Clearly, Canadians need to brush up on the benefits of Tax Free Savings Accounts (TFSAs) and how they work.
A recent survey by ING DIRECT finds many Canadians don't understand the rules of TFSAs. According to an Angus Reid Public Opinion poll commissioned by the bank, 23 per cent of Canadians believe their bank is responsible for tracking their TFSA contributions and withdrawals. Another 12 per cent think it's the responsibility of the government, while 7 per cent say their adviser is responsible for keeping track of TFSA transactions.
Moreover, Canadians only have a vague idea (37 per cent) or don't understand how TFSAs work (14 per cent), while 13 per cent don't know what a TFSA is.
"The Tax Free Savings Account is an invaluable tool when it comes to saving money for the future, but unfortunately many Canadians are unclear about the rules," says Peter Aceto, president and CEO of ING DIRECT Canada in Toronto. "One of the beauties of TFSAs is they're pretty simple. Yet, it seems muchRead More »from Clear the fog: TFSA dos and don'ts