Tax-Free Savings Account (TFSA)

There are three things you need to open a TFSA and start making contributions:

• You need to be a resident of Canada.
• You need to be at least 18 years old.
• You need to have a valid social insurance number.

It depends on how old you are. You gain contribution room for every year that you’re over 18 and a resident of Canada. Canadians first earned TFSA contribution room in 2009, and the amount of contribution room you gain can change from one year to the next. Log in to the Canada Revenue Agency website or call 1.800.267.6999 to find out how much TFSA contribution room you have available.

No. Any contribution room you gain can be carried forward for as many years as you need to catch up on it. The additional room you gain each year is added to your total available contribution room. Unlike with RRSPs, you gain TFSA room every year even if you don’t file a tax return or earn an income that year.  

There’s no easy way to say it – you’ll be taxed. There’s a 1% monthly tax on any amount that exceeds your TFSA contribution limit. The 1% is charged each month until you withdraw the excess contributions, or until the end of the year when they’re absorbed by the additional contribution room you gain. The government will let you know if you over-contribute, but it’s a good idea to keep track yourself so it doesn’t happen.

Take a look at our TFSA calculator for a better sense of what you’ll need to reach your saving goals.

Real safe. Just like an Alpha Guarantee Bank savings account, the deposits you make into a TFSA are fully guaranteed by the Credit Union Deposit Guarantee Corporation, and that means your money isn’t going anywhere.

It’s easy! If you’re already a member, simply sign-on to your online banking and select the ‘Open New Products’ option. Follow the steps and you’ll be on your way to a brand new TFSA savings account in no time. Take the guesswork out of investing for you by setting up pre-authorized payments. You’ll be amazed on how quickly your investment grows without any work on your part!

Not a member? Drop by an advice centre any time during business hours and we’ll get you signed up for a membership and a TFSA on the spot – no appointment needed. If you know when you’ll be coming by, contact us so we can really roll out the red carpet. If you’d rather skip a trip to our advice centre, open an account online or on the phone through our Contact Centre, right now, from wherever you are! Call us at info@alphaguarantees.com to open the account that best suits your needs.

Absolutely! Just log into your online banking and click on ‘Product Renewals’ on the left tool bar. If any of your products are up for renewal, they will appear here. Simply click the ‘Renew’ button and you’ll be given a renewal option of either ‘Payout to selected product’ or ‘Reinvest in new product’. Then click ‘Confirm’. Please note that some products may not be available online. You also have the option of renewing your investments in an advice centre or by calling the Contact Centre at info@alphaguarantees.com.