News Releases
TORONTO, October 12, 2010 – BMO Bank of Montreal announced today that its Tax-Free Savings Account (TFSA) will now offer a 1.75 per cent interest rate on cash savings — the highest among the big five Canadian banks.
The BMO TFSA allows Canadians to save and invest up to $5,000 a year in a tax-sheltered account, allowing investors the opportunity to reach their savings goals faster as deposits grow more quickly through tax-free compounding.
“When saving for the short or long term, it's important that Canadians take advantage of tax-friendly options wherever possible,” says David Heatherly, Vice President, Payment Products, BMO Bank of
With the recent market uncertainty, Canadians are looking for a way to hold on to more of their money. The tax-free growth of money in a TFSA makes it easy for investors to keep more of their money.
The new rate was announced in tandem with the launch of BMO SmartSteps� for Investing, a program designed to help Canadians make sense of savings and investing and help them keep more of their money, stay on track with their investments, and grow their money for the future.
“There are numerous advantages to opening a TFSA, but we're finding that a majority of people remain unclear about the benefits of TFSAs and how they fit into their overall financial strategy,” says Tina Di Vito, Director, Retirement Strategies, BMO Financial Group. “If you're unsure, seek out the advice of a financial planning professional at your local branch.”
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- TFSAs are ideal when saving for travel, home renovations or retirement, because there are no tax implications upon the withdrawal of funds.
- Don't let the annual $5,000 TFSA cap deter you. Any unused contribution room in a TFSA can be carried forward from one year to the next.
- In addition to cash savings, TFSAs can hold a variety of other investments, including mutual funds, GICs and securities. BMO recommends visiting a BMO branch and meeting with a financial advisor who can help you determine which type of TFSA best suits your needs.
To learn more about BMO SmartSteps for Investing, please visit www.bmo.com/smartinvesting.
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For media inquiries please contact:
Matthew Duffin,
Sarah Bensadoun, Montreal, 514-877-8224, sarah.bensadoun@bmo.com