

Other Important Facts

  • You are responsible for ensuring that your contribution room has not been exceeded
  • If you do over-contribute, you will be subject to a 1% tax per month on the over-contributed amount until it is withdrawn

At Creston & District Credit Union we have the following options available to you:

  • Variable savings with no minimum deposit, and is redeemable on demand
  • Fixed rate term deposits, 1-5 years, with minimum $500 investment
  • Redeemable or non-Redeemable options on fixed rate terms
  • No set up or administration fees *
  • Deposits are 100% guaranteed by the Credit Union Deposit Insurance Corporation (CUDIC).

*except when the TFSA is transferred to another financial institution that is not a credit union.

View current TFSA term deposit rates and products

To Open A TFSA Account

  • Visit CDCU and see one of our member service representatives to start your TFSA today
  • Once you have opened your TFSA account, you can make contributions in branch, through online banking, or set up an automatic contribution

For More Investment Options

For more investment options such as mutual funds, contact our mutual funds representative Jason Truscott, Licensed Financial Advisor & Member of the Financial Advisors Association of Canada (Advocis®) at Growth Financial Corp. located in Creston Valley Insurance at the Creston Valley Mall.

For more information on TFSAs visit the Government of Canada TFSA website.

See how much you can save, try our TFSA Calculator.