IBKR: Interactive Brokers Now Offers Tax-Free Savings Accounts for Homebuyers in Canada

Interactive Brokers has introduced the First Home Savings Account (FHSA), a new tax-free investment tool available through its Canadian arm.Created for first-time homebuyers, the account reportedly combines tax benefits with access to a range of investment options, expanding Interactive Brokers' retail offerings in Canada."Buying a home is one of the biggest financial milestones, and we're pleased to offer a savings solution that helps Canadians reach this goal," commented Steve Sanders, EVP of Marketing and Product Development at Interactive Brokers.Tax-free home investment plansThe FHSA is a government-registered plan that allows eligible Canadians to save up to CAD 40,000 for a home purchase, tax-free. Contributions of up to CAD 8,000 per year are tax-deductible, and any capital gains, dividends, or interest income generated inside the account remain untaxed, provided the funds are used to buy a qualifying first home.According to the company, for those who ultimately decide not to purchase a home, the account doesn't go to waste. Unused funds can reportedly be rolled over into a Registered Retirement Savings Plan, maintaining their tax-deferred status and potentially contributing to long-term financial goals.Additionally, investors can put their funds to work in US and Canadian stocks, options, and even US bonds. This adds an extra layer of flexibility for individuals seeking higher returns while preparing for a major life purchase.Eying Digitally Savvy First-Time Buyer"Our FHSA provides tax-free investment growth, low costs, and access to global markets, empowering Canadians to maximize their savings potential," added Sanders.The platform's low-cost structure and absence of platform fees are expected to make it an appealing option for young investors looking to grow their savings efficiently.With the new FHSA, Interactive Brokers aims to meet a growing demand in Canada, where rising housing costs have pushed many prospective buyers to explore more efficient savings vehicles.Besides the real estate space, Interactive Brokers is also boosting its offerings in the digital asset space. Recently, the company expanded its cryptocurrency offering with the addition of Chainlink (LINK), Avalanche (AVAX), and Sui (SUI) for retail and institutional clients. IB already supports major tokens, including Bitcoin, Ethereum, Solana, and Cardano.This article was written by Jared Kirui at www.financemagnates.com.