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Tax-Free Savings

Because no one wants to pay more taxes.

It's likely that you'll have different savings objectives at different stages of your life. Whatever your goal, a Tax-Free Savings Account (TFSA) is a great way to save for pre-retirement needs. A TFSA lets you invest without tax consequences on withdrawals, all while ensuring you keep your RRSP for retirement.

​A Tax-Free Savings Account can be invested in a number of ways. Browse the options below to learn more about each type of Tax-Free Savings Account and an overview of important things to know about TFSAs.

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Tax-Free Variable Savings

Invest your money in a high interest, tax-free savings account that won't force you to "lock in" your funds.

A Great Rate

You'll earn a higher interest rate with a minimum balance of $5,000.

Unlimited access

Enjoy the flexibility of being able to access your money at any time, without locking in your funds.

Daily Interest

Interest is calculated daily, and paid monthly on full balance.

*Minimum balance of $5,000 to obtain highest interest rate.

To learn about all of the investment options available to you, click here to review our whole suite of investment products.

 

Market-Linked GIC

Market-Linked GICs are a unique investment option where returns are linked to the performance of the stock market. The performance in the stock market or sector to which the GIC is “linked” determines the rate of return, but the principal investment is always secured and guaranteed.

Feature Product:

3 and 5 year terms available through Responsible Investments.
Your investment will be automatically reinvested in a similar product with comparable terms and conditions.

Capital Guaranteed

Capital 100% guaranteed at maturity

Return

Return on the investment is based on the appreciation of the benchmark securities and can only be known at maturity. Return could be nil at maturity.

Minimum Deposit

Minimum $1000 deposit required.

 

Pay Yourself GIC

Building your savings is easier when you have a plan in place. The YNCU Pay Yourself Guaranteed Investment Certificate (GIC) brings you one step closer to reaching your financial goals by creating a monthly savings plan that's simple to set up and easy to use.

Rate: You'll benefit from the security of a guaranteed rate for the duration of your term.

Term: 1 year term available. 

To simplify the renewal process, this investment will automatically renew into the same investment at the posted rate.

Interest & Principal Guaranteed: Guaranteed growth and 100% principal protection.

Interest: Interest paid at maturity.

No Minimum Deposit: No minimum monthly preauthorization contribution (PAC) is required.

It's up to you. Choose the dollar amount that is right for you!

No minimum monthly preauthorization contribution (PAC) is required.

 

Step Up Term Deposits

Build your balance at an escalating rate with a Step Up Term Deposit. You'll benefit from a higher interest rate year after year, with the security of knowing your principal is protected.

Rate

Earn a higher rate year-after-year with an escalating interest rate.

Term - Feature Product

  • 3 Year Step Up Term Deposit (Redeemable)
  • To simplify the renewal process, this investment will automatically renew into the same investment at the posted rate.

Interest & Principal Guaranteed

Guaranteed growth and 100% principal protection.

Interest

Interest can be paid annually, or at maturity.

Minimum Deposit

Minimum $1000 deposit is required.

*To learn about all of the investment options available to you, click here to review our whole suite of investment products.

 

Term Deposits

Enjoy never paying tax on your contributions and interest earned.

A long term deposit is a great option for growing your money, with the security of knowing your principal is protected. YNCU offers both redeemable and non-redeemable long term deposits.

Rate

Enjoy the security of a guaranteed rate.

Term - Feature Product:

  • 1 to 5 year non-redeemable terms available.
  • To simplify the renewal process, this investment will automatically renew into the same investment at the posted rate.

Interest & Principal Guaranteed

Guaranteed growth and 100% principal protection.

Interest

Interest can be paid monthly, annually, or at maturity.

Minimum Deposit

Minimum $1000 deposit is required.

*To learn about all of the investment options available to you, click here to review our whole suite of investment products.

 

Top 10 Things to Know about the Tax-Free Savings Account (TFSA)

 

All Canadian residents can open a Tax-Free Savings Account if they’re 18 years of age or older and have filed a tax return.

The Tax-Free Savings Account will let you invest while not being taxed on the interest earned or investment earnings.

At YNCU, you’ll be able to open Savings Accounts, Guaranteed Investment Certificates (GICs), and Index-Linked Term Deposits.

Unlike an RSP, your contribution to a Tax-Free Savings Account will not be deducted from your income on your tax return, but the interest you earn will not be taxed.

As of 2019, you can contribute a maximum of $6,000 a year

If you take money out of your Tax-Free Savings Account, you don’t lose the contribution room – you get it back in the following year. If you take it out you will have to wait until the next year before you can put the money back in.

If you don’t make the maximum contribution you don’t lose the contribution room. The unused contribution room gets carried over to the following year. There is no limit to how much contribution room can be carried forward.

You can hold more than one Tax-Free Savings Account with a number of financial institutions, but the total contributions must be within your total contribution limit in that year.

Money you take out of your Tax-Free Savings Account will not affect federal income-tested benefits and credits, so you’re not penalized for saving.

Each year, the government will determine your remaining Tax-Free Savings Account contribution limit.

 
 
 

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2024 Your Neighbourhood Credit Union Limited. All rights reserved.

Your Neighbourhood Credit Union (YNCU) is a licensed credit union operating in, and under the laws of, the province of Ontario. Eligible deposits in registered accounts have unlimited coverage through the Financial Services Regulatory Authority (FSRA). Eligible deposits (not in registered accounts) are insured up to $250,000 through the Financial Services Regulatory Authority (FSRA) .

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