Tax-free growth for your clients’ savingsTax-Free Savings Accounts from Manulife Bank

Name, DESIGNATIONTitle, Company Name

Date

The need for tax-free savings accounts

Additional tax-sheltered savings

Good for short-term and long-term savings

Part of overall financial plan

What is a Tax-Free Savings Account (TFSA)?

Flexible savings account

Available for Canadian residents 18 years or older

Tax-free growth on savings

Contribution room tracked by Canadian Revenue Agency (CRA)

Contributing to a TFSA

Annual contribution limit provided by Canada Revenue Agency (CRA)

Unused contribution room will carry forward

No tax deduction for contributions

Withdrawing from a TFSA

All withdrawals and income earned are tax-free

Income earned and withdrawn does not affect income-tested benefits and credits

Withdrawals are added back to the available contribution room in the next calendar year

No restrictions on how withdrawals are used

Penalties will be charged for: Contributions over limits

Non-resident contributions

Non-qualified investments

Investment planning with a TFSA

No restriction on the number of TFSA accounts held per person, as long as combined contributions do not exceed limits

Fees are not tax deductible

Direct transfers between TFSAs of one account holder do not affect contribution room

Possible uses for a tax-free savings account

First portion of any non-registered assets/bank accounts

Emergency funds

Saving for mid-size purchases

Instead of RRSP for low-income earners

In addition to RRSP for high-income earners

Excess RRIF income

RRSP refunds

Manulife Bank has three TFSAs for your clients

Tax-Free Advantage Account A high-interest bank account

Tax-Free GIC (1 to 5-year) Long-term interest-bearing investment

Investment Savings Account Investment Savings Account is TFSA-eligible if your dealer has a

Tax-Free plan

Product details – Tax-Free Advantage Account

Product Summary High-interest, fully liquid Tax-Free Savings Account

Availability Client name (off-book)

Minimum Deposit None

Interest Structure Variable rate. Full rate paid on every dollar. No tiers

Liquidity Fully liquid -- no penalty for withdrawal

Deposit Options Deposit cheque by mail, local deposit via advisor, funds transfer

Deposit Fees None

Withdrawal Options and Fees

Official Cheque, transfer to another bank account, transfer to other TFSA account of same account holder -- no withdrawal fees

Statements Quarterly

The variable annual interest rate is applied to all funds in the account. Interest is calculated daily on the total closing balance and paid monthly. Rate is subject to change.

Product details – Tax-Free GIC

Product Summary Long-term interest-bearing investment

Availability Client name (off-book)

Minimum Deposit $2,500

Interest Structure Annual compound interest paid at maturity

Liquidity Can be redeemed prior to maturity, subject to market value adjustment and expense recovery fees

Deposit Options Cheque, local deposit via advisor

Deposit Fees None

Withdrawal Options and Fees

No fees at maturity. Can be redeemed prior to maturity, subject to market value adjustment and expense recovery fees

Statements Deposit confirmation and renewal notice

Interest is forfeited if a Short Term Deposit is redeemed before 30 days. If redeemed on or after 30 days but prior to maturity the interest rate is prorated (rate discount of 1.25%). In addition there is a $25.00 administration fee charged for early redemptions.

How to apply

One application for both Tax-Free Advantage Account and Tax-Free GIC (AB0490E).

Application includes instruction sheet for completing and submitting it and what documentation you need from the client.

Application and all product information can be found in the Banking section of Repsource – Manulife’s advisor website – at manulife.ca/repsource.

For more information, contact your Business Development Director at 1-800-567-9170.

Important notes

Tax-Free Advantage Account, Tax-Free GIC and Investment Savings Account are offered through Manulife Bank of Canada.

Manulife, Manulife Bank, the Manulife Bank For Your Future logo, the Block Design, the Four Cubes Design, and Strong Reliable Trustworthy Forward-thinking, are trademarks of The Manufacturers Life Insurance Company and are used by it, and by its affiliates under license.

Questions?

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