You will see financial benefits when you open a savings plan that is registered with the Canadian government.
Your taxes can be deferred until a later date (and at a potentially lower rate), or your funds can be entirely sheltered from being taxed. With a non-registered investment account, you are required to pay taxes annually on income you earn from that account.
Tax-Free Savings Account (TFSA)
If you are 19 years or older and hold a valid Social Insurance Number (SIN), you can open a tax-free savings account to help meet your financial goals. (You can also start accruing your TFSA contribution when you turn 18).
Your savings will grow tax-free and you won’t pay taxes when you withdraw funds.
Benefits of a TFSA
- Grow your money tax-free.
- Pay no tax when you withdraw funds.
- Save for short-term goals with flexibility.