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- The new Macbook Wheel - no keyboard!
- The new Macbook Wheel - no keyboard!
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A survey said that half of Canadians weren’t planning on getting a Tax Free Savings Account (TFSA) when they became available this week, and mostly because they don’t know about them!
I only just heard about them in the past few weeks - basically the Canadian gov’t has launched a new flexible savings account where you don’t have to pay taxes on the interest. You get a deposit room of $5000 a year, and if you don’t use it, or spend it, you can redeposit that same amount the next year, and pay no taxes on the interest!
I thought it was particularly well suited to students living on OSAP, as you do one bulk payment a year, and then wittle away at it bit by bit until the next payment. The first year you might not be able to deposit all of it, but the next year there is room for $10,000 - $15,000 the next. And there is no penalty for transferring amounts from your account to your spouse’s.
It does get a bit tricky to use it as a regular savings account, as if you make a withdrawal the difference is added to next years room. So, putting in $5000 in January, spending it and putting in another $5000 in March would have penalty taxes :S The penalty taxes are 1% a month on what you over deposited, not just the interest which adds up fast.
So anyway, it looks neat, and at my bank the interest rate is higher than a regular savings account, which is okay by me!
More info:
Official info from the gov’t
Investor’s group poll from October - 1/2 of Canadians won’t use TFSA
Hope that wasn’t too boring for y’all :p
December 30, 2008
December 29, 2008 - sharing something that i’m not subscritbed to??
December 15, 2008
June 23, 2008 - After reading this review, I feel that I don’t have to read the book.
December 17, 2007