TFSA

A Tax-Free Savings Account (TFSA) will help you save money for your short and long-term goals. Since any growth of investments inside a TFSA is tax-free, you will pay no taxes on the interest or investments you earn, even when the money is withdrawn. The contribution room for 2024 is $7,000, up from $6,500 in 2023.

Good for:

• Saving for a down payment on a home.

• Shorter-term savings goals, like a vacation or new car. 

• Building tax-free savings during your retirement years. 

Enjoy the Benefits of a TFSA

It's More Than Just a Savings Account

Despite it's name, a tax free savings account is more like a tax shelter in that you can put a variety of investments into your TFSA and protect them all of them from tax. Some types of qualified investments that can be put into a TFSA include:

• Cash

• Terms (GIC's)

• Government and corporate bonds

• Stocks

• Mutual funds

As these investments grow you are not taxed on the growth. In fact, if you eventually use your TFSA to fund your retirement, those funds do not count as income and are not taxed.

You Can Make it Automatic

YCU can set up a pre-authorized contribution plan (PAC) and transfer as little as $25 from any of your other accounts to fund your TFSA.  Many members maintain a high interest savings account and then transfer funds to their TFSA when it comes time to maximize their contributions for the year. Either way, you always have funds invested in your TFSA that are tax-sheltered.  ​

There are many strategies for using a TFSA and we know all of them. Talk with one of our investment experts and get a Tax-free Savings Account working for you.