The Best Thing to do With Your Tax Refund – TFSA’s and Why You Should Have One @TD_Canada
This post was sponsored by TD but, as always, opinions are my own.
Tax time is coming up! We all know how important it is to file your income taxes, but not everyone knows what to do with their tax refund once they get it.
Every year my husband and I go and file our income taxes. We used to think that our tax refund should be treated like “mad money”. We would get our tax refund and out shopping we would go. We realized, however, that this wasn’t necessarily the best course of action. We didn’t really need any of the things we were wasting our refund on and when we needed money, or things were tight, that fancy new TV wasn’t there to help us. We decided to get our heads on straight and do something that would benefit us for years to come.
We went to the bank, and opened up a TFSA from TD. That TFSA was one of the best choices we have made for our family. We now have a nice little nest egg saved in case something happens to us financially, so that we are able to support our family! We contribute our Tax Refund to our TFSA from TD every year now and the growth has been great. In fact, this year our couch broke and now, we have enough money in our TFSA that I can go out and purchase a new one without using credit. Even after the couch, we will still have enough left over in the TFSA in case of a financial emergency. This, is all possible just from using a TFSA to invest our tax refund every year.
A tax refund can seem like a blessing, especially if you want that fancy new couch, or a brand new TV. Don’t be too quick to spend your tax refund all in one place. In fact, the best thing that you could do is invest your refund in a TFSA.
What is a TFSA?
A Tax-Free Savings Account (TFSA) is a registered plan where you can save a certain amount (determined by the government and subject to change) per year. With a TFSA you are not taxed on the income you earn. You are able to save tax free. For more information see here: https://www.tdcanadatrust.com/products-services/investing/tax-free-savings-account/tax-free.jsp
Why You Should Invest Your Tax Refund in a TFSA
There are many reasons that investing your Tax Refund in a TFSA is beneficial to you:
Save Long or Short Term
With a TFSA you can choose to save your money for long or short term goals.
Tax Free
The interest you earn on your money invested in a TFSA, is tax free! This gives you the ability to earn more on your investment.
Money Smart
Investing your money in a Tax-Free Savings Account is a great way to be smart about your money and your future goals.
TD Canada Trust makes it easy
TD will help you find the right Tax-Free Savings solutions for every type of investor from high interest savings accounts, to term deposits or mutual funds. For example, you can earn up to 8.88% with a 3-year Security GIC Plus.
Please visit https://www.tdcanadatrust.com/products-services/investing/tax-free-savings-account/tax-free.jsp to find out more info on the various TFSAs available at TD, FAQs, what a TFSA is and what the difference of an RSP and a TFSA.
Since opening a TFSA with TD, we have been able to save a good amount, tax free, for our long term goals! If you are looking for a great way to save money for your future, invest your tax refund in a TD TFSA like we did. You won’t regret it.
Do you invest your Tax Refund?
I have never heard of this. I have not had a tax refund in a couple of years! But if I do I’m totally checking into this anything that will save me money will make me happy.
These are all great tips, it is a way better solution than mad money for sure. TD is where I bank!
I’ve never actually invested my tax fefund. I really need to look in to this though. It sounds like a very good idea. I’m always smart about money, so this is something I should probably start doing.
I love my TD branch. I will have to ask about a TFSA. It is a great idea to invest your return.
A TFSA sounds like a great way to put a tax refund to good use. I’ve always been a fan of using my excess money to make more money.
We have been able to invest our returns a few times. I will have to check out TD Bank and see what they have that would work for us.
I have never heard of a TFSA account before so I just learned something new that I am going to be doing every year for tax time. I use mine as mad money too. This is a much better idea.
Wow, now this does sound like a great way to save money. I wonder if we have something like this in the US. Thanks for the info.
It is such a good idea to get a TFSA! Definitely something my advisor taught me about right off the bat.
Tfsa are fantastic! Such an easy way to save. I have one each for the kids
Saving money without paying interest on the income you earn is an excellent idea. I want to look for investment avenues like this for our family.
Man, I wish we had savings accounts like this in the USA! We have to claim out interest on taxes which stinks.
Our refund is long gone but this is a great idea. I’ve had my back account with TD since I was 13 so when I’m looking to do anything like this its always with them!
I use my tax returns to get caught up on bills. It is smart to try to invest it. I will have to ask the next time i am at TD.
I’ve never heard of this option of savings! We sadly didn’t get a refund back this year, but would still like to look into this option.
Wow!! This sounds brilliant! Something everyone needs. I wonder if we have the equivalent in the U.S.?
I’m all about saving my refund too. I think this is such a smart use of the funds.