Put your money to work for you
You’ve been doing everything right: reducing debt, watching what you spend and putting money away into savings. So take another important step towards accumulating wealth by making sure your money works hard for you.
The Tax-Free Savings Account
The Tax-Free Savings Account (TFSA) is a savings vehicle that everyone should consider. Why? Because the money you deposit into this registered account accumulates earnings tax-free and over the years that can really add up.
Other TFSA advantages:
- access your money tax-free anytime1
- contribute up to $5,5002
- carry forward unused contribution room from previous years
- re-contribute any amounts you withdraw3
Using a TFSA is a great way to save for mid- to long-term goals, such as buying a car, travelling or starting your own business. Read more about TFSAs.
Registered Retirement Savings Plans
Even if retirement is a long way off, it’s never too early to start putting money into a Retirement Savings Plan (RSP). Contributing to an RSP can earn you a tax deduction, and your investments grow tax-deferred until you withdraw them.
You can also draw on RSP funds without paying tax on them to purchase your first home or finance a return to school under the government’s Home Buyers’ Plan and Lifelong Learning Plan. Read more about how RSPs can help you save.
Guaranteed Investment Certificates
Guaranteed Investment Certificates (GICs) offer a low-risk investment opportunity that can potentially earn you more money than a regular savings account and don’t require a lot of money upfront. You can invest anywhere from 30 days to 5 years, and GICs offer 100% protection of your capital. You can purchase GICs from TD Canada Trust.
Money market investments
When you invest in these kinds of short-term investments, you’re essentially lending your money to governments, banks or corporations in exchange for a set interest rate. These investments include things like low-risk, government-issued Treasury Bills. You can also buy units of money market mutual funds. Learn more about the TD Canada Trust Money Market Investments and see how they can work for you.
Money market investments
When you buy units of mutual funds, you pool your money with other investors for greater purchasing power to buy securities such as stocks and bonds. Professional money managers make the investment decisions concerning which stocks, bonds or other securities will be used to meet the fund’s investment objectives.
There are many kinds of mutual funds suited to different investment goals. TD Mutual Funds offer more than 60 mutual funds and 20 professionally managed portfolios, so you can choose based on your risk tolerance and investment objectives. Learn more about the basics of mutual funds and the benefits they can bring.
Get started with saving
Do you have these accounts working for you?
Check back to the Review Your Accounts section, and see if you need to add them to your day-to-day finances plan. Then, visit your local branch or apply online to open an account. Once you have your investment accounts set up, you can easily add more savings or make changes by logging into EasyWeb Internet banking.
1 Some restrictions may apply depending on the investments chosen.
2 Annual contribution limit for 2016 is $5,500. Annual contribution limit from 2009 to 2012 was $5,000. Annual contribution limit from 2013 to 2014 was $5,500. Annual contribution limit for 2015 was $10,000. Annual TFSA contribution limit is subject to change by the federal government.
3 The amount you withdraw can be re-contributed to your TFSA the following year or years without impacting your contribution room.