Blogs & Comment

Tax free saving account (TFSA)

Note to self: open an ING Direct tax free saving account (TFSA). It gives you tax-free interest starting Oct. 4. You can pre-register for a TFSA at other institutions but, as far as I know, they dont offer the tax-free status until 2009.
True, TFSA accounts legally cannot offer tax-free saving until 2009 but ING Direct will pay bonus interest equal to the interest your account earns between Oct. 4 and December 31, which will be more than enough to cover taxes, they say.
I found out earlier this week about the offer when ING Direct mailed me a circular (I have an account with them). I dont want to sound like an ad for them, but their savings account has always been one of the better paying ones (government insured and with no account fees) and comes with the convenience of an electronic link to my Canadian bank account and online broker. So, its a no brainer for me to sign up for their TFSA.
Some of the financial institutions taking pre-registrations for TFSA accounts require visiting a local branch or calling an 800 number. ING Canada offers the convenience of registering online at http://www.hugthetaxman.ca/(like the address name — ING Direct always keeps things humorous, another thing I like about them).
Looking at the site now, I see they make it even easier for ING Direct customers like me to sign up. Hey, let me do it now. there done! Took about 7 clicks of the mouse and a minute . cross it off the list of things to do.