ST. CATHARINES, ON, Feb. 26 /CNW/ - The new tax free savings accounts
introduced in today's federal budget are welcome recognition of the importance
of personal savings to financial well-being and security, according to Sean
Jackson, President and CEO of Meridian Credit Union.
"As part of the free financial coaching that we offer, we encourage our
Members to use a balanced strategy combining savings and credit to achieve
their goals and financial security. The federal government has underscored the
importance of savings with these accounts," Jackson said.
Under the plan, interest or investment income on accounts of up to $5,000
is tax free.
"We believe that this will encourage responsible, long-term savings for
higher education, weddings or a down payment on a first home. We are happy
that the federal government is recognizing the importance of financial
planning outside RSPs," Jackson said.
In addition, Jackson said the new accounts will provide more capital for
credit unions like Meridian to invest in communities in the form of
residential mortgages, loans to small business and other initiatives.
"Meridian is focused on investing in the communities we serve, including
St. Catharines. This will provide additional capital to help us do this,"
Meridian will introduce the tax-free accounts before they become
effective in 2009.
For further information:
For further information: Scott Windsor, Senior Manager -
Corporate/Community Relations and Employee Communications, Meridian Credit
Union, (416) 597-5124