Starting Out
If you’re new to managing your own finances, a TFSA is a great first step toward smart saving.
Unlike an RRSP or RRIF, the money you deposit into your TFSA has already been taxed – meaning you won’t pay tax when you withdraw it later. Within a TFSA, you can hold a range of investments such as savings accounts, GICs (Guaranteed Investment Certificates), or mutual funds, and any interest or growth earned is completely tax-free.
You can use your TFSA savings for long-term goals like retirement, or shorter-term plans such as travel, buying a car, or moving out on your own. And because there’s no penalty for withdrawals, your money is available whenever you need it.
Tip: Set up an automatic transfer from your chequing account into your TFSA each payday – even a small amount adds up over time.
Use our TFSA Calculator on our website to see how your savings can grow when you start today.
Building a Strong Financial Foundation
As life gets busier and your financial picture becomes more complex, a TFSA continues to be a powerful tool for both short- and long-term goals.
You can use your TFSA to:
• Save for a vacation, vehicle, or home renovation
• Plan ahead for larger goals such as an investment property or cottage
• Supplement your child’s education savings if their RESP is maxed out
Even if you don’t have a specific goal right now, your TFSA makes a great rainy-day fund – money that’s growing safely and tax-free until you need it.
Whether you’re saving for your next adventure or planning for a comfortable retirement, a TFSA offers flexibility, growth, and peace of mind – all while keeping your money working hard, tax-free.
Investing in a term deposit or GIC within your TFSA is a simple, secure way to earn a guaranteed return and make the most of your contribution room.
Enjoying Retirement
TFSAs were introduced in 2009, so many people still associate retirement savings primarily with RRSPs or RRIFs. But TFSAs can play a key role in your financial well-being during your later years as well.
There’s no age limit to contributing to a TFSA (you just need to be 18 or older), and your savings continue to grow tax-free. Withdrawals are also tax-free – they won’t count as taxable income and won’t affect your eligibility for government benefits such as OAS or GIS.
If you’ve already maxed out your RRSP contributions or are over 71 and no longer eligible to contribute to one, a TFSA is a flexible and tax-efficient place to keep growing your savings. It’s also a valuable option for estate planning, as TFSA funds can be passed on to beneficiaries without being taxed.
A Smart Choice at Any Age
Whether you’re saving for your next adventure or planning for a comfortable retirement, a TFSA offers flexibility, growth, and peace of mind – all while keeping your money working hard, tax-free.
At Northern Birch Credit Union, our team can help you make the most of your TFSA with personalized guidance and investment options that fit your goals.
Get a Head Start with our Early Bird TFSA Saver Promotion!
Earn 5.00% interest* until December 31, 2025 when you deposit your 2026 TFSA contribution into our Early Bird TFSA Saver short-term GIC. It’s a simple way to boost your savings! Visit our website to learn more, or call us today to get started.
(416) 465-4659
*Conditions apply. Rates subject to change at any time. Please call us for the most up-to-date rates. Visit our website for details.
