Canadians may be able to save more in their Tax Free Savings Accounts (TFSA) but most are still confused by how the account actually works. Tax Free Savings Accounts (TFSA) seemed like a simple concept when it was announced in 2009. Canadians over the age of 18 were allowed to save up to $5,000 per year in a TFSA. But the rules are easily misinterpreted. I know several people who have been hit with overcontribution fines.
The accounts, not to be implemented until 2015, are only for low-income seniors and youth. These banks should extend this benefit to the large number of Canadians between the ages of 18 and 65 who are also currently living in poverty. It is critical that services for low-income people are universal and not create divisions between the deserving and the un-deserving poor.