This is what I know so far about the TFSA

Canada is launching a new form of account called the Tax Free Savings Account where you save up to 5000$ a year tax free when you put it in and tax free when you take it out. Unlike an RRSP it?s not tax deductible and it?s not taxable when you pull it out. I know that they have TFSA mutual funds, but I?m not so sure about index funds yet.

ING is launching the product in advance by allowing you to ?open? a TFSA, where they?ll hold it for you and double the interest you earn between now and Jan 1st, to ?pay for the taxes?. Granted you need to make more than 50$ in order to pay taxes and I?m not quite there yet but double interest, sign me up!!

I transferred my baby security fund of 500$ there for the 6% interest, the only thing I?m a bit worried about is that they say that if you take it out, you won?t be able to contribute for the rest of the year. Still I?m at the point where I?ll be building up my full security fund soon, so I?m not too worried. So we?ll call the 500$ cheating ahead to Baby Step 3b) and call it money towards my downpayment.

So please, spread the word?
You must register in order to see the links