tfsa up to 3.5% | Canadian Tire | Discussion forum

Please consider registering
guest

sp_LogInOut Log In sp_Registration Register

Register | Lost password?
Advanced Search

— Forum Scope —




— Match —





— Forum Options —





Minimum search word length is 3 characters - maximum search word length is 84 characters

No permission to create posts
sp_Feed Topic RSS sp_TopicIcon
tfsa up to 3.5%
December 30, 2010
3:02 pm
stylintheo
Guest
Guests

I guess the bait and switch has started?

December 30, 2010
4:53 pm
rob
Guest
Guests

*Current Rate subject to change without notice.

You're 100% right.
I really thing the rules should be changed to allow us to move TFSA money around during the year without penalty to stop these scams. ING got me last year. I just pulled everything but the accumulated interest out of ING at the end of December and the first week of January it will be going into People's Trust or Canadian Direct along with 2011's deposit. At least they ended the year at 3%
I give Canadian Tire until March or April before they drop the rate. Just enough time to sucker in the folks getting an income tax rebate.

December 30, 2010
11:03 pm
Peter
Admin
Forum Posts: 1417
Member Since:
May 15, 2007
sp_UserOfflineSmall Offline

I just went through the posts in this site's Canadian Tire forum to find out the TFSA history starting in late 2009 (which I've now added to the comparison chart):

Sep 20, 2009: 1.50%
Dec 18, 2009: 2.00%
Jan 8, 2010: 3.15%
May 7, 2010: 2.15%
August 1, 2010: 2.50%
December 30, 2010: 3.50%

December 31, 2010
4:23 pm
CT?
Guest
Guests

Honestly, who would buy anything from Canadian (Made in China) Tire, much less give them you money?

December 31, 2010
5:36 pm
Andrew
Guest
Guests

Even when they dropped the rate to 2.15% in May 2010, it was still higher than their savings account rate and one of the higher TFSA rates out there. We'll see what they do in 2011.

January 1, 2011
2:40 pm
kilarney
Member
Members
Forum Posts: 146
Member Since:
November 8, 2009
sp_UserOfflineSmall Offline

Am I looking at the wrong site for canadian tire TFSA rate? I only see it as 3.05% right now. Did they already drop the rate or is the 3.5 still available?

January 1, 2011
3:51 pm
Andrew
Guest
Guests

Am I looking at the wrong site for canadian tire TFSA rate? I only see it as 3.05% right now. Did they already drop the rate or is the 3.5 still available?

3.05% is for the TFSA 5 Year GIC, here is where you can see the 3.5%:

https://www.myctfs.com/Rates/TaxFreeSavings/

Here is an ad stating "Count on an everyday rate - not a temporary promotional rate":

https://www.myctfs.com/Promo/index.jsp?source=1130

We will see how true this is...

January 1, 2011
7:23 pm
Rin
Guest
Guests

Just withdrawn all my TESA funds in Canadian Tire a couple days ago to see which bank to park my TFSA funds in 2011.
Now, I am wondering if it's OK to put this funds back to Canadian tire TFSA account.
Is anybody knows how it works?

January 2, 2011
3:21 pm
guest
Guest
Guests

Current Rate subject to change without notice. You're 100% right. I really thing the rules should be changed to allow us to move TFSA money around during the year without penalty to stop these scams. ING got me last year. I just pulled everything but the accumulated interest out of ING at the end of December and the first week of January it will be going into People's Trust or Canadian Direct along with 2011's deposit. At least they ended the year at 3% I give Canadian Tire until March or April before they drop the rate. Just enough time to sucker in the folks getting an income tax rebate.

If the government ever changed the rules to make the TFSA resemble a traditional savings account, the "bait and switch" game we see at this time of the year would likely disappear. Either that, or the banks would require that you keep cash on deposit for a minimum time period in order to qualify for a higher interest rate (which is really a GIC in disguise). The government probably won't change the rules because the banks would whine loudly about the extra overhead required for them to track and report on billions of transactions.

January 3, 2011
7:13 am
Kelly
Guest
Guests

I withdrew all my money from TFSA of CTF to put this money to another bank at the end of last year. In that case can I put all the amount I withdrew including the interest plus $5000 to TFSA this year? Also like someone said above, can I put my money back to CTF again including the interest and deposit this year's contribution $5000? I read the website but it was not clear to me.

"Under proposed changes announced on October 16, 2009, certain withdrawals made in the previous year may not be added back in the following year."

"Unused TFSA contribution room
The amount, either positive or negative, at the end of a particular calendar year after 2008, determined by the holder's unused TFSA contribution room at the end of the year preceding the particular year

PLUS
* the total amount of all withdrawals made under the holder's TFSA in the preceding calendar year, other than a qualifying transfer;
* the TFSA dollar limit for the particular year if, at some point in that year, the individual is at least 18 years old and a resident of Canada. In all other cases, the amount is nil.

MINUS
* the total of all TFSA contributions made by the holder in the particular year excluding a qualifying transfer or an exempt contribution.

Under proposed changes announced on October 16, 2009, certain withdrawals made in the previous year may not be added back in the following year, after that date. The exclusion in the first bullet above also applies (after that date) to:
* withdrawals of amounts included in the definition of "advantage",
* amounts upon which income tax was required to be paid by the TFSA trust; and
* any other income related to those amounts."

Please let me know if someone knows what has been changed and how much I can contribute to TFSA this year.

January 3, 2011
4:58 pm
Andrew
Guest
Guests

Kelly said:

Under proposed changes announced on October 16, 2009, certain withdrawals made in the previous year may not be added back in the following year, after that date. The exclusion in the first bullet above also applies (after that date) to:
* withdrawals of amounts included in the definition of "advantage",
* amounts upon which income tax was required to be paid by the TFSA trust; and
* any other income related to those amounts."

Please let me know if someone knows what has been changed and how much I can contribute to TFSA this year.


I'm not a tax expert, and I am in a similar situation where I pulled money out of a TFSA at the end of 2010 and wanting to put that amount in a different TFSA. The key points here appear to be any money related to an "advantage" or "TFSA trust".

According to http://www.cra-arc.gc.ca/tx/nd.....tml#Unused

An advantage is defined as any benefit, loan, or debt that depends on the existence of the TFSA. If an advantage in relation to a TFSA is extended to any person who is, or who does not deal at arm's length with, the holder of the TFSA, there are tax consequences. Exceptions include TFSA distributions, administrative or investment services in connection with a TFSA, loans and debt on arm's-length terms, and payments or allocations to a TFSA by the issuer, such as reasonable payments of bonus interest. The amount of tax payable is:

* in the case of a benefit, the fair market value (FMV) of the benefit; and

* in the case of a loan or debt, the amount of the loan or debt.

An advantage may also include any increase in the value of the TFSA that can reasonably be considered to be attributable, directly or indirectly, to:

* a transaction or event (or a series of transactions or events) that does not reflect commercial terms and whose main purpose is to enable the holder (or another person or partnership) to benefit from the tax-exempt status of the TFSA; or

* a payment received in substitution for either a payment for services rendered by the holder or non arm's length person, or a payment of a return on investment or proceeds of disposition in respect of property held outside of the TFSA by the holder or non-arm's length person.

As for a TFSA Trust, it is defined here: http://www.cra-arc.gc.ca/tx/tr......html#TFSA as

A trust governed by a TFSA is generally non-taxable. Where the funds in the TFSA are used in the carrying on of a business or used to acquire non-qualified investments, the trust will be taxable to the extent of the income earned from that business or those investments. For more information, go to http://www.cra.gc.ca/tfsa.

I don't believe that income from a CTFS TFSA would qualify under either of these definitions so you should be able to put that money back in.

This is my first time withdrawing money from a TFSA and I'm thinking of waiting for my 2010 Notice of Assessment just to be sure, but then I lose out on the interest for the waiting period :frown:

January 3, 2011
6:00 pm
Kelly
Guest
Guests

Thank you, Andrew!

January 5, 2011
7:14 pm
guest
Guest
Guests

When I called Canadian Tire and inquired about any fees that they charge, they informed me that there was a $50 transfer out penalty if in the future you close down the account, or transfer your TFSA to another bank. (Just like President's Choice Financial). For that reason, and the fact that the 3.5% rate is subject to change without notice, I'm out!

January 6, 2011
10:08 am
Blair
Guest
Guests

This does not sound that sinister to me. When comparing CTFSA @ 3.5% to Peoples choice say @ 3% there is a .5% difference. On $15,000 that's $75. If CanTire does drop their rates to less than 3% you may want to move and would be subject to the $50 penalty. If they were to drop the rate in May the interest differential between 3.5 and 3.0 would be around $30. Paying the penalty for the move would cost you around $20.

If they did keep the rate or if it did not go below 3% you would still be ahead.

Since the amount you can put into the account is limited the cost to CanTire for the higher rate is limited. I look at it more like a signing bonus.

Although you could take your money out at the end of the year without penalty, many people will not and in my opinion this is what CanTire is counting on.

January 6, 2011
12:17 pm
kilarney
Member
Members
Forum Posts: 146
Member Since:
November 8, 2009
sp_UserOfflineSmall Offline

they informed me that there was a $50 transfer out penalty if in the future you close down the account, or transfer your TFSA to another bank. (Just like President's Choice Financial)

so the guys who are the no-fee banks are whacking people with fees? Does that sound right? Do we see the orange ING guy on tv saying he has fees? Ally same thing...no fees BUT you will be punished if you mess with your TFSA because they lure you with a sneaky temporary spike in rates. Anybody have a good contact that we can send a bunch of complaints to? It stinks what they do.

January 8, 2011
10:40 am
stylintheo
Guest
Guests

It does not cost 50$ to close any TFSA
it costs 50$ to transfer
but to close the account is free

January 8, 2011
11:02 am
stylintheo
Guest
Guests

I just closed my TFSA with CTF today
I went with CDF @ 3%

January 8, 2011
11:09 am
stylintheo
Guest
Guests

no way CTF keeps it above 3% for the whole year
it will be at least 2.5% In April. just look at the history.
last year I signed up at 3.15% and it went to 2.15%
thank god it went up at least to 2.5%. if they had any plans to keep it at 3%
why wait until Dec.30 to change the rates?

January 9, 2011
11:36 am
dougjp
Member
Members
Forum Posts: 585
Member Since:
January 9, 2011
sp_UserOfflineSmall Offline

I made the impulse mistake of adding the 2011 amount to my existing CTC TFSA which I've had for 2 years. Because they stopped their temporary higher rate scam, and put this on their web site " Count on an everyday rate -- not a temporary promotional rate ". Why did they have to say that? Because they have developed such a poor reputation for conning money via short term promotional rates! Interesting that their savings rate has finally been brought up to being competitive with the best.

Anyway my decision to go with them again is a test. If they have in fact changed their strategy and will be straight with their rates all the time, and competitive, then great. If they drop the rates through the year to being uncompetitive with CDIC insured Ally and Peoples, where they are currently better than them, then they will lose the TFSAs and savings.

" We may never pass this way again " - Seals & Crofts

January 10, 2011
9:12 am
stylintheo
Guest
Guests

but if they wanted to change the rate and fly str8
why change it on the 30th of Dec. they only did that once they saw the $ flying out of that place

No permission to create posts

Please write your comments in the forum.