Tax Free Savings Account

If you are above 18 years of age and live in Kitchener, Waterloo, Cambridge and Guelph, Canada, you can invest in tax-free savings account up to an amount of $5500 per year. It is not a question that whether you need those savings next year or later in future, by investing here you can easily save your savings tax-free!

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Registered Retirement Savings Plan RRSP & Tax Free Savings Account TFSA

It’s true that when there are so many demands on your pay check sometimes it may seem tough to save money. However, if you look at the different programs designed by the Canadian government you can find that there are ways by which you can save taxes while you find that your money is working for your future. Registered Retirement savings Plans (RRSP) and Tax-Free Savings Plan (TFSA) are two such options. Let’s find out in details about them.

Registered Retirement Savings Plan

RRSP is a personal savings account that provides you certain special tax advantages. There are a variety of investments that qualifies as RRSP like the mutual funds, treasury bills, guaranteed interest products, bonds and equities and segregated fund contacts.

An RRSP is considered as a power tax saving instrument as when you contribute to them they are tax deductible. Apart from that, the taxes on any investment growth are also deferred till you actually take out the money from the funds. When you get tax-deductible contribution you can have more funds in your hands for meeting your current needs while you are saving for your future. It is a way that keeps your money works out for your future.

When you take out the fund from RRSP, the amount withdrawn will be taxed at the tax rate that prevails at that moment. If you start withdrawing them after your retirement the tax rates will be much lower.

It is best to contribute to RRSP if you

  • Are looking to reinvest the tax savings you have.
  • You are planning to save money for your retirement.
  • You want to save your tax savings fir paying off your debts.

Tax Free Savings Account

If you are above 18 years of age and live in Kitchener, Waterloo, Cambridge and Guelph, Canada, you can invest in tax-free savings account up to an amount of $5500 per year. It is not a question that whether you need those savings next year or later in future, by investing here you can easily save your savings tax free!