Welcome!

News Feed Item

REPEAT-BMO Study: TFSAs Gaining Ground While RRSPs Remain Popular Among Canadian Investors

- More than 40 per cent of Canadians would choose to invest extra money in a TFSA; 37 per cent in an RRSP

TORONTO, ONTARIO -- (Marketwire) -- 01/19/13 -- With the annual deadline for contributing to a Registered Retirement Savings Plan (RRSP) fast approaching, many Canadians are wondering whether they should invest solely in an RRSP or split their investment dollars between an RRSP and a Tax-Free Savings Account (TFSA). While the two investment vehicles complement each other and boast impressive adoption rates among Canadians, a BMO study has found that many are intrigued by the TFSA, in particular.

According to the national study:


--  Two-thirds (67 per cent) of Canadians have an RRSP and 39 per cent have
    a TFSA. 
--  If they were given a limited amount of money to invest, 42 per cent of
    Canadians would invest the funds in a TFSA while 37 per cent would put
    it towards a RRSP. 
--  The most attractive TFSA benefits cited were that investments are tax-
    free (36 per cent) and that funds can be withdrawn at any time (20 per
    cent). 

"Whether saving for travel, the purchase of a home, a child's education or retirement, it's encouraging to see that Canadians are investing in their future by contributing to TFSAs and RRSPs," said Serge Pepin, Vice President, Investment Strategy, BMO Asset Management Inc. "Both programs play important roles in helping Canadians save and invest in a tax-efficient manner. They complement each other and should be used in unison, so it's important that investors understand their differences."

Mr. Pepin noted that a TFSA allows Canadians to easily earn tax-free investment income to meet their savings needs. Key benefits of this registered plan include:


--  No minimum contribution required to open an account 
--  Investors pay no income tax on investment returns earned in the account 
--  There are no taxes on funds that are withdrawn 
--  TFSAs can hold a wide range of investments 
--  The federal government recently raised the annual contribution limit for
    a TFSA from $5,000 to $5,500 

An RRSP, on the other hand, is a tax-deferred savings vehicle that is designed specifically to help Canadians save for their retirement. An RRSP is also a wise investment tool because:


--  Investment growth is tax-free until withdrawn, meaning retirement wealth
    has the potential to grow faster than if invested outside an RRSP 
--  Contributions to an RRSP are typically tax deductible, lowering annual
    taxable income and income taxes payable 
--  RRSPs can hold a wide range of qualified investments 
--  Funds can easily transition to retirement income 
--  Spouses can split income to reduce their combined taxes payable 

"Ideally, Canadians should be contributing to both a TFSA and an RRSP because they each offer distinct advantages," added Mr. Pepin.

BMO offers Canadians special, limited time TFSA and RRSP promotions

To encourage Canadians to boost their savings and invest for their future, BMO has introduced special offers on TFSA Savings Account deposits and RRSP contributions:


--  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. 
    
--  Until March 1st, 2013, if you set up and maintain a new RRSP continuous
    savings plan in your BMO mutual funds account for 12 months, you will
    receive a one-time 15 per cent bonus on your first month's contribution
    (up to a maximum of $150).  

For more information on the TFSA, please visit: www.bmo.com/TFSA.

For more information on the RRSP, please visit: www.bmo.com/Retirement.

Get the latest BMO press releases via Twitter by following @BMOmedia.

The Pollara online survey was 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.

BMO Mutual Funds are offered by BMO Investments Inc., a financial services firm and separate legal entity from the Bank of Montreal.

Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. Please read the prospectus of the mutual fund before investing. Mutual funds are not guaranteed, their values change frequently and past performance may not be repeated.

Contacts:
Media Contacts:
Rachael McKay, Toronto
416-867-3996
[email protected]

Valerie Doucet, Montreal
514-877-8224
[email protected]

Laurie Grant, Vancouver
604-665-7596
[email protected]

Internet: www.bmo.com
Twitter: @BMOmedia

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

Latest Stories
SYS-CON Events announced today that Outscale, a global pure play Infrastructure as a Service provider and strategic partner of Dassault Systèmes, will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Founded in 2010, Outscale simplifies infrastructure complexities and boosts the business agility of its customers. Outscale delivers a secure, reliable and industrial strength solution for its customers, which in...
New competitors, disruptive technologies, and growing expectations are pushing every business to both adopt and deliver new digital services. This ‘Digital Transformation’ demands rapid delivery and continuous iteration of new competitive services via multiple channels, which in turn demands new service delivery techniques – including DevOps. In this power panel at @DevOpsSummit 20th Cloud Expo, moderated by DevOps Conference Co-Chair Andi Mann, panelists will examine how DevOps helps to meet th...
As DevOps methodologies expand their reach across the enterprise, organizations face the daunting challenge of adapting related cloud strategies to ensure optimal alignment, from managing complexity to ensuring proper governance. How can culture, automation, legacy apps and even budget be reexamined to enable this ongoing shift within the modern software factory?
SYS-CON Events announced today that Cloudistics, an on-premises cloud computing company, has been named “Bronze Sponsor” of SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Cloudistics delivers a complete public cloud experience with composable on-premises infrastructures to medium and large enterprises. Its software-defined technology natively converges network, storage, compute, virtualization, and management into a ...
SYS-CON Events announced today that A&I Solutions has been named “Bronze Sponsor” of SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Founded in 1999, A&I Solutions is a leading information technology (IT) software and services provider focusing on best-in-class enterprise solutions. By partnering with industry leaders in technology, A&I assures customers high performance levels across all IT environments including: mai...
Every successful software product evolves from an idea to an enterprise system. Notably, the same way is passed by the product owner's company. In his session at 20th Cloud Expo, Oleg Lola, CEO of MobiDev, will provide a generalized overview of the evolution of a software product, the product owner, the needs that arise at various stages of this process, and the value brought by a software development partner to the product owner as a response to these needs.
SYS-CON Events announced today that Tappest will exhibit MooseFS at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. MooseFS is a breakthrough concept in the storage industry. It allows you to secure stored data with either duplication or erasure coding using any server. The newest – 4.0 version of the software enables users to maintain the redundancy level with even 50% less hard drive space required. The software func...
Most technology leaders, contemporary and from the hardware era, are reshaping their businesses to do software in the hope of capturing value in IoT. Although IoT is relatively new in the market, it has already gone through many promotional terms such as IoE, IoX, SDX, Edge/Fog, Mist Compute, etc. Ultimately, irrespective of the name, it is about deriving value from independent software assets participating in an ecosystem as one comprehensive solution.
SYS-CON Events announced today that EARP will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. "We are a software house, so we perfectly understand challenges that other software houses face in their projects. We can augment a team, that will work with the same standards and processes as our partners' internal teams. Our teams will deliver the same quality within the required time and budget just as our partn...
SYS-CON Events announced today that delaPlex will exhibit at SYS-CON's @ThingsExpo, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. delaPlex pioneered Software Development as a Service (SDaaS), which provides scalable resources to build, test, and deploy software. It’s a fast and more reliable way to develop a new product or expand your in-house team.
In his keynote at @ThingsExpo, Chris Matthieu, Director of IoT Engineering at Citrix and co-founder and CTO of Octoblu, focused on building an IoT platform and company. He provided a behind-the-scenes look at Octoblu’s platform, business, and pivots along the way (including the Citrix acquisition of Octoblu).
SYS-CON Events announced today that Systena America will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Systena Group has been in business for various software development and verification in Japan, US, ASEAN, and China by utilizing the knowledge we gained from all types of device development for various industries including smartphones (Android/iOS), wireless communication, security technology and IoT serv...
SYS-CON Events announced today that Outscale will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Outscale's technology makes an automated and adaptable Cloud available to businesses, supporting them in the most complex IT projects while controlling their operational aspects. You boost your IT infrastructure's reactivity, with request responses that only take a few seconds.
Regardless of what business you’re in, it’s increasingly a software-driven business. Consumers’ rising expectations for connected digital and physical experiences are driving what some are calling the "Customer Experience Challenge.” In his session at @DevOpsSummit at 20th Cloud Expo, Marco Morales, Director of Global Solutions at CollabNet, will discuss how organizations are increasingly adopting a discipline of Value Stream Mapping to ensure that the software they are producing is poised to o...
DevOps at Cloud Expo – being held October 31 - November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA – announces that its Call for Papers is open. Born out of proven success in agile development, cloud computing, and process automation, DevOps is a macro trend you cannot afford to miss. From showcase success stories from early adopters and web-scale businesses, DevOps is expanding to organizations of all sizes, including the world's largest enterprises – and delivering real r...