Tangerine TFSA Kick Start Account #‎TangerineTFSA‬

I think we are all aware that our economy has been in a slump these last few years. For me, as I am sure it is for most of you, it is more important than ever to make every nickel of our hard-earned dollars count.

I’m not sure if you were aware of this, I wasn’t, but for over half a decade Tangerine Bank has offered clients the TFSA Kick Start Account. The intent of this account is to help Canadians that have reached their TFSA contribution limit to save more.

What is a Tangerine TFSA Kick Start Account:

Under current legislation, the amount Canadians can save in a Tax-Free Savings Account (TFSA) is now increased to $10,000 each year. This means that $10,000 in tax-free savings is now available as of January 1, 2015, followed by another $10,000 of contribution room for 2016.

If your TFSA is already at its maximum for 2015, even with this new contribution room, and you’re patient, you can contribute more in January 2016. But what if you don’t want to wait? Good news – you don’t have to.

You can sign up now for a 2016 TFSA Kick Start Account and start saving for your 2016 TFSA contribution today!

Earn double your interest until December 31^st.
Earn Tax-Free interest starting in January 2016

How a Tangerine TFSA Kick Start Account works:

When you open a 2016 TFSA Kick Start Account you will earn 1.05% interest on the money you save there. The TFSA Kick Start Account is not a registered tax-free savings account, but will enable you to put money aside for your 2016 TFSA contribution. Here’s what will happen:

On January 1, 2016, they will take the total amount of interest you’ve earned in your TFSA Kick Start Account, and give you a Bonus matching that amount! Since the most you can put in a TFSA for the year – without getting penalized – is $10,000, any interest you earn that puts your Kick Start Account balance above $10,000 will be deposited into your Tangerine Savings Account. {If you don’t already have a Tangerine Savings Account, they will open one up for you automatically.}
On January 1, 2016, they will deposit the 2016 contribution saved up in your 2016 TFSA Kick Start Account (up to $10,000) into your Tangerine Tax-Free Savings Account, registered with the Canada Revenue Agency.

Remember, the money you deposit into your TFSA Kick Start Account will go towards your 2016 TFSA contribution. It will be kept separate from your current TFSA until January 1, 2016 to make sure it doesn’t get counted as a 2015 contribution.

To be completely honest, we don’t presently have a TFSA Kick Start Account. However, after doing research for this post, my husband and I have talked about it, and we are definitely setting up a meeting with a Tangerine representative to discuss our options.

Were you aware of the TFSA Kick Start Account program?

Is this is something you may look into setting up?