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Email this2:57 am
May 15, 2007
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http://www.ingdirect.ca/en/sav.....index.html
In a nutshell, by having ING Direct be your Tax Free Savings Account source in 2009 (when the TFSA starts), you can earn 6% in interest from now until the end of 2008. Since a TFSA is up to $5,000 in a year, you are earning up to an extra $37.50 in interest ($5,000 * 0.03 / 4) (since there's only a quarter of the year left).
5:07 am
is there a limit, or is the max you can deposit is $5000?
10:46 am
May 15, 2007
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"Starting in 2009, Canadians aged 18 and older can save up to $5,000 every year in a TFSA."
You can find full details on the Department of Finance page.
9:23 am
Sounds to me like you can save $5000 for every year this plan is in effect (i.e. $5000 in 2009, another $5000 in 2010, etc.). One of my concerns was that it would be difficult to get the money out of the ING account and put it in another Tax-Free Savings Account somewhere else later on (either a mutual fund account or something at another bank), without losing that $5000 contribution room, but it looks like that's not going to be a problem either.
Another page with information on it is located here at the Canada Revenue Agency:
http://www.cra-arc.gc.ca/gncy/.....r-eng.html
At this point the page is just a FAQ but since the CRA handles personal taxes in Canada, I'm assuming it's going to become a more detailed and informative page once the real TFSAs come into existence in January.
ING is basically saying that if you start your TFSA saving early, they'll pay you the interest you would have earned if you had the actual TFSA account already. For those of us who have lower annual incomes and therefore pay lower taxes on our income, ING is giving us a nice bonus. Basically this amounts to some of those high-interest account opening bonuses we were seeing a while back from the online banks. I didn't expect to see many of them again this fall, what with the economy being what it is.
1:22 pm
Here it goes.
My 5000$ is in their hands since yesterday.
11:38 pm
By the way, just so you know, the rate is not fixed at 3%. It is tied to the ING ISA account rate which may go up or down.
12:42 pm
If anyone is interested in opening the account sign-up at: http://www.ingdirect.ca/en/ISAfriends enter reference Orange Key ---- edit: sorry, no referral codes allowed ---- There is a $13 bonus to sign up. ING will double your interest from now until Dec 31/08. ING also gives a X-MAS bonus.
Peter said:
http://www.ingdirect.ca/en/sav.....index.html
In a nutshell, by having ING Direct be your Tax Free Savings Account source in 2009 (when the TFSA starts), you can earn 6% in interest from now until the end of 2008. Since a TFSA is up to $5,000 in a year, you are earning up to an extra $37.50 in interest ($5,000 * 0.03 / 4) (since there's only a quarter of the year left).
1:17 pm
What about all the interest we will have accumulated till the end of the year?
It won't be able to reinvest it in the Tax-Free savings account because it will crush the 5000$ maximum limit. I guess they will just deposit all the interest in our normal acocunts or is it our responsibility to do so?
12:47 pm
But wait - today I signed up for the ING Tax Savings acct, and even though their website advertises 3% interest, at the end of the signing up, just before you say your final "yes go", they tell you that it is only 2.7%. That seems like false advertising I think. I'll leave my money there til the end of the year, but if they don't clean up their act, it will be moving early 2009.
11:09 am
Isabel Haney said:
But wait - today I signed up for the ING Tax Savings acct, and even though their website advertises 3% interest, at the end of the signing up, just before you say your final "yes go", they tell you that it is only 2.7%. That seems like false advertising I think. I'll leave my money there til the end of the year, but if they don't clean up their act, it will be moving early 2009.
Same for me. As soon as I get my 5.4% interests deposited I transfer back all my money out from ING.
10:35 pm
I don't believe that is possible. Once you signed up, you comitted yourself with them for the TFSA. You may be able to lock it in to a term there for a better rate, but other than that, you are stuck. You could perhaps cash it in, but then you would not be able to contribute your $5000 anywhere else for a year. Sorry to say, but that was the risk you took when you signed up.
8:00 am
I don't care to not contribute my 5000$ anywhere else because I don't pay taxes at the end of the year, I'm a student 😉
I just signed for the no-tax savings account with ING because of the 6% till January.
3:12 pm
"I don't believe that is possible. Once you signed up, you comitted yourself with them for the TFSA."
Not true. It is possible to transfer a TFSA from one financial institution to another, WITHOUT penalty. I know that both ING and Manulife have a "Transfer Authorization" form for a TFSA (it's the same form you would use for transferring an RRSP from one bank to another).
9:23 pm
December 12, 2009
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Robin,
The term "without penalty" with regards to an inter-bank transfer of an individual's TFSA means you will not be penalized in terms of losing your contribution room for the year. It's not done as a withdrawal but a transfer, as allowed by the CRA and legislation. The financial institution may still, and likely will, charge a fee to transfer a TFSA as there is a lot of paperwork involved much like transferring an RRSP. It's generally a $25 to $50 service charge.
Cheers,
Doug
8:10 am
November 26, 2008
Offline
And I think we'll have to wait a lot of time to see our 25$ or 50$ caught back with a 0.3% or 0.5% higher interest rate. I think I'm better to stay with ING. Even renewed by RRSP this year. They had automatically renewed at 2.0% for 1 year. Had to call them back and make them set it as a 1 1/2 year 3.20% one. It's less attractive than the 4.5% I managed to lock last yeard 🙁
This is an economic period where you would prefer be in 100,000$ depts instead of having 100,000$ of savings to invest.
The day you become free is the day you work for fun.
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