IA Clarington Investments Inc. is accepting applications for its Tax-Free Savings Account (TFSA), the company announced Monday.

Early account set-up is being offered to allow investors the opportunity to have their accounts ready for contributions on the national launch date of Jan. 2, 2009.

“This important savings vehicle is being introduced at a critical time,” said David Scandiffio, president of IA Clarington, in a release. “With the recent unprecedented market volatility, these accounts should help encourage additional savings and maximize the after-tax returns for Canadian investors.”

Starting in January 2009, Canadians 18 and older (based on the provincial age of majority) can contribute up to $5,000 per year into a TFSA. A TFSA allows investors to put their savings into eligible investments without paying tax on any investment income or growth they earn. Through a TFSA, investors have the additional flexibility to withdraw savings at any time and for any purpose, allowing them to put money aside for important purchases throughout their lifetime: renovations, family vacations, schooling etc.

Toronto-based IA Clarington Investments Inc., a subsidiary of Quebec City-based Industrial Alliance Insurance and Financial Services Inc.

IE