TFSAs

Tax-Free Savings Accounts provide tax benefits for saving in Canada. The account allows for withdrawals at any time on a tax-free basis. A TFSA can be used by anyone over the age of 18, anytime for any reason. TFSAs provide benefits to investors who would like to supplement retirement savings without incurring additional taxation.

• How it works? — TFSA offers Canadians the option to deposit up to a specified amount into the account for tax free savings. Contributions are not tax deductible. Unlike an RRSP, when withdrawals are made there is no withholding tax deducted and the amount of the withdrawal doesn’t need to be added to your income in that taxation year.
• General TFSA rules — Contributions can be made to a TFSA each year after the age of 18 and have no rollover age. Accounts are only available to individuals. A limit is set each year based on inflation. If you do not use your allotted contribution room in any given year the amount is carried forward indefinitely.
• Products available for TFSAs — The Biggar and District Credit Union provides access to several products which are TFSA eligible. We offer a variable savings and a CUSave™ from deposits of $5,000 or more. We also offer 1-5 year Non-redeemable terms, Bonus Builder and Payroll terms, Index/Equity Linked terms, and GIC; and through Credential® you have access to mutual funds*, stocks and bonds*, and segregated funds**. Speak to your representative to determine which is right for you.

*Mutual funds are offered through Credential Asset Management Inc. and mutual funds and other securities are offered through Credential Securities Inc. Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. Please read the prospectus before investing. Unless otherwise stated, cash balances, mutual funds and other securities are not covered by the Canada Deposit Insurance Corporation or by any other government deposit insurer that insures deposits in the credit unions. Mutual funds and other securities are not guaranteed, their values change frequently and past performance may not be repeated. Credential Securities Inc. is a Member-CIPF. ®Credential is a registered mark owned by Credential Financial Inc. and used under licence.

**Credential Financial Strategies Inc. offers financial planning, life insurance and investments to members of credit unions and their communities.