Tax-Free Advantage Account
Saving for the short-term or long-term
A Tax-Free Advantage Account is a great way for Canadian residents, aged 18 years and older, to save for short-term goals, such as a new car, or longer-term needs such as a “rainy day” fund. The money will grow in the account tax-free and can be easily accessed, for any purpose, without incurring fees or taxes.
You’ll be allotted new contribution room each year and any unused portions will be carried forward to future years. And contribution room is never lost. The full amount of any withdrawal will be added back to your available contribution room for the following year – so you can continue saving for your next goal.
A flexible alternative to RRSP savings
Tax-free Advantage Account can also be an effective tax-sheltered* way to save for retirement. You will earn a great rate of interest** on every dollar in the account, tax-free. And, when you need the money in retirement, withdrawals will not impact government benefits such as Old Age Security or Employment Insurance Benefits.
Whether you use it for the short-term or long, the Tax-Free Advantage Account provides a flexible, high-interest** alternative for your savings.
How to open a Tax-Free Advantage Account
Contact your financial advisor to open a Tax-Free Advantage Account today. If you don't have a financial advisor, we can help you get the professional advice you need to make well-informed choices about your financial future. Find a financial advisor.
Government TFSA website
The Government of Canada TFSA website is a great resource for explanations, ideas and a calculator to help you understand TFSAs and how they could work for you.
Manulife Bank of Canada, member of Canada Deposit Insurance Corporation (CDIC).
* Individual tax situations and tax deductibility will vary. Tax laws are subject to change and therefore, tax treatment of Manulife Bank products cannot be guaranteed. Clients should consult their own tax and legal advisors with respect to their particular circumstance.
** The variable rate of interest is applied to all funds in the account. Interest is calculated on the total daily closing balance and paid monthly. Rate is subject to change.