ING Direct is known for its innovative products, that only entice both current and new customers to its bank.
ING Direct has brought back their Tax Free Savings Account (TFSA) Kick Start Program for the 3rd year.
In 2011, Canadians can save an additional $5,000 without being taxed on the interest they earn in a Tax Free Savings Account. ING Direct feels that there is no reason to wait. This is why they credit the 2011 TFSA Kick Start Account, which allows you to make next year’s contribution today.
What is this promotion?
For those who are unsure, the TFSA Kick Start Program is designed to encourage you to place your Tax Free Savings Account dollars in the ING TFSA Savings Account. By doing this early, you will receive double the interest between when you deposit and December 31st, 2010.
This is definitely an enticing offer; you are able to get double the interest by just saving in an account you are likely to have used – well this is for those who may already have the ING TFSA Savings Account.
What is the interest rate provided?
The bonus is based on the regular current rate of 1.5%, this means that double the interest will get you the prorated portion of 3.1% for the next few months. This is considerably higher from last year’s base rate of 1.05%, and the risk is very low as well.
Why should I use the TFSA Kick Start Account?
Many of us ignore the benefits of using a TFSA account, which leads to a good bit of Canadians saving their money in a regular savings account. Right now, it is a great time to start saving money, seeing as you can earn double the interest.
Once you have saved the maximum amount of money in the Kick Start Account, you should try to put what you can in your regular TFSA account, simply because you are still able to earn interest on the money put into the account.
Now putting together $5,000 can be difficult for most people, however even if you cannot get the maximum contribution amount, it is still a good idea to put away as much as you can. ING brings this offer around to its customers once a year, and it will definitely be back next year.
With that said, I am sure we will be seeing the Kick Start Account program for another year. This means that you can start saving again around the same time next year, at an increased interest rate. With that said, you should save money regularly, and once the promotion kicks in again, you put the money into to it immediately, which will give you the maximum growth for your money.
ING Direct is definitely a bank that brings what the people is looking for, and I am glad to see them continue to provide great service each year.
image source: Canadian Pacific