Tax-Free Savings Account (TFSA)

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 0.50% 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 the Canada Deposit Insurance Corporation (CDIC). All deposits with the Bank are eligible for deposit insurance from CDIC, subject always to coverage limitations as outlined by CDIC. Learn more about Canada Deposit Insurance.
    For further information, visit www.cdic.ca or contact CDIC at 1-800-461-CDIC (2342).

Tax-Free GICs

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.

Contributions:

  • The TFSA contribution limit for 2019 is $6,000 as defined by Canada Revenue Agency (CRA).
  • Unused contribution room can be carried forward indefinitely. The amount you withdraw can be re-contributed to your TFSA in the following year or years without impacting your contribution room.
  • The annual contribution limit from 2009 to 2012 was $5,000; from 2013 to 2014 was $5,500; for 2015 was $10,000; and from 2016 to 2018 was $5,500.

 

Withdrawals:

  • 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  • The amount withdrawn from a Tax-Free account in the current year is added to your contribution room in the next calendar year.

 

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