Majority of Canadians not taking advantage of saving tax free

ING DIRECT pays double interest to kick start Canadians' TFSA's

TORONTO, Oct 6 /CNW/ - Canadians' appetite for Tax-Free Savings Accounts (TFSA) does not seem to be increasing despite the opportunity this investment offers to help them build their retirement savings. While one-third of Canadians have contributed to a TFSA since its introduction almost two years ago, according to a recent nationwide poll conducted by Angus Reid Public Opinion on behalf of ING DIRECT, 53% don't have a TFSA and 14% are unaware of the tax saving vehicle. More concerning is that of those who do not currently have a TFSA, half (52%) of them don't plan to open one during the remainder of this year or next year.

As the brand that advocates the importance of saving your money, ING DIRECT is encouraging Canadians to consider the significance TFSA's can have on an investment portfolio and is paying double interest on its 2011 TFSA Kick Start Account between October 1 and December 31, 2010 as a reward for planning ahead to save tax-free.

"The ability to save tax-free is one of the most significant vehicles Canadians have been given to build their investment portfolios," said Peter Aceto, President and CEO of ING DIRECT. "We are thrilled to give Canadians the chance to invest early again this year and hope our campaign demonstrates how people can make the most out of tax-free saving over the long term. The earlier in the year contributions are made, the more beneficial tax-free saving can be. Canadians owe it to themselves to find a way to incorporate TFSA's into their investing."

How the 2011 TFSA Kick Start Account works:
On December 31, 2010, Clients will receive a bonus equal to the interest their account earns between October 1 and December 31, 2010. (Current rate is 1.50%) This should more than cover the income taxes a Client may have to pay during this period for this account. The maximum contribution amount for this 2011 TFSA Kick Start Account is $5,000. It's ING DIRECT's way of giving savers the benefits of next year's tax-free savings right away.

On January 1, 2011, the money in a Client's 2011 TFSA Kick Start Account will be transferred to an official Tax-Free Investment Savings Account where it will grow tax-free.

For more information on the Kick Start Tax-Free Savings program, visit ingdirect.ca/kickstart

Survey Methodology
From September 29 to September 30, 2010, Angus Reid Public Opinion conducted an online survey among 1,009 randomly selected Canadian adults who are Angus Reid Forum panelists. The margin of error—which measures sampling variability—is +/- 3.1%, 19 times out of 20. The results have been statistically weighted according to the most current education, age, gender and region Census data to ensure a sample representative of the entire adult population of Canada. Discrepancies in or between totals are due to rounding.

About ING DIRECT
ING DIRECT is Canada's leading DIRECT bank with over 1.7 million Clients and more than $29 billion in total assets. ING DIRECT gives the power of saving to all Canadians by offering high-value, simple products such as high interest savings accounts with no fees or service charges, and low rates on mortgages. Low cost, index based mutual funds are sold through ING DIRECT Funds Limited. ING DIRECT has been operating in Canada since 1997, and paid more than $4.5 billion in interest to Clients. ING DIRECT is open for banking 24 hours a day, 7 days a week, at ingdirect.ca, on mobile devices at m.ingdirect.ca or by calling 1-800 ING DIRECT (1-800-464-3473)

Follow Peter Aceto on Twitter at: Twitter.com/CEO_INGDIRECT
And find ING DIRECT at: Facebook.com/SuperStarSaver; Twitter.com/SuperStarSaver; YouTube.com/SuperStarSaver

For further information:

Lisa Naccarato, ING DIRECT
416-758-5072
[email protected]

Lynnette Visaya, ING DIRECT
416-758-5544
[email protected]