Talking About Financial Matters That Affect You and Your Organization

Healthy Finances - Ways to Save

Posted by John V. Sabourin

Nov 26th, 2018

Healthy Finances - Ways to Save

Knowing financial lingo can help you make good financial decisions. Read on to see TFSAs decoded and find out how they can help you save.

TFSAs explained

Created by the federal government in 2009, Tax-Free Savings Accounts (TFSAs) can contain investments such as cash, GICs, mutual funds, segregated funds, stocks and bonds. You don’t get a tax deduction on your contributions like you would with an RRSP, but whatever you earn in a TFSA is tax-free.

The benefits

  • No tax on earnings: Any income, capital gains and dividends you earn in a TFSA are yours – you won’t be taxed on what you earn.
  • No penalties for withdrawals: You can take your money out whenever you need it (subject to the type of investment you’ve made), which is good if you need access to your money quickly. Plus, any withdrawals will be added back to your contribution room in the following year.
  • You can carry it over year-to-year: Any unused contribution room can be used in future years.
  • No upper age limit on contributions: You can keep contributing well into your 70s and 80s, unlike your RRSP.
  • It won’t impact federal income-tested benefits: Anything you earn or withdraw from your TFSA isn’t taxable and won’t impact Old Age Security, the Guaranteed Income Supplement or the Canada Child Tax Benefit.

Want more details about TFSAs and how to start saving? Check out Manulife Bank TFSAs.

Healthy Finances - Ways to Save

Corporate Office - London

310-700 Richmond Street
London, ON N6A 5C7

Tel: (519) 675-1177

Toll-Free: (888) 327-5777



200-429 Exmouth Street
Sarnia, ON N7T 5P1

Tel: (519) 337-0807

Toll-Free: (877) 822-1522



305-1949 Upper Water Street

Halifax, NS B3J3N3

Tel: (902) 797-1391

Toll-Free: (833) 832-2230


Saint John

190-17 Canterbury Street

Saint John, NB E2L2C3

Tel: (506) 638-6549

Toll-Free: (833) 832-2230



Belle River, Ontario

1303 Essex County Road 22, Unit 303, N0R 1A0

Financial Tel: (519) 258-5510

Employee Benefits Tel: (519) 419-5515



1464 Cornwall Road, Unit 1

Oakville ON L6J 7W5

Tel: (866) 940-3777