B.C. residents are among the most savvy when it comes to taking advantage of the tax-free savings account (TFSA).
A survey by Angus Reid Public Opinion conducted for Canadian Tire Financial Services found that half of eligible British Columbians have opened a TFSA, the highest proportion in the country and higher than the national average of 38%.
TFSAs seem to be the most popular in Western Canada with only 23% in B.C. and 20% in Alberta saying they don’t plan to open a TFSA. That compares to 40% of those in Quebec who don’t see the benefit of the new savings vehicle that was launched in 2009.
Older Canadians are more drawn to the TFSA than younger Canadians. The survey found 49% of Canadians older than 55 have a TFSA, versus only 35% of those between 35 and 54, and only 30% between 18 and 34.
Nationally, Canadians in households with higher income were the most likely to have a TFSA with a majority of people with household income over $100,000 having an account. That compares with only 32% for households with less than $50,000 in annual income or 37% of those with incomes between $50,000 and $100,000.
Despite the availability of TFSAs over the past couple years, Canadians still don’t have a strong appreciation about its benefits (See “Confusion persists over tax-free savings accounts” – BIV Business Today, November 10, 2010)
Canadian Tire commissioned the survey in connection with its launch of its own high-interest TFSA savings product.