Investors may now open a Tax-Free Savings Account (TFSA) at Franklin Templeton Investments Corp., the company announced Wednesday.

Canada’s financial institutions are stepping up competitive strategies to get Canadians on board ahead of the official TFSA launch in January 2009.

Introduced by the Federal government and available at the beginning of 2009, the TFSA provides Canadians the opportunity to deposit up to $5,000 per year and carry over any unused contribution room.

“The new TFSA helps you save for your short-term and long-term goals, while avoiding paying tax on your investment income along the way, even if withdrawn,” said Dennis Tew, CFO of Franklin Templeton Investments Corp., in a release.

Contributions to Franklin Templeton’s TFSA can be made starting Jan. 2, 2009.

Earlier this week Manulife Financial Corp. and AIC Ltd. announced that clients could sign up for TFSAs through their financial advisors.

The pre-registration option is being offered by several other financial institutions as well, including Scotiabank, CIBC and ING Direct.

IE