save tax free
Effective July 1, 2022 Sunova Credit Union is Access Credit Union.
The new Access Credit Union promises to offer some of the best financial products and services for every stage in life. We’ve streamlined our account package options to best meet the needs of our combined membership. We are pleased to share the new account package lineup and service fee schedule which will come into effect in October 2022.
Account package grids will be available in July 2022.
Please visit cusuccess.ca for additional information.
Kick your savings into high gear! With a Tax Free Savings Account (TFSA) you can be watching your new big-screen television, cruising around in your new car, or taking your dream vacation even sooner as your savings grow that much faster.
Introduced by the Government of Canada in 2009, a TFSA allows you to save money without paying taxes on earned interest, so your money grows more quickly. Unlike other registered plans, you can withdraw your money whenever you want without being taxed. Up to two free withdrawals can be made per month and standard transaction fees will apply for any additional withdrawals.
Sounds good, but we bet you still have a few questions. Don’t worry – we have answers! Here are some common questions we get about TFSAs:
How does the TFSA work?
The Federal Government allows Canadians, 18 or older, to contribute a certain amount to their tax-free savings accounts every year. How nice of them!
If you have an account, the good ole’ government won’t tax investment income you earn, including capital gains. You won’t even be taxed when you take money out, and if you do take money out from your TFSA, you’ll get the contribution room back the next year. If you don’t use up all the contribution room, you can carry it forward to the following year without limit.
How much can you contribute?
- 2009 to 2012 – $5,000 annually
- 2013 to 2014 – $5,500 annually
- 2015 – $10,000
- 2016 to 2018 – $5,500 annually
- 2019 to 2022 – $6,000 annually
What types of investments are eligible for a TFSA plan?
You can hold a wide range of investments in your TFSA plan including our Superior Savings account, term deposits, mutual funds*, etc.
What are the benefits?
- Flexible savings (car, down payment, vacation, cottage, retirement, etc.)
- Tax savings – interest you earn is not taxable
- Gives you peace of mind knowing you have access to your funds whenever you need (depending on the type of investment you choose)
- Flexible terms – choose an investment term that suits your individual situation, deal for short-term and long-term savings goals
What are the differences between a TFSA and an RRSP?
Unlike RRSPs, funds from your TFSA are not added to your income, which means they are not subject to income tax. Interest earned on any contribution is not taxed and can be withdrawn at any time, for any reason. While RRSPs are tax-deductible, contributions to a TFSA are not deductible for income tax purposes.
Want more information?
If you’d like to know how a TFSA may fit into your savings and investment plans, contact any of our branches. Additional information is also available on the Canada Revenue Agency’s TFSA website.
As always, don’t hesitate to give us a call. We’d be happy to answer any additional questions you may have regarding a TFSA or any other investment products we offer.
Please note: a $100 fee will be applied to any full or partial registered product transfer out.
*Mutual funds are offered through Credential Asset Management Inc. Mutual funds and other securities are offered through Credential Securities, a division of Credential Qtrade Securities Inc. Credential Securities is a registered mark owned by Aviso Wealth Inc.