TORONTO, ONTARIO -- (Marketwired) -- 07/03/13 -- As part of BMO Financial Group's ongoing commitment to financial literacy and 'Making Money Make Sense', BMO is releasing a financial tip every day in the summer to help Canadians make the 'BMOst of summer' in 2013.
'BMOst of Summer' Financial Tip of the Day: Maximize your summer savings potential with a Tax-Free Savings Account (TFSA).
According to BMO Bank of Montreal's annual TFSA Report, fewer than half (44 per cent) of Canadians are making the maximum annual contribution to their TFSA. However, the majority (57 per cent) plan to contribute the maximum allowable amount within the next five years.
"Kick-off your summer savings goals by contributing to your - or opening a new - TFSA and take advantage of tax-sheltered savings and the power of compounded interest," said Janet Peddigrew, Vice President, BMO Bank of Montreal. "TFSAs are powerful investment tools that allow you to enjoy the benefit of tax-free growth, which can help you reach your investment goals faster."
-- Last year, the federal government raised the annual TFSA contribution limit to $5,500.-- Any unused contribution room from the previous year can be added to the contribution room for the current year, and any withdrawals can be re- contributed the following year without affecting the annual contribution limits.-- You can hold the same investments in a TFSA as you can in a Registered Retirement Savings Plan (RRSP), including GICs, bonds, cash, mutual funds and stocks.-- Contributions to TFSAs are not tax deductible; however any income earned, deposits or investments held in a TFSA - through interest, dividends or capital gains - are tax-free.
To learn more about BMO TFSAs, please visit www.bmo.com/home/personal/banking/investments/tax-free/tfsa.
BMO offers a number of products and services that can help Canadians get more out of every dollar they spend this summer. For more details on how to make the 'BMOst of Summer,' drop by a BMO branch or visit www.bmo.com.
About BMO Financial Group
Established in 1817 as Bank of Montreal, BMO Financial Group is a highly-diversified North American financial services organization. With total assets of $555 billion as at April 30, 2013, and more than 46,000 employees, BMO Financial Group provides a broad range of personal and commercial banking, wealth management and investment banking products and solutions.
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