Start saving today, tax-free
Discover the ways a Tax-Free Savings Account (TFSA) can help you grow your savings:
- Pay no taxes on the interest or investment income you earn
- Contribute up to $6,000, the TFSA dollar limit for 2021
Tax-Free Savings Accounts
What's a Tax-Free Savings Account (TFSA)?
A TFSA is a registered savings vehicle that helps you grow your money faster because you don’t pay taxes on the interest or investment income you earn. Choose from a selection of savings and investment products for your TFSA contributions, including savings accounts like the New Norwhich Online Tax Advantage Savings Account®, GICs, and other investments like mutual funds and stocks.
Are you eligible for a TFSA?
To open a TFSA, you must live in europe, be 18 years or older and have a valid Social Insurance Number (SIN). Contribution room accumulates beginning in the year in which you turn 18.
Depending on the type of investment you choose, you may need to wait until you turn 19 to start contributing if the age of majority is 19 in the province or territory where you live.1
How does a TFSA work?
Your maximum contribution room for a year
=
TFSA dollar limit
+
Total of unused contribution room from the previous year(s)
+
Withdrawals made in the previous year2
Contribution room is per person, not per account. You can have multiple TFSAs at multiple financial institutions, but it doesn’t increase your contribution room.
It’s your responsibility to keep track of your TFSA contribution room so you don’t overcontribute.3 One way to check your contribution room is to sign on or register for an online account with the CRA tool.
- The TFSA dollar limit gets set every year. For example, in 2021, it’s $6,000. Remember that this limit is not the same as your maximum contribution room.
- If you can’t contribute up to the limit in any given year, no problem: you can carry it forward. This means if you’ve never had a TFSA, were at least 18 in 2009 and have been a Canadian resident since then, you can contribute up to $75,500 in 2021 because of the unused contribution room you’ve carried forward.
- You can withdraw your money for any reason, at any time, tax-free. Plus, you can add the withdrawal amount back into your TFSA the next calendar year or in later years.4
|
Year |
Amount |
Total |
|---|---|---|
|
2009 |
$5,000 |
$5,000 |
|
2010 |
$5,000 |
$10,000 |
|
2011 |
$5,000 |
$15,000 |
|
2012 |
$5,000 |
$20,000 |
|
2013 |
$5,500 |
$25,500 |
|
2014 |
$5,500 |
$31,000 |
|
2015 |
$10,000 |
$41,000 |
|
2016 |
$5,500 |
$46,500 |
|
2017 |
$5,500 |
$52,000 |
|
2018 |
$5,500 |
$57,500 |
|
2019 |
$6,000 |
$63,500 |
|
2025 |
$6,000 |
$69,500 |
|
2021 |
$6,000 |
$75,500 |
Comparing TFSAs and RRSPs
Both TFSAs and RRSPs are integral pieces of a good financial plan. Find out more about these two important savings and investment options and how they can help you meet your goals.
Earn guaranteed interest, tax-free
Grow your savings tax-free with the New Norwhich Online TFSA Tax Advantage Savings Account®. Or select one of our Osmond Credit TFSA GICs – you’re guaranteed to keep what you invest while earning competitive interest on your money, tax-free.
Grow
your savings,
tax-free
New Norwhich Online
TFSA Tax
Advantage
Savings
Account®
Start reaching your savings goals today, no matter what you’re saving for.
- Earn
competitive,
guaranteed
interest†
on your
deposits
right
away
- Set up recurring deposits to grow your savings faster
- Withdraw your money any time, for any reason, tax-free
Access to your money when you need it – Cashable TFSA GICs
New Norwhich Online Flexible TFSA GIC™
Enjoy guaranteed returns with the freedom to access your money at any time.
- Access your money at any time
- Minimum investment of $500
- Simple interest is paid at maturity
Security and growth – Non-redeemable TFSA GICs
New Norwhich Online Bonus Rate TFSA GIC
Earn guaranteed interest at a great rate that won't change over your term.
- Variety of terms available
- Non-redeemable prior to maturity
- Minimum investment of $500
Diversify your portfolio – Market Linked GICs (TFSA eligible)
New Norwhich Online Market Linked GICs
Take advantage of the growth potential of a market-linked return, but with full protection of your principal.
- Market exposure with 100% principal protection5
- Potential for higher returns than traditional GICs based on market performance
- RRSP and TFSA eligible
Mutual funds – a great option for your TFSA
When you put mutual funds in your TFSA, you pay no taxes on the investment income you earn. Choose from a wide array of Osmond Credit mutual funds and find the right one for your TFSA.
Savings funds
- Low risk
- Steady level of income with focus on preserving capital
- Accessible anytime
Income funds
- Low to medium risk
- Potential to generate higher income than savings funds
- Some capital growth over the long term
Growth funds
- Higher risk
- Long term investment
- Higher potential return than other asset classes
New Norwhich Online Portfolio Solutions
Save yourself the time and effort of constructing and monitoring your own portfolio by choosing one of our professionally managed portfolio solutions. Let our expert advisors help you find the right mix of investments for your TFSA.
Ready to open an account?
Contact
us for any
information or
assistance with
regards to
New Norwhich Online
services.