Tax-free growth for your clients’ savings Audience Advisors Length 1 hour Creator Manulife Bank Product and Marketing Department CE Credit Reference # Governing Body Number of Credits & Category Credit Number CE Credit valid until… CSF (La Chambre) 1 group savingsCSF September 30, 2014 Advocis 1 CE CreditIAS October 24, 2014 IIROC 1 PK/PD-December 31, 2014 AIC 0.5 Life15794Ongoing Important to note: (Put any tips/reminders, etc. here)

Tax-free growth for your clients’ savings Tax-Free Savings Accounts from Manulife Bank Name, DESIGNATION Title, Company Name Date

The need for tax-free savings accounts  Additional tax-sheltered savings  Good for short-term and long-term savings  Part of overall financial plan

What is a Tax-Free Savings Account (TFSA)?  Flexible savings account  Available for Canadian residents 18 years or older  Tax-free growth on savings  Contribution room tracked by Canadian Revenue Agency (CRA)

Contributing to a TFSA  Annual contribution limit provided by Canada Revenue Agency (CRA)  Unused contribution room will carry forward  No tax deduction for contributions

Withdrawing from a TFSA  All withdrawals and income earned are tax-free  Income earned and withdrawn does not affect income- tested benefits and credits  Withdrawals are added back to the available contribution room in the next calendar year  No restrictions on how withdrawals are used  Penalties will be charged for:  Contributions over limits  Non-resident contributions  Non-qualified investments

Investment planning with a TFSA  No restriction on the number of TFSA accounts held per person, as long as combined contributions do not exceed limits  Fees are not tax deductible  Direct transfers between TFSAs of one account holder do not affect contribution room

Possible uses for a tax-free savings account  First portion of any non-registered assets/bank accounts  Emergency funds  Saving for mid-size purchases  Instead of RRSP for low-income earners  In addition to RRSP for high-income earners  Excess RRIF income  RRSP refunds

Manulife Bank has three TFSAs for your clients  Tax-Free Advantage Account  A high-interest bank account  Tax-Free GIC (1 to 5-year)  Long-term interest-bearing investment  Investment Savings Account  Investment Savings Account is TFSA-eligible if your dealer has a Tax-Free plan

Product details – Tax-Free Advantage Account Product SummaryHigh-interest, fully liquid Tax-Free Savings Account AvailabilityClient name (off-book) Minimum DepositNone Interest StructureVariable rate. Full rate paid on every dollar. No tiers LiquidityFully liquid -- no penalty for withdrawal Deposit OptionsDeposit cheque by mail, local deposit via advisor, funds transfer Deposit FeesNone Withdrawal Options and Fees Official Cheque, transfer to another bank account, transfer to other TFSA account of same account holder -- no withdrawal fees StatementsQuarterly The variable annual interest rate is applied to all funds in the account. Interest is calculated daily on the total closing balance and paid monthly. Rate is subject to change.

Product details – Tax-Free GIC Product SummaryLong-term interest-bearing investment AvailabilityClient name (off-book) Minimum Deposit$2,500 Interest StructureAnnual compound interest paid at maturity LiquidityCan be redeemed prior to maturity, subject to market value adjustment and expense recovery fees Deposit OptionsCheque, local deposit via advisor Deposit FeesNone Withdrawal Options and Fees No fees at maturity. Can be redeemed prior to maturity, subject to market value adjustment and expense recovery fees StatementsDeposit confirmation and renewal notice Interest is forfeited if a Short Term Deposit is redeemed before 30 days. If redeemed on or after 30 days but prior to maturity the interest rate is prorated (rate discount of 1.25%). In addition there is a $25.00 administration fee charged for early redemptions.

How to apply  One application for both Tax-Free Advantage Account and Tax-Free GIC (AB0490E).  Application includes instruction sheet for completing and submitting it and what documentation you need from the client.  Application and all product information can be found in the Banking section of Repsource – Manulife’s advisor website – at manulife.ca/repsource.  For more information, contact your Business Development Director at

Important notes Tax-Free Advantage Account, Tax-Free GIC and Investment Savings Account are offered through Manulife Bank of Canada. Manulife, Manulife Bank, the Manulife Bank For Your Future logo, the Block Design, the Four Cubes Design, and Strong Reliable Trustworthy Forward-thinking, are trademarks of The Manufacturers Life Insurance Company and are used by it, and by its affiliates under license.

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