Many unaware of TFSA options: BMO

While adoption rates increasing, many unclear about investments
By Amanda Silliker
|Canadian HR Reporter|Last Updated: 12/05/2011

When the calendar turns to 2012, it will mark the third anniversary of the tax-free savings account (TFSA). But, while adoption rates are increasing, many Canadians are still unclear about how to maximize their investment.

Close to one-half (44 per cent) hold a TFSA, up from 36 per cent in 2010, according to a survey of 1,500 people by BMO Bank of Montreal.

“The TFSA is still relatively new but there is certainly a much higher take-up rate than RRSPs (which) took a couple of decades before it really became fairly prominent in Canada,” said Dave Ablett, director of tax and estate planning at the Investors Group in Winnipeg. “We would certainly like to see (the take-up rate) higher but, after only three years, I don’t consider it to be excessively low.”