Introducing the TAX FREE SAVINGS ACCOUNT (TFSA)!

Now there is another way to grow your savings - the Tax Free Savings Account made available by the Federal Government.  Canadian residents over the age of 18 will be able to contribute up to $5000 per year without being taxed on interest income or capital gains. 

• Contribute $5000 per year.  Any unused contribution room will carry forward indefinately as future contribution room.
• No income is required.
• Withdrawals are allowed for any reason with no tax penalties.*

The Tax Free Savings Account can be a powerful tool to boost your savings.  For example, if you contribute $5000 to your Tax Free Savings Account for 20 years...

(Based on 6% return; income range $40,000 - $80,000; assumed that TFSA contributions are invested in a diversified portfolio with a return consisting of 40% interest, 30% dividends and 30% capital gains; contributions are made at the start of the year in lump-sum)  

Your savings would be $24,884 more in a TFSA compared to a taxable account.  That can make a big difference in your nest egg!  

If you would like to see what the Tax Free Savings Account can do for you, check out the government calculator here.

The Tax Free Savings Account is another way the professionals at Northern Lights Credit Union can help you meet your financial goals.  To see the Northern Lights Credit Union investment rates click here.

For more information about the Tax Free Savings Account, contact your local branch!

*subject to investment vehicle chosen.