More Canadians have TFSAs, but many hazy on details
Most Canadians believe they are knowledgeable about tax-free savings accounts, but 89 per cent don’t know what can go in the accounts and 81 per cent are unaware of the annual contribution limit, according to a recent study.
A rising number of Canadians are using Tax Free Savings Accounts (TFSAs) to save for the future, but a large percentage are still unaware of what assets can be saved with the accounts, and that there is an annual contribution limit. A recent study shows that 48% of Canadians have a TFSA - more than double the numbers from 2012.
A TFSA is an excellent way to save for retirement, the down payment on a home, or to be used as an emergency fund. Any Canadian citizen 18 years or older is eligible and there is no minimum contribution to open an account. The accounts can house six different types of investments and have an annual contribution limit of $5,500.