Tax Free Savings Account
Want to open a registered savings account that allows you to earn investment income tax-free? Open a League Savings and Mortgage TFSA.
What is a Tax Free Savings Account (TFSA)?
- A TFSA allows Canadian residents who are 18 and older with a valid social insurance number to set money aside tax-free throughout their lifetime.
- An individual can contribute up to their TFSA contribution room and the amount is not tied to their income.
- Contributions are not tax deductible for income tax purposes.
- Unused contribution room can be carried forward.
- Withdrawals are not reported as taxable income and are not subject to income tax.
- Withdrawals of contribution/earnings will increase contribution room for future years but not in the current year.
- Withdrawals will not impact eligibility for federal income tested benefits and credits (e.g. OAS, GIS, Age Credit, GST, EI, child-tax benefit and working income tax benefit).
- In the event of the holder’s death, any balance in a TFSA goes to their spouse, beneficiary or estate.
How do I get started with a TFSA?
Variable Rate TFSA Plan
Equivalent to a savings account, with the ability to lock into a term at any time. A good choice if you may require use of your funds soon, or are not comfortable locking-in for a fixed term.
One Year Redeemable TFSA
Minimum deposit $500
A one year deposit, redeemable after 30 days without penalty. Your principal and interest are guaranteed, making this an ideal product to reach your short-term goals.
Fixed Rate TFSA Plan
Minimum deposit $500
Similar to a GIC. You choose a fixed term of 1 to 5 years and the interest rate is guaranteed for that term. An excellent choice if your goal is maximum growth of your savings!
Minimum deposit $25
Maximize your money by depositing your TFSA contribution weekly, bi-weekly or monthly. The contributions will be invested in our Variable Rate Plan until the balance reaches $500 and can be switched to the Fixed Rate Plan upon request.
Looking to transfer your existing TFSA from another institution?
At League Savings and Mortgage, our qualified staff will be pleased to discuss our TFSA features in more detail.