TFSA contribution limit increasing to $6,000 in 2019
The new limit, announced at the end of November, means more savings options for Canadians.
Since the government’s introduction of the Tax Free Savings Account in 2009, there have been few changes to the program. The inaugural year saw a limit of $5,000 and it stayed that way until 2013 when the additional $500 was added. TFSA limits stayed stagnant save the $10,000 promotional year in 2015.
This new limit means that for those who’ve never contributed to a TFSA before, and who were of age since the program’s inception, could potentially have a contribution total of $63,500 by January 1st.
The ability to withdraw funds as needed is one of the biggest advantages of a TFSA. Withdrawing money from your TFSA doesn’t count as “income” so it doesn’t affect your annual taxes or other benefits and pensions. So yes – you can withdraw from your TFSA at any time but it’s far more beneficial to let interest build by saving long term.
Limits are easy to track for members with only one TFSA account – but if you have more than one, you need to be aware of your limits based on the total amount.
If you don’t currently have a TFSA, you can open one with AcceleRate Financial and contribute a maximum of $57,500 in 2018 and $63,500 in 2019.
If you have never withdrawn money from a TFSA account, you can keep adding until you hit the current TFSA limit. If you’ve withdrawn money from a TFSA in the past, you can earn that room back the following year.
If you have more than one TFSA, be aware of your limits as they are based on the total amount.
How can I take advantage of this increase?
AcceleRate Financial offers competitive TFSA investment terms. Interest is paid or compounded annually. Visit our rates page for more information.
A History of the TFSA Limits
Convenient deposits via Interac e-Transfer® Autodeposit
Convenient deposits via the new Interac e-Transfer® Autodeposit feature
This December, we released two new Interac e-transfer® features on our online banking platform, which is hosted by our parent company, Crosstown Civic Credit Union.
The feature most relevant to our AcceleRate Financial members is called “Autodeposit.” Autodeposit is a secure way to receive money without having to answer security questions for every transaction. This will allow you transfer funds from your other financial institution into your AcceleRate Financial account more conveniently.
Here’s how it works:
- Simply link your email address to your AcceleRate Financial bank account via Crosstown Civic Credit Union online banking or mobile app.
- Select “Autodeposit,” enter your email address, and select the bank account you want associated with Autodeposit.
- When an Interac e-Transfer® is sent to you, the payment will automatically be deposited into your bank account associated with that email address – no need to select the financial Institution, login to online banking and answer a security question!
- You will receive a notification that funds were deposited.
Money being sent to a recipient registered for Autodeposit will take the same time as a regular Interac e-Transfer® transaction – i.e. from instant to within 30 minutes.
Interac e-Transfer feels will apply to these transactions.
For more details, please visit Interac’s Autodeposit page.
Introducing the new AcceleRate Financial online experience
We are pleased to invite you to the new AcceleRate Financial online experience!
AcceleRate Financial is a virtual division of Crosstown Civic Credit Union. It was launched in May 2010 with the mandate to deliver high investment interest rates, regardless of available funds to invest. While AcceleRate is primarily a self-serve investment platform, our exceptional member service has earned praise from our members and throughout investment communities.