With an RCU Tax Free Savings Account (TFSA),
your earnings are tax-free
The flexibility of a TFSA can help you achieve your goals
How a TFSA works:
- Any Canadian (age of majority or older) with a valid SIN number can open a TFSA.
- Invest up to your TFSA contribution limit. This year, the limit is $6,000, but if you have unused contribution room from previous years, you may be able to invest more.
- Fill your TFSA with a mix of savings and investments.
- Don’t pay tax on any growth earned inside your TFSA (including interest, dividends and capital gains).
Variable Rate TFSA
- Maximize your return with automatic monthly deposits
- Compounding interest
- Option to move to fixed rate at any time
Fixed Rate TFSA
If you don’t follow your TFSA contribution levels closely, you can end up having to fix over-contributions.
- That excess amount is subject to a 1% per-month penalty tax. You pay that penalty of every month for as long as that excess sits in your TFSA.
- The Canada Revenue Agency (CRA) sends you a letter when there is a TFSA over-contribution. The notice insists you withdraw the funds.
- Over-contributions happen all the time. You must remove it immediately. Fixing an over-contribution is a relatively easy process.
We know your financial needs go beyond traditional banking products. Choose to invest your money in Mutual Funds or other securities. Through Credential Asset Management Investment Inc. professionals at Rocky Credit Union, we can provide access to a comprehensive line of investments, including a variety of mutual fund companies.