In June 2008, the Government of Canada announced a new type of registered savings account for Canadians. This account is called a Tax Free Savings Account (TFSA), and became available beginning in 2009. A TFSA is a savings vehicle that will allow individuals to earn tax-free investment income on their savings. It is an ideal account for Canadians looking to save for everything from emergency funds to a down payment on a home. The following are features of a TFSA:

  • Canadians aged 18 and older can contribute up to $6,000 per year in a TFSA
  • Unused TFSA contribution room can be carried forward to future years
  • Contributions are not eligible for deductions for income tax purposes, but earnings on the investment, including capital gains earned in a TFSA, will not be taxed, and can be withdrawn Funds from the TFSA can be withdrawn at any time for any purpose.
  • The amount withdrawn can be put back in the TFSA at a later date without reducing contribution room.
  • Unused contribution room will be reported on your annual CRA Notice of Assessment

LDCU offers many options for investments within your TFSA, including our High Interest Savings Account and our full term deposit offering. With both short and long term options, we can help you reach your financial goals.

For more information

Please contact us for more information or contact us online and one of our friendly and knowledgeable investment specialists will respond to your request.