The Globe and Mail

Go to the Globe and Mail homepage

Jump to main navigationJump to main content

Press release from Marketwire

Financial Literacy Month-BMO's Tip of the Day: Invest in a Tax Free Savings Account to Save Thousands of Dollars

Thursday, November 01, 2012

Financial Literacy Month-BMO's Tip of the Day: Invest in a Tax Free Savings Account to Save Thousands of Dollars06:00 EDT Thursday, November 01, 2012TORONTO, ONTARIO--(Marketwire - Nov. 1, 2012) - To mark Financial Literacy Month, BMO Bank of Montreal is releasing a series of financial tips throughout November. As part of 'Making Money Make Sense' and BMO SmartSteps, the tips are designed to help individuals and families save and manage their day-to-day finances more effectively.BMO's Tip of the Day: Investing in a Tax Free Savings Account (TFSA) can save thousands of dollars in taxes over the long term.A TFSA offers the flexibility of tax-free withdrawals and no restrictions on how the funds are used.Here is an example of the benefits of tax-free growth in a TFSA:Invested in a TFSAInvested outside a TFSA (Taxable account)Maximum Annual Contribution$5,000$5,000Rate of Return5%5%Term of Investment20 years20 yearsTotal Investment$173,596$143,903Total Tax Savings$29,693$0*5 per cent rate of return for illustrative purposes only"When saving for the short or long term, it's important that Canadians take advantage of tax-friendly options wherever possible," said David Heatherly, Vice President, BMO Bank of Montreal. "TFSAs are powerful investment tools that allow Canadians to enjoy the benefit of tax-free growth, which can help them reach their investment goals faster." Try the BMO TFSA Calculator to learn how TFSAs can help grow your savings faster. For more information on TFSAs, please visit For more on financial literacy, Canadians can visit the Government of Canada's Financial Literacy Month website, as well as BMO's Financial Literacy online resource. About BMO Financial GroupEstablished in 1817 as Bank of Montreal, BMO Financial Group is a highly diversified North American financial services organization. With total assets of $542 billion as at July 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 solutions.FOR FURTHER INFORMATION PLEASE CONTACT: Contact Information: Media Contacts:Jessica Park, Toronto(416) 867-3996jessica1.park@bmo.comValerie Doucet, Montreal(514) 877-8224valerie.doucet@bmo.comLaurie Grant, Vancouver(604) 665-7596laurie.grant@bmo.comInternet: www.bmo.comTwitter: @BMOmedia