I’m Starting a Family
Let us help you get financially prepared for the new addition to your family.
From saving to budgeting, we have a list of products and resources that will help you as you transition into parenthood and will provide you the peace of mind you need as you adjust to your new lifestyle.
I need to save
High Interest Savings Account
The savings account designed for long term savings. This account is service-charge free providing you manage your money online or through telephone banking. A convenient way to save while earning more with a premium interest rate!
Automatic Transfer
An ideal way to stay consistent with your savings. Set up a recurring automatic transfer to your savings account.
Tax-Free Savings Account (TFSA)
The TFSA is a flexible registered plan that allows you to save for short or long term goals. Introduced in 2009, TFSA’s offer a unique way of savings up to a specified amount each year determined by the Government of Canada. These accounts are tax sheltered, have a competitive interest rate, and allow you to withdraw your money at any time without penalty.
Features:
- earnings are tax sheltered
- contributions are not tax deductible
- withdrawal of contribution is not taxable
- unused contribution room will accumulate each year (ie. if you don’t contribute the maximum each year, unused contribution room will always carry forward to the following year)
- any withdrawn contributions cannot be re-contributed until the following year
- withdrawal of contribution increases the contribution room for future years (ie. if you withdraw $500 from your TFSA this year, you have an extra $500 in contribution room the following year)
Contribution Limits:
- 2009 – 2012: $5,000
- 2013 – 2014: $5,500
- 2015: $10,000
- 2016 – 2018: $5,500
- 2019 – 2022: $6,000
- 2023: $6,500
Contributions over the limit
At any time in the year, if you contribute more than your allowable TFSA contribution room, you will be considered to be over-contributing to your TFSA and you will be subject to a tax equal to 1% of the highest excess TFSA amount in the month, for each month you are in an excess contribution position.
*Note that it is the responsibility of the TFSA holder to ensure they do not exceed the annual maximum contribution limit.
TFSA GIC
If you know you will not need immediate access to your funds, you can also take advantage of our TFSA GICs with flexible term options of 1 to 5 years. With this product your funds remain tax sheltered while you earn a premium rate of interest. Note that funds invested in TFSA GICs cannot be withdrawn before the maturity date. Check out the current TFSA rates
I need to open an account for my child
Youth savings
It’s never too early to start saving for your child or to teach them the importance of saving. Set up recurring transfers on your payroll day or make deposits in-branch to this no fee account. Plus, when you open a Youth Savings, we will provide you with a Momentum Piggy Bank – have your child (or yourself) fill it up, bring it back, and we will match the contents to a maximum of $25.00 on your first deposit.
Features:
- eligibility: up to age 17
- no monthly account fee
- interest paid monthly, calculated daily
- free electronic statements
- unlimited In-branch Withdrawals/Deposits/Transfers
Registered Education Savings Plan (RESP)
A post-secondary education is an important investment to plan for. It is a government approved savings plan for the purpose of providing post-secondary education funding to a beneficiary. The beneficiary can be your child, grandchild, niece, nephew, etc.
Whether it is used for tuition, books or living expenses, we make it easy for you to start saving early so you will have the funds you need for your child’s education when you need them.
Benefits of RESPs:
- no minimum contribution required
- the federal government may add to your RESP contributions (up to a maximum of $500 per year, per child) with the Canada Education Savings Grant (CESG). The CESG is payable until the end of the calendar year a child turns 17, and the maximum lifetime CESG payment is $7,200
- depending on your income level, your child may also be eligible for an additional CESG contribution
- any income that is generated from contributions is tax-sheltered until withdrawn
Effect on contributor’s income tax—contributions to an RESP are not tax-deductible, but all of the investment income in the RESP is tax-sheltered as long as it remains in the plan. If for whatever reason the beneficiary of the RESP does not attend school and the contributions are returned to you, you do not have to include the returned funds as income on your income tax.
Important things to Note:
- in order to open an RESP, you require the beneficiary’s SIN and they must be a resident of Canada
- the lifetime RESP contribution maximum is $50,000 per child – if more than one RESP plan is opened for the same child, total contribution amounts cannot exceed the $50,000 lifetime maximum between each plan
I need to create a budget
Having a budget to follow on a monthly or weekly basis is vital to ensuring you aren’t living beyond your means, especially with the new expenses you will encounter such as childcare or any extra savings you plan to make.
Check out the Government of Canada’s handy Budget Calculator to see where you stand with your finances