Pres. choice tfsa account

[airmail]

Tax-Free Interest Plus™ savings account
apply today, contribute Jan. 1, 2009!
watch your savings grow tax-free with a high interest rate account!
daily balance annual rate (%)
$0 - $1,000.00 3.75
$1,000.01 and up 3.75

Interest is calculated on each day’s closing balance and is paid into your account monthly.

anniversary bonus interest
average annual balance annual rate (%)
account anniversary (yrs)
1 2 3 > 3
$1,000.01 - $10,000.00 0.03 0.04 0.05 0.06
$10,000.01 - $50,000.00 0.05 0.08 0.10 0.15
$50,000.01 - $100,000.00 0.08 0.10 0.15 0.20
$100,000.01 - and up 0.10 0.15 0.20 0.25

[rilhouse]

I'll be opening up a account for sure. I am surprised that they are offering 3.75% as there regular high interest savings is only 3.05%.

[AllWheelDrift]

PCF was already at or near the top of my list for a TFSA.

I'm just worried about bait and switch tactics with these TFSA accounts (not just PCF), i.e. dropping the interest rate after depositing.

The problem is if you withdraw (to move your money because they dropped the rate) you have to wait until the next year until you get the contribution room back, or if you can do a "switch" to another institution without withdrawing, they will probably hit you with transfer fees.

[AllWheelDrift]

I'll be opening up a account for sure. I am surprised that they are offering 3.75% as there regular high interest savings is only 3.05%.
Well, the regular high interest savings is paying 3.75% on new deposits. Exactly the kind of games I'm worried they'll play with the TFSA where it's harder to move your money around.

[rilhouse]

Just opened up an account online, that was easy. Too bad you can't deposit $ until Jan 1, I'd rather be earning 3.75% now, tax free or not.

[exstasie]

Just opened up an account online, that was easy. Too bad you can't deposit $ until Jan 1, I'd rather be earning 3.75% now, tax free or not.

I tried yesterday, and tried again today but it won't let me register online.

I must be flagged or something lol

[sklm]

Already posted: http://www.redflagdeals.com/forums/showthread.php?t=663682

[angel_wing0]

Already posted: http://www.redflagdeals.com/forums/showthread.php?t=663682

indeed.

Well there is nothing special about it for now.

[Thalo]

The smart tactic is to offer a temporary rate bonus, to entice people to open a TFSA. Once it's opened, they pretty much got you because it's too much of a hassle to move the TFSA to another institution or to have multiple TFSAs.

[angel_wing0]

The smart tactic is to offer a temporary rate bonus, to entice people to open a TFSA. Once it's opened, they pretty much got you because it's too much of a hassle to move the TFSA to another institution or to have multiple TFSAs.

like ing...good thing i didnt bite :lol:

[sonypcs]

Here is a suggestion...I am NOT bashing people to open up a TFSA so Dont be mad !!!

I was wondering why you all are going to the bank or doing that online on opening a TFSA account which pays you only 3 or 4 % interest ? Do you think this TFSA should be use on buying ETF's, stocks or mutual funds that pays you the HIGHEST percetage of return in order to get those CAP GAINS TAX FREE ?

Lets say you put $ 5,000 in this TFSA working with 3.5 % interest, your return is only $ 190 - 200.00 / year from that and only that amount is tax free.

If your tax bracket is LOW enough, the benefit of putting this money into TFSA means you wont receive a T5 to report to CRA only...

Lets say if your tax bracket is 30 %, the benefit of putting this money into TFSA means you wont receive a T5 (which you will be paying $ 60 of taxes to the CRA supposed) and you benefited only that interest earned.

If I put into a Canadian Equity ETF or lets say a Bank Lovers stock like (TD Bank)..With 100 shares = $ 4,500..What I will be getting if POSSIBLE CAPITAL GAINS and Dividend TAX FREE.. and if I do this every year, I would be able shelter this apperciation and dividend in the long run and it creates wealth better than 3.5 or 4 % savings account...

Please remember you have to factor INFLATION into your return on your money too...Everyone says gas is cheap, oil is cheap so we are deflating..but who knows when will this be finished ...

My view --> I believe 2% inflation should be factored in with any return of money every year. That means 3.5 % savings account means 1.5 % FINAL RETURN after inflation...

If you think I am BSing...look at Macdonald's...Big Mac Combo is going from $ 3.99 plus 7 % Tax 4 years ago and its now $ 5.99 Plus 13 % Tax in 2008...

[rilhouse]

Here is a suggestion...I am NOT bashing people to open up a TFSA so Dont be mad !!!

I was wondering why you all are going to the bank or doing that online on opening a TFSA account which pays you only 3 or 4 % interest ? Do you think this TFSA should be use on buying ETF's, stocks or mutual funds that pays you the HIGHEST percetage of return in order to get those CAP GAINS TAX FREE ?



sure there is ways to invest to earn higher interest but the advantage of a savings account is immediate access to the $ and 0 risk. you can't get those with ETF's, stocks or mutual funds.

[exstasie]

Here is a suggestion...I am NOT bashing people to open up a TFSA so Dont be mad !!!

I was wondering why you all are going to the bank or doing that online on opening a TFSA account which pays you only 3 or 4 % interest ? Do you think this TFSA should be use on buying ETF's, stocks or mutual funds that pays you the HIGHEST percetage of return in order to get those CAP GAINS TAX FREE ?

Lets say you put $ 5,000 in this TFSA working with 3.5 % interest, your return is only $ 190 - 200.00 / year from that and only that amount is tax free.

If your tax bracket is LOW enough, the benefit of putting this money into TFSA means you wont receive a T5 to report to CRA only...

Lets say if your tax bracket is 30 %, the benefit of putting this money into TFSA means you wont receive a T5 (which you will be paying $ 60 of taxes to the CRA supposed) and you benefited only that interest earned.

If I put into a Canadian Equity ETF or lets say a Bank Lovers stock like (TD Bank)..With 100 shares = $ 4,500..What I will be getting if POSSIBLE CAPITAL GAINS and Dividend TAX FREE.. and if I do this every year, I would be able shelter this apperciation and dividend in the long run and it creates wealth better than 3.5 or 4 % savings account...

Please remember you have to factor INFLATION into your return on your money too...Everyone says gas is cheap, oil is cheap so we are deflating..but who knows when will this be finished ...

My view --> I believe 2% inflation should be factored in with any return of money every year. That means 3.5 % savings account means 1.5 % FINAL RETURN after inflation...

If you think I am BSing...look at Macdonald's...Big Mac Combo is going from $ 3.99 plus 7 % Tax 4 years ago and its now $ 5.99 Plus 13 % Tax in 2008...

I agree with you 100%.

However the TFSA account at President's Choice will essentially be my account for day-to-day spending/savings. I currently just keep extra cash in my current High-Interest Savings account (Between $1,000-$2,000). having it tax-free still saves some extra tax money. I'm not the only one who doesn't want to be taxed on EVERYTHING lol

I've been talking with TradeFreedom as well and will opening my TFSA with them as soon as I can.

Because who wouldn't want $5,000 of tax-free investments?