Tara and I thought we would be smart and put in some money to a Tax Free Savings account to make it grow a little for the wedding.
We had a total of $10000 to add, so we opened two accounts at PC Financial for $5000 each.
Well, PC decided to drop their interest from 3 to 0.75% which was pretty much pointless. So we moved the money to a TFSA at ING Direct.
Turns out that’s not allowed. See, in a single calendar year you can contribute a total of $5000 to a TFSA, ever.
So what WE did, was contribute, withdrawl, and contribute again. So our overage charge is $5000. Each.
And the penalty for that? 1% interest for the overage times the number of months over. For me, that works out to $200, for Tara, it’s $250.
This completly defeats the purpose, and it still makes no sense to Tara and I as we contributed a total of $5000 to our accounts, not $5000 and another $5000.
But that doesn’t matter, as according the government we had opened two accounts, each, for $5000.
So the $60(total!) “tax free” interest we made on the account is costing us $450!
Never again, not going to go anywhere near these stupid ass accounts….