New year came and it is time to think about savings. I hope that everyone's resolution for this year is about Saving Money. If you have any cash savings available it is a good time to invest in the Tax Free Savings Account.
The nice thing about the TFSA account it is that any interest earned is tax-free. Money can be taken out anytime from TFSA because it is a savings account. Most of the time TFSA has higher interest rate. But if you do not need TFSA money you can invested in GIC or stocks, and remember any interest you earn is tax-free.
Now who offers the best interest rates.
ING Direct is usually has the best rate. However, I have recently discovered about the Canadian Tire Financial Services. Their TFSA interest rate is whooping 2.75%. Probably subject to change in the future, but they all do that. Note that some institutions also offer higher interest rate on the initial deposit just to get you in. You may want to check out ING Direct and PC Financial as other options.
TFSA Summary: The TFSA account earns guaranteed tax-free interest and gives you the ability to withdraw your money any time.