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🏠💵 Scotiabank Supports Canadians with the Launch of the First Home Buyers Savings Account

Friday, 08 September 2023 04:33.PM

- First Home Savings account offers eligible Canadians the ability to grow their investments tax-free, and allows tax-free withdrawals towards the purchase of their first home.
- Scotiabank offers a 5.00% interest rate on high interest Scotiabank Savings Accelerator Account. -

Scotiabank launched its new tax-free First Home Savings Account (FHSA) to help Canadians reach one of life's most exciting milestones: owning their first home. The FHSA lets first time homebuyers contribute up to $8,000 each year, with a maximum lifetime contribution of $40,000. For those ready to get started on their home savings journey, Scotiabank is offering an interest rate of 5.00% on new FHSA deposits with the Savings Accelerator Account from now until January 31, 2024.

Created by the Federal government to address housing affordability, the FHSA is the best of both a Registered Retirement Savings Plan (RRSP), which offers tax-deduction benefits, and a Tax-Free Savings Account (TFSA), which allows investments to grow tax-free.1 Contribution rooms starts accumulating only after an FHSA is opened, and any unused contribution room can be carried over to the following year. Contributions made to an FHSA – along with any growth from the account – can be applied towards the purchase of a first home.

Additionally, there are two options that can further boost the account's potential: spouses can each have an FHSA account and double their combined maximum contribution, and the FHSA can be used alongside $35,000 from the RRSP Home Buyers' Plan (HBP).

"We know home affordability is a big issue on the minds of Canadians. The FHSA unlocks tremendous value and flexibility for those looking to save for a down payment toward their first home," said Kingsley Chak, Senior Vice President of Retail Deposits, Savings, and Investments, who recently spoke about the FHSA on the Scotiabank Perspectives Podcast. "Customers are encouraged to work with a Scotiabank Financial Advisor to determine what investment option best aligns with their personal situation and goals, and to leverage tools such as Scotia Smart Investor via Advice+ to help set, track and manage their financial goals."

SOURCE: Scotiabank