Tax Free Savings Accounts (TFSAs)

Have you opened your tax free savings account yet? This is my new year's resolution to open a tax free savings account and begin my emergency fund. TFSAs were introduced in 2009 as a means to encourage Canadians to increase their savings level. Every Canadian over the age of 18 can deposit $5,000 per year (unused deposit room is carried forward each year) into a registered savings account. There is no tax deduction for depositing the funds however any income (capital gains, interest or dividends) grows tax free. The choice of investments, much like RRSPs, is varied. The more common choices are: savings accounts, GICs, Mutual funds, ETFs, and individual stocks.

The hardest part is to open the account and initiate the regular deposit, but once done the savings begin immediately. So don't delay, open yours today.