Investing
Tax-Free Savings Account (TFSA)
A Tax-Free Savings Account (TFSA) is a flexible, tax-advantaged savings tool designed to help Canadians save and invest money without paying taxes on growth or withdrawals. Whether you’re saving for a major purchase, emergency fund, retirement, or investment growth, a TFSA is an excellent option to maximize your financial potential.
Unlike other registered accounts, contributions to a TFSA are not tax-deductible, but your earnings and withdrawals are completely tax-free.
Key Benefits of a TFSA
TFSA’s are a popular investment choice for individuals looking for tax free growth. Here’s why they might be the right choice for you:
Tax-Free Growth
- Any interest, dividends, or capital gains earned in a TFSA are not taxed, allowing your savings to grow faster.
Flexible Withdrawals
- Unlike an RRSP, you can withdraw funds at any time, for any reason, tax-free.
No Impact on Government Benefits
- Withdrawals from a TFSA do not affect income-tested benefits, such as Old Age Security (OAS) or the Canada Pension Plan (CPP).
Contribution Room Carries Over
- If you don’t use all your contribution room in a year, it carries forward indefinitely, allowing you to catch up later.
How Much Can You Contribute?
The TFSA contribution limit is set annually by the Canadian government. If you haven’t contributed the maximum in previous years, your unused contribution room carries forward.
Current TFSA Contribution Limits:
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2024 TFSA Contribution Limit: $7,000
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Total Contribution Room (if eligible since 2009): $95,000 (as of 2024)
Check your personal TFSA contribution limit through your CRA My Account.
What Can You Hold in a TFSA?
A TFSA isn’t just a savings account—it’s a powerful investment tool. At North Valley Credit Union, we offer a variety of investment options to help you grow your TFSA.
✔ High-Interest Savings Accounts – Earn interest while keeping your funds easily accessible.
✔ Guaranteed Investment Certificates (GICs) – Secure, guaranteed returns with flexible terms.
✔ Mutual Funds – Professionally managed investments that offer diversification.
NVCU partners with Investia Financial Services Inc. to offer a wide range of mutual fund options.
TFSA vs. RRSP – Which One is Right for You?
Feature
| Feature | TFSA | RRSP |
| Tax on Contributions | Contributions are not tax-deductible | Contributions reduce taxable income |
| Tax on Growth | No taxes on interest, dividends, or capital gains | Tax-deferred until withdrawal |
| Withdrawals | Tax-free anytime, for any purpose | Taxed upon withdrawal |
| Best for… | Short-term and long-term savings with flexibility | Retirement savings with tax advantages |
If you’re unsure whether to invest in a TFSA or RRSP, our investment advisors at North Valley Credit Union can help you choose the right plan for your financial goals.
Need help finding the right NVCU product for you?
Call us at (306)745-6615 or stop by the branch!
Get Started
How to Open a TFSA at North Valley Credit Union
Investing in mutual funds is simple with North Valley Credit Union. Our team of financial professionals will guide you through the process and help you choose the right funds for your financial goals.
Steps to Open a TFSA:
1. Meet with Our Advisors – Discuss your financial goals and investment options.
2. Choose Your Investments – Select from savings accounts, GICs, mutual funds, and more.
3. Make Your Contribution – Start with a lump sum deposit or set up automatic contributions.
4. Enjoy Tax-Free Growth – Watch your savings and investments grow tax-free over time.
Contact Our Advisors
For personalized investment guidance, contact:
Wade Penman – Investment Advisor
📞 Phone: 306-745-4027
📧 Email: wade.penman@northvalleycu.com
Schedule a meeting today to discuss how TFSA’s can fit into your financial strategy.
Start Growing Your Wealth Tax-Free Today!
A Tax-Free Savings Account (TFSA) with North Valley Credit Union gives you the flexibility to save, invest, and withdraw funds—all while earning tax-free income. Whether you’re saving for a home, a vacation, or retirement, a TFSA is a smart way to grow your money.
Get started today and take control of your financial future!
