TFSAs popular, misunderstood - MoneySense

TFSAs popular, misunderstood

Uptake swift on new savings vehicle but most Canadians are in the dark on details.

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Tax-Free Savings Accounts (TFSAs) have surged in popularity since their introduction in 2008, but a recent poll suggests few Canadians understand how to make the most of them.

A Bank of Montreal survey found that while 36% of Canadians hold a TFSA, awareness of the range of eligible investments for the vehicle is surprisingly low.

Fewer than half of respondents identified cash to be an eligible option, while 20% knew that TFSAs can hold mutual funds and 26% recognized GICs as an option.

More than one-third “have no idea what investments are eligible.”

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