Tax-Free Savings Account and Tax-Free GICs
A new way to save
Tax-Free Savings Account and Tax-Free GICs are registered accounts offered to any Canadian resident who is 18 years of age or older and has a valid Social Insurance Number. Investment income in these accounts will grow tax-free.
Tax-Free Savings Account (TFSA)
To give you flexibility when you don’t want to lock in your funds for a fixed term or interest rate, a TFSA is the ideal solution. You also receive your interest credited monthly.
- High Interest Rate: Earn 1.35% p.a. interest. Interest is calculated daily and paid monthly.
- No Fees: Keep all of your money. There are no monthly or annual administration fees, so you can watch your money grow faster.
- Flexible: No minimum balance.
- Convenient Banking: You may do your banking online or by phone at your convenience
- Safe and Secure: ICICI Bank Canada is a member of CDIC. Only deposits held in Canadian currency, having a term of five years or less and payable in Canada are insurable under the Canada Deposit Insurance Corporation Act.
Tax-Free GIC is the right choice when you want to invest at a guaranteed interest rate for a fixed term. Nothing to worry about.
- Attractive Interest Rates: Highly competitive interest rates. Interest is compounded annually and paid at maturity.
- Guaranteed Return: The interest rate is guaranteed for the term of the deposit.
- Low Minimum Investment: You don't need a lot to invest. Only a minimum of C$1,000 is required to open a Tax-Free GIC account.
- Various Terms: Invest for the term of your choice - from 1 to 5 years.
- The TFSA contribution limit for 2016 is $5,5001
- Unused contribution room can be carried forward indefinitely2.
- The annual contribution limit from 2009 to 2012 was $5,000; from 2013 to 2014 was $5,500 and for 2015 at $10,000.
1 Under proposed legislation, starting January 1, 2016, the annual TFSA dollar limit for 2016 will decrease from $10,000 to $5,500.00. The TFSA annual room limit will be indexed to inflation and rounded to the nearest $500
2The amount you withdraw can be re-contributed to your TFSA in the following year or years without impacting your contribution room.
- Interest income on eligible amounts is not subject to tax on withdrawal.
- The amount withdrawn from a Tax-Free account in the current year is added to your contribution room in the next calender year.