Variable TFSA: Callable
This account functions like a regular savings account where you can deposit up to $5000 and withdraw funds as you please. It is an ideal account for those who wish to set up weekly, bi-weekly, semi-monthly or monthly transfers to help save on a regular basis.
Fixed TFSA: Non-callable
You may invest your TFSA for a 1, 2 or 3 year term for a guaranteed interest rate. Fixed-rate TFSAs earn interest annually or at maturity and the interest may be deposited to a savings account or added to the principle of the TFSA.
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Note: TFSAs are available for people 18 years of age and older. The government allows an annual maximum deposit of $5,000. It is your responsibility to make sure that you do not go over this annual deposit amount. You may however carry forward any unused amount to the following calendar year. An example of this is as follows:
If you deposit a total of $3,000 to all combined TFSAs in 2009, you may deposit your next maximum of $5,000 in 2010 plus the $2,000 left over from 2009. The amounts you deposit to your TFSA will NOT be deducted from your income, however all of the interest you earn on your TFSA will not be taxed as interest income either. For more government rules on TFSAs see www.tfsa.gc.ca.