• 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

TORONTO, Aug. 16, 2023 /CNW/ - 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."

Customers can access Scotia Smart Investor anytime on their mobile or online to track FHSA growth against their home ownership goal.

FHSAs can be opened in-person at Scotiabank branches or by calling 1-855-208-1564.

To learn more about the Scotiabank First Homebuyers Saving Account, visit the Scotiabank FHSA product page and the Scotiabank Advice+ Centre, an online hub providing financial resources including how to use the new Tax-Free First Home Savings Account to support your lifestyle and needs. Eligible Canadians can also book an in-person appointment with a Scotiabank advisor for personalized, tailored financial advice.

Scotiabank is a leading bank in the Americas. Guided by our purpose: "for every future", we help our customers, their families and their communities achieve success through a broad range of advice, products and services, including personal and commercial banking, wealth management and private banking, corporate and investment banking, and capital markets. With a team of over 90,000 employees and assets of over $1.3 trillion (as of April 30, 2023), Scotiabank trades on the Toronto Stock Exchange (TSX: BNS) and New York Stock Exchange (NYSE: BNS). For more information, please visit http://www.scotiabank.com and follow us on Twitter @Scotiabank.

SOURCE Scotiabank