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Tax-Free Savings Account (TFSA)

Grow your money, tax-free

APPLY FOR A TFSA
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A Tax-Free Savings Account (TFSA) is an ideal way to make the most of your money. Contributions to a TFSA are made with after-tax dollars, but investment income and withdrawals from the account are not taxed. That means you can earn interest on your investments, grow your savings tax-free, and withdraw funds when you need them.

Start saving more at a great rate of 2.75%1,2.

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Motive® TFSA GIC

You can save for something adventurous while investing cautiously with a guaranteed investment certificate. Tax free!

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1Interest is calculated on the daily closing balance at the applicable rate tier and paid on the last day of the month, for the period beginning on the last day of the previous month and ending on the second last day of the month.
2Interest will accrue on deposited funds as of the date funds are deposited. Interest rates and rate tiers are subject to change without notice. Interest is paid in the currency of the account.

TFSA FAQs

What is a Tax-Free Savings Account (TFSA)?
A TFSA is a registered account that allows taxpayers to earn interest, investment income and capital gains tax-free. A TFSA can be a faster way to save for a family vacation, home renovation, your retirement, your children's education or other needs such as a new car. Visit the CRA website to learn more.
Who can open a TFSA at Motive?
Canadian residents (excluding residents of Quebec) of the age of majority in their province or territory of residence can open a Motive TFSA. Visit the CRA website to learn more.
How is a TFSA different from a RRSP?
   TFSA  RRSP
 Contribution - minimum age  18*  N/A*
Contribution - maximum age
 N/A  71
Carry-forward of unused contribution room 
 Yes  Yes
Over-contribution penalty 
 Yes Yes
 Tax-deduction for contributions 

 1% per month 

 1% per month 
Taxation on withdrawals
  No Yes 
Impact of withdrawals   No**  Yes
*Motive products are only available to Canadian residents of the age of majority in their province of residence.
**Amounts withdrawn in the current year cannot be re-contributed until the following calendar year.

How do I open a Motive TFSA?

Contributions can be made in any of the following 4 ways:

By cheque: Complete the TFSA Additional Investments/Renewals/Withdrawals for Existing TFSA Contracts form, print it, sign page one and mail it to us with your cheque.

From your Motive Savings or Motive Chequing Account: You can contribute using funds from your Motive Savings or Motive Chequing Account to a new Motive TFSA by calling us. To set up a regular transfer from your Motive Savings or Motive Chequing Account into your TFSA, call us or complete the Recurring Transfer and Overdraft Coverage Authorization form, print, sign and mail it to us.

Recurring transfers from your chequing or savings account at another Financial Institution: Complete an Electronic Funds Transfer Agreement, attach a void cheque and mail or fax it to us.

Transfer from your TFSA at another financial institution: Complete the TFSA Additional Investments/Renewals/Withdrawals for Existing TFSA Contracts form, print it, sign pages one and three and mail it to us along with a recent TFSA statement. Motive TFSA deposits and interest rates will be value dated for the date the funds are received at Motive Financial. For Motive TFSA GICs, a deposit acknowledgement will be sent to your mailing address within 5 to 7 business days.

How much can I contribute?
The Canada Revenue Agency (CRA) will track your contribution room. CRA reports this amount to individuals through the "My Account" function on the CRA website. The contribution limit is indexed to inflation, meaning it will rise with the cost of living. TFSA contributions are not tax deductible nor is any interest on money borrowed to invest in a TFSA.
What happens if I over-contribute
Similar to an RRSP, you will be charged an over-contribution penalty of 1% per month by Canada Revenue Agency (CRA) on your excess contribution amount. The maximum contribution room is set per person not per TFSA. Visit the CRA website to learn more.
Can I open a joint TFSA?
No. Similar to RRSPs, only individual TFSAs can be opened.

CDIC logo

Motive Financial is a trade name of Canadian Western Bank, which is a member of CDIC. Deposits made under Motive Financial and Canadian Western Bank are aggregately eligible for CDIC protection up to $100,000 per category, per depositor.

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