Last year my wife and I took advantage of the ING Direct pre-TFSA deal where they paid extra interest on your pre-TFSA contribution which kind of made it like a TFSA. This year, ING is doing it again – if you have money earmarked for your 2010 TFSA contribution room then you can put the money into their TFSA “kick start” account and they will pay extra interest to make up for any taxes on the interest.
Of course one big difference this year is that the TFSA high interest account interest rate is 1.05% unlike the 3% offered last year. Needless to say, you aren’t going to save big bucks by taking advantage of this offer but in our case we save about $9 which is worthwhile since we were going to move this money into a TFSA anyway. Being able to move the money now is the best perk of this deal. ING will move the money into an actual TFSA on January 1, 2010.
Here is a refresher on the TFSA rules (Tax Free Savings Account).
We’re keeping our emergency fund in a TFSA
I used to be very anti-emergency fund but I’ve changed my mind on that subject. Although I still agree in theory that using a line of credit for an emergency fund is a more efficient way to manage your money – having survived several rounds of job cuts in the past year I have embraced the idea of having plain old cash as an emergency fund. Our EF is $20,000 which is about 5-6 months of expenses.
Earn $25 by setting up a new ING account
ING Direct has a promotion going on where you can use an existing customer Orange Key referral code and both you and the original customer will receive a bonus of $25.
To recieve the bonus you must do the following:
- Set up new account on the ING Direct main page.
- Enter the orange key code 33089336S1. See pic below.
- Fund the account with $100.