BMO Gives Canadians an Extra TFSA Jump Start in 2013: Offers
Market-Leading Special Rate on TFSA Savings Account
- BMO offers a special 2.25 per cent interest rate on net new
deposits to a TFSA Savings Account until April 30th
- According to the BMO Annual TFSA Report, the majority of Canadian
TFSA holders plan to contribute the maximum allowable amount within
the next five years
- The most common TFSA investment is cash savings, with the majority
of Canadians holding cash savings within their TFSA
TORONTO, ONTARIO -- (Marketwire) -- 01/15/13 -- As Canadians ring in
the New Year with an additional $500 of Tax Free Savings Account
(TFSA) contribution room, BMO is also offering more incentive for
those looking to use the popular savings and investment vehicle.
Until April 30th, 2013, BMO is offering a 2.25 per cent interest rate
on net new deposits to a BMO TFSA Savings Account - the highest rate
currently offered by a major financial institution in Canada.
"In 2013, while it's important that Canadian households focus on
reducing their debt loads - currently at record highs - it is also
important to continue to save for their future financial goals," said
Domenic Gallippi, Head, Term Investments, BMO Bank of Montreal. "With
this market-leading rate, we want to encourage Canadians to take
advantage of this fantastic savings vehicle and ultimately grow their
savings in 2013."
According to the BMO Annual TFSA Report, fewer than half (44 per
cent) of Canadians are making the maximum annual contribution to
their Tax-Free Savings Account (TFSA), but the majority (57 per cent)
plan to contribute the maximum allowable amount within the next five
years. For 2012, the report showed Canadians planned to contribute an
average of $3,778 to their TFSA.
"Contributing to a TFSA is a sensible option for all savers and
investors," said Mr. Gallippi. "TFSA plans give Canadians flexibility
for short and long term financial goals."
Furthermore, the report revealed that since its introduction in 2009,
39 per cent of Canadians have opened a TFSA. The most common TFSA
investment is cash savings, with the majority (60 per cent) including
cash in their TFSA. Mutual Funds and Guaranteed Investment
Certificates (GICs) are the second most popular TFSA investment
with one quarter (26 per cent and 25 per cent respectively) including
them in their portfolios.
BMO will be offering the special rate of 2.25 per cent for net new
contributions made to a TFSA Savings Account until April 30th, 2013.
-- Canadians aged 18 and older can contribute up to $5,500 this year into a
TFSA. Last year, the federal government raised the annual Tax-Free
Savings Account (TFSA) contribution limit by $500, taking effect in
2013. Any unused contribution room from the previous year can be added
to this year's contribution room. In addition, any withdrawals can be
re-contributed the following year without affecting the annual
-- You can hold the same investments in a TFSA as you could 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
through interest, dividends or capital gains are tax-free.
To learn more about BMO Tax Free Savings Account, please visit
Research for the BMO Annual TFSA Report was conducted by Pollara and
completed between October 11 and October 16, 2012, with a sample of
1,000 Canadians. A probability sample of this size would yield
results accurate to +/- 3.1 per cent, 19 times out of 20.
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 $525 billion as at October 31, 2012, and more
than 46,000 employees, BMO Financial Group provides a broad range of
retail banking, wealth management and investment banking products and
Matthew Duffin, Toronto
Valerie Doucet, Montreal
Laurie Grant, Vancouver
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