Personal Finance

Tangerine TFSA Savings account Vs Saving account

  • Last Updated:
  • Feb 5th, 2018 3:24 pm
[OP]
Deal Addict
Jul 26, 2012
1201 posts
44 upvotes

Tangerine TFSA Savings account Vs Saving account

Usually there is a 2%+ promotion for a non register savings account every 3 months. Would it be better to leave my money out of my Tangerine TFSA Savings account when it is only getting 1.1%?
Off topic but is dividends in a tfsa tax free as well? Will dividends count as a dividend tax credit or is that voided in a tfsa?
1 reply
Sr. Member
Oct 14, 2012
700 posts
437 upvotes
Woodstock
Any income earned by money in a TFSA is tax-free. So dividends, distributions and capital gains are all tax-free even when withdrawn from a TFSA.

On the less happy side, you cannot claim any capital losses on investments made in a TFSA, so if you lose money it's really gone.

There is no dividend tax credit for dividends earned in a TFSA.

If you can make more interest AFTER TAX keeping your cash outside your TFSA than inside your TFSA, then it's better off outside. The answer will vary depending on someone's personal tax rate on interest income.

I hope this helps a bit.

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