Take an important step towards accumulating wealth by making sure the money you’ve set aside works hard for you. As the balance in your savings account grows, you have options for moving it to an account or investment product that may earn you more.
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 plan accumulates earnings tax-free — and over the years that can really add up.
Other TFSA advantages:
Using a TFSA is a great way to save for mid- to long-term goals such as buying a car, renovating your home, travelling or starting your own business. Read more about the advantages of TFSAs.
1Some restrictions may apply depending on the investments chosen.
22012 contribution limit. This limit is indexed to inflation.
Registered Retirement Savings Plans
Even if retirement is a long way off, it’s never too early to start putting money into a registered Retirement Savings Plan (RSP). In fact, the earlier, the better! 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, and repay them over time on an annual schedule when you pay your income tax.
Read more about how RSPs can help you save.
Guaranteed Investment Certificates
Guaranteed Investment Certificates (GICs) and Term Deposits offer a low-risk investment opportunity that can potentially earn you more money than a regular savings account and that doesn’t require a lot of money up front. At TD Canada Trust, you can invest anywhere from 30 days to 5 years, and GICs and Term Deposits offer 100% protection of your capital and interest. You can purchase GICs and Term Deposits by logging in to your EasyWeb account and completing the customized application form, or visiting your local branch.
Learn more about GICs and Term Deposits and their advantages.
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 low-risk, government-issued Treasury Bills and units of money market mutual funds.
Learn more about TD Canada Trust Money Market Investments and see how they can work for you.
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 offers a wide range of mutual funds as well as 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.