-   The new TFSA will help Canadians in all walks of life invest in a
        tax-effective wayTORONTO, Sept. 29 /CNW/ - Scotiabank is the first major bank to offer
Canadians the opportunity to pre-register for a Tax Free Savings Account
(TFSA) allowing them to beat the rush on January 2, 2009. The TFSA is designed
to become a part of Canadians' overall financial plan by helping them save and
invest after-tax dollars in a tax-effective way.
    "The TFSA gives Canadians another way to save and round out their
financial portfolio," said Barb Mason, Executive Vice-President, Wealth
Management, Scotiabank. "We know that this investment tool is going to be a
popular choice for Canadians next year so we wanted to give them the option to
open their account now and be ready to start using it come the beginning of
2009."
    Starting January 2nd, 2009, Canadians will be able to save $5,000 in a
TFSA each year. All investment income earned inside the TFSA (capital gains,
interest, dividends) are tax free for life. Unused contribution room is
carried forward indefinitely and amounts withdrawn top up future contribution
room. The account can be opened at age 18 and be kept for a lifetime. The TFSA
will offer the flexibility of a short-term savings vehicle with a longer-term
investment plan, all in one.
    "The TFSA will give Canadians an opportunity to save money and have it
grow tax-sheltered like an RRSP with the flexibility of a savings account,"
said Gillian Riley, Managing Director and Head of Retail Deposits, Scotiabank.
"This account will be a great tool, not to replace other traditional
investments but to enhance the earning power of their portfolio."
    Ms. Riley has some simple strategies for Canadians in the prime of their
saving years and looking to incorporate the TFSA into their investment
portfolio:-   Use the TFSA as a rainy day fund: It is just as important to save for
        what you know is going to happen in the future as it is to save for
        what you can't foresee. Canadians can take advantage of the
        flexibility of the TFSA and have their rainy day funds grow tax-
        sheltered with the comfort of knowing that they are easily
        accessible.

    -   Put extra savings in a TFSA: Canadians are often most serious about
        saving for retirement in the last 5 - 10 years of working. If you
        have maximized your annual RRSP contribution and are getting a large
        tax refund, consider putting that money into a TFSA. The income will
        grow tax-sheltered.

    -   Make withdrawals out of your TFSA rather than your RRSP: Income
        received from a TFSA account will not impact income-tested benefits
        such as the Guaranteed Income Supplement, Old Age Security and the
        Age Credit. Canadians who receive these benefits could potentially
        reduce their taxes."When thinking about the TFSA and how Canadians can apply it to their
personal financial situation, I would recommend that they look at how they use
their traditional savings account and consider using the TFSA instead to earn
tax-free growth," said Ms. Riley. "The TFSA is a tool that should inspire
Canadians to save because of its added benefits and versatility."
    To help our customers get information about this new savings plan,
Scotiabank has also launched an online interactive TFSA Customer Information
Centre located at www.scotiabank.com/taxfreesavings. The Centre provides
details on the features and benefits of the TFSA and offers advice on how the
TFSA can be used to meet specific customer needs. Customers can compare the
TFSA to an RRSP and use the TFSA calculator to estimate their tax savings.
Customers can also see how their tax savings can translate into more money
saved over time. Customers can also open an account online at the TFSA
Customer Information Centre.

    Scotiabank is one of North America's premier financial institutions and
Canada's most international bank. With more than 60,000 employees, Scotiabank
Group and its affiliates serve approximately 12.5 million customers in some 50
countries around the world. Scotiabank offers a diverse range of products and
services including personal, commercial, corporate and investment banking.
With $462 billion in assets (as at July 31, 2008), Scotiabank trades on the
Toronto (BNS) and New York Exchanges (BNS). For more information please visit
www.scotiabank.com.