The Federal Government has introduced a new registered savings account that allows taxpayers to earn investment income tax-free. The Tax-Free Savings Account (TFSA) is available to Canadian Residents age 18 and older. TFSA allows taxpayers to set money aside in eligible investment vehicles and watch those savings grow tax-free throughout their lifetime.

There are no restrictions on the way TFSA Account contributions and earnings may be used (i.e. purchase a car, renovate a home, start a small business, take a family vacation, or just save for a rainy day). All income levels and all walks of life can benefit from a TFSA. But only a careful review of each person's financial situation will determine how to optimize use of RRSP's, RESP's, RRIF's and TFSAs

Contributions to a TFSA may only be made by the Holder and the amount is not tied to the income of the Holder.

• Qualified Investments
  The types of eligible investments are restircted under the Income Tax Act and include;

  • Term deposits and GIC's
  • Variable interest savings accounts
  • Credit union shares
  • Index-Linked term deposits
  • Mutual Funds
  • Publicly traded securities
  • Bonds

If you would like to open a Tax Free Savings Account or have any additional questions you can contact an iNova Credit Union Account Manager for an appointment.

 Note: The content herein is not intended to provide specific tax advice and should not be relied upon in this regard. Please consult your tax advisor to find out which strategies suit your tax situation.  iNova Credit Union makes no guarantee, representation, or warranty and accepts no responsibility or liability as to the tax treatment of these services.