Build your savings faster, with flexibility in our TFSA
Most of us have lots of financial goals – some this year, some next year and some way down the road. Whether you’re saving for a large purchase like a home or a smaller purchase like a car or vacation, you can accumulate money more quickly in an account that doesn’t tax the growth on your investments.
Our TFSA lets you:
- Earn interest tax-free
- Access your money at any time without paying taxes
- Build your savings in secure, protected investments
Is our tax-free savings account right for you?
Yes, if you:
- Are at least 18 years old
- Want to earn a high rate of interest tax-free
- Want flexibility to withdraw your money whenever you want, tax-free
Benefits of a TFSA
TFSA investment options
Tax-Free Advantage Account
• No minimum investment
• All deposits earn the same high interest rate
• No set-up or maintenance fees
Guaranteed Investment Certificate (GIC):
1-year to 5-year term
• $2,500 minimum investment
• Can withdraw cash before maturity (subject to fees)
• No set-up or maintenance fees
Rates and fees
Our TFSA offers a competitive interest rate on all your money.
Tax-free savings account (TFSA)
Tax-Free Guaranteed Investment Certificates
1-5 year locked-in terms, interest compounded annually to maturity. Minimum $2,500 investment. Redemption prior to maturity is subject to market value adjustment and expense recovery fees.
1The 3.00% promotional variable annual interest rate is made up of the regular posted variable annual interest rate of 1.50% and the variable annual promotional rate of 1.50%. Interest is calculated daily and paid monthly from Dec. 3, 2018 to April 30, 2019 on net new deposits to the account received from Dec. 3, 2018 to March 15, 2019 to a maximum of $250,000. Any change to the regular interest rate will result in a corresponding change to the promotional interest rate. The offer and rates are as at Dec. 3, 2018 and subject to change without notice and cannot be combined with other promotional rate offers. Visit manulifebank.ca for full Terms and Conditions and for our current rates visit manulifebank.ca/rates. The variable annual interest rate is applied to all funds in the account. Interest is calculated daily on the total closing balance and paid monthly. Rate is subject to change.
2Funds withdrawn in one year cannot be contributed back to the TFSA in the same year the funds are withdrawn if you have reached the TFSA contribution limit. Over-contribution has a 1% penalty. 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.
Subject to each individual’s eligibility and contribution limits as determined by Canada Revenue Agency. Only Canadian residents 18 years of age or older are eligible to open a TFSA or contribute to one. The account holder is the only person who can contribute to the TFSA.
Manulife Bank is a member of the Canada Deposit Insurance Corporation (CDIC), which means your deposits are eligible for CDIC deposit insurance protection. Visit cdic.ca for information on eligible deposits.
Every Canadian over age 18 accumulates TFSA contribution room. Yours is the sum of this year’s limit, unused room from previous years, and any withdrawals made in previous years. Find out how much contribution room you have through the Canada Revenue Agency’s My Account website, MyCRA mobile app or Tax Information Phone Service at 1-800-267-6999.
No, unlike registered retirement savings plan (RRSP) contributions, the contributions you make to a TFSA are not tax-deductible. However, your money grows tax-free and, unlike RRSPs, you can take out your money tax-free at any time.
You can’t deposit money directly into your spouse’s TFSA, but you can give your spouse money that he or she contributes. That contribution will reduce your spouse’s TFSA room, not your own. This makes TFSAs an effective way to split income within a family. Your advisor can help you decide what works best for your situation.
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Get a tax-deduction for your eligible contribution and enjoy tax-deferred investment growth as long as your money remains inside your RRSP. When you’re ready to retire, you can withdraw your money – taxed at what will likely be a lower rate – to help support your retirement lifestyle.
Finance your retirement lifestyle with a Registered Retirement Income Fund (RRIF)
Your money keeps growing tax-deferred as long as it stays within your RRIF. Every year, you must withdraw a minimum, taxable amount, which you can use to help pay living expenses in retirement.
Get flexibility with a high-interest savings and chequing account
Choose a combined savings and chequing account with a high interest rate and free unlimited everyday banking transactions as long as you keep a minimum $1,000 balance. Bank anytime, anywhere through online and mobile banking and access your money at more than 3,700 ABMs across Canada.