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Originally Posted by Bobblehead
New budget just had a new type of savings account announced today.
It allows every person to to put up to $5000 in a special bank account and have it gain interest tax free. You don't even need to report when you withdraw the money.
So this is very similar to an RRSP, but to promote personal savings.
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From Government website:
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Tax-Free Savings Account (TFSA)
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Canadians need all the help they can get to save money.
The TFSA will allow Canadians to watch their savings grow tax-free throughout their lifetimes.
Canadians can contribute up to $5,000 every year to their TFSA and carry forward unused room to future years. There is no lifetime limit and no tax on investment income earned, including capital gains.
The TFSA can be used any way you like—for example, to buy a new car, pay for an emergency, finance a child’s wedding or bankroll a dream family vacation.
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I'm very happy about this. Great plan to help Canadians save and invest more money. Should do wonders long term economically and productivitywise.