3 ways a TFSA can help you save more
One of the best ways to save more is by keeping more — and giving less away in taxes. A Tax-Free Savings Account1 (TFSA) helps you do that.
There are many benefits of using a TFSA to save:
- Tax-free growth. You pay no tax on the investment income you earn in the account. You can hold many different types of investments in your TFSA, including savings accounts, Guaranteed Investment Certificates and mutual funds. The higher the returns, the faster your savings grow, tax-free.
- Income-splitting. Although you can’t contribute directly to your spouse’s or common-law partner’s TFSA, you can give or lend them money, which they can then contribute to their own TFSA. This allows you to effectively split income.
- Retirement planning. A TFSA complements an RSP or Retirement Income Fund (RIF) by providing additional savings when you have no more RSP contribution room or you are over age 71, and not allowed to contribute to RSPs anymore. It also provides tax-free income without affecting government benefits such as Old Age Security.
Learn more about the TFSA and how you can get started saving.
1To open a TFSA at TD Canada Trust, you need to be a Canadian resident, of the age of majority in your province, with a Social Insurance Number.
Harness the power of a Tax-Free Savings Account.