Many of our financial experts have been talking about putting short-term savings into a tax free savings account.
This is a relatively new investment product introduced by the government in January, 2009. Essentially it allows individuals to save up to $5,000 a year in an investment account with no penalty upon withdrawing the funds. It's perfect for saving for a wedding, vacations, or any other big purchases.
Today, an Ipsos Reid poll found that just 10 months following their inception, most (71%) Canadians have now heard of the new Tax-Free Savings Accounts that became available. Conversely, one quarter (22%) of Canadians have not heard about them, while 6% don't know if they are aware of them.
Check out www.cra-arc.gc.ca/tx/ndvdls/tpcs/tfsa-celi/menu-eng.html to get more information about this very flexible investment option.
- Lisa Grace Marr
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