A new poll suggests Canadians are a little confused when it comes to how Tax Free Savings Accounts actually work.
According to the report released by the Bank of Montreal, 55 per cent of Canadians have a Tax Free Savings Account, but only two-thirds of them indicate they have some knowledge of how they actually operate.
Conversely, 17 per cent say they are “very knowledgeable” when it comes to their TFSA’s.
Despite those figures, the report revealed only three per cent of respondents were able to correctly answer eight basic true or false questions:
One-fifth of Canadians correctly answered six or seven of the eight questions, and shockingly, 14 per cent couldn’t even answer one.
The biggest improvement in Canadians’ knowledge of TFSAs is knowing that the annual contribution rate is not linked to their income.
About 56 percent of Canadians were aware of that.