September 3, 2013
Copy form theri website:
"Starting on January 1, 2013, the amount Canadians can save tax-free increases by $5,500* each year. This means that you'll have another $5,500 in tax-free savings available on January 1, 2014. So if your TFSA is already at its maximum for 2013, and you're patient, you can contribute more in January 2014. But what if you don't want to wait? Good news - you don't have to.
How the TFSA Kick Start Account works:
Open a 2014 TFSA Kick Start Account and earn 1.35% interest on the money you save there. The TFSA Kick Start Account is not a registered Tax-free Savings Account, but will enable you to put money aside for your 2014 TFSA contribution.
On January 1, 2014, we'll take the total amount of interest you've earned in your TFSA Kick Start Account, and we'll double it! Since the most you can put in a TFSA for the 2014 year - without getting penalized - is $5,500, any interest earned above this amount will be deposited into your Investment Savings Account (ISA). If you don't already have an ISA, we'll open one up for you automatically.
We'll also deposit the 2014 contribution saved up in your 2014 TFSA Kick Start Account (up to $5,500) into your ING DIRECT Tax-Free Investment Savings Account, registered with the Canada Revenue Agency.
Remember, the money you deposit into your TFSA Kick Start Account will go towards your 2014 TFSA contribution. It will be kept separate from your current TFSA until January 1, 2014 to make sure it doesn't get counted as a 2013 contribution."
right now, the rate for TFSA is 1.35%, and double is 2.7%, which is kind of nice for 3 months.
February 17, 2013
Their posted rate as of today on TFSA savings accounts is actually 1.4%. After Jan 1, 2014, you are stuck earning 1.4% as it automatically gets deposited into a TFSA savings account. Less than half the rate People's Trust is offering. Let's do the math!!
Say you put $5500.00 in ING on Oct 1 and let it sit until Dec 31 @ 1.35% (you would think they could at least give you the TFSA savings account rate of 1.4%, bit I digress), when it gets deposited to an ING TFSA Savings account. Simple interest says you should get less than 19 bux, doubled for the promo is about 37 and change.
Now lets say you just kept the 5500 in your Peoples Trust account earning 1.8% due to the recent rate drop Dec 31 you would have around 25 dollars in interest. A whole 12 bux less than the ING promo. Jan 1 you put it in a TFSA savings account at Peoples Trust earning 3% and you'll get about $14 in interest in Jan, while the ING account would give you about $6.50 In interest in Jan for that same 5500 they now hold captive. By the end of Feb you're losing money.
Like I said before....I wish ING would quit with all the gimmicky promotions and just go back to giving better everyday rates.