A very different kind of account, where your income will never be taxed. Never.

The TFSA is a special account in which any adult Canadian can deposit up to $5,000 a year (this limit will be indexed to inflation in increments of $500). Once the money is invested, all the returns – whether interest, dividends or capital gains – are completely exempt from taxation, and accountholders can withdraw both capital and profits at any time and use this money for any purpose, without paying tax on it.

Even better: the contribution limit is cumulative. If you don’t use it all in a given year, the unused portion is carried forward to subsequent years. Better still: any withdrawals free up an equivalent amount of contribution room that is added to the next year’s $5,000 plus any unused contribution room from previous years.

Another interesting feature: unlike the RRSP, the TFSA is not linked to earned income. All Canadian adults automatically have $5,000 in annual contribution room. And unlike the RRSP and RESP, the TFSA has no time limits: you can continue to make contributions and use the account throughout your lifetime.

Clearly, these features make the TFSA a much different vehicle from traditional registered plans. It really is a tax free account.

For more information or to open your FÉRIQUE TFSA:
Use our toll-free line from wherever you are, with no waiting, 8:00 a.m. to 8:00 p.m., Monday to Friday.

1 800 291-0337

You can also reach us by e-mail at: service.ferique@bnc.ca