53% of Canadians surveyed still haven’t opened a Tax-Free Savings Account (TFSA) and that 42% of those without a TFSA don’t intend to open one this year.

That’s according to new survey from online bank ING Direct.

For the 52% of those surveyed who still don’t have a TFSA, not having money to contribute was cited as the main reason they haven’t opened one.

The survey also found that close to a third of Canadians admit they still don’t understand how TFSAs work, while slightly more that a third are unsure about the current annual contribution limit.

Retirement savings continue to be the main reason Canadians use TFSAs, while a third of younger Canadians (18-34 years) plan to use their TFSA for purchasing a home.

Of the 47% of survey respondents who have opened a TFSA, nearly one in five are approaching the contribution limit.

When looking at how Canadians are contributing, a lump sum deposit one to two times a year is most popular, while a quarter of those surveyed contribute to their TFSA on a monthly basis.

ING Bank of Canada, operating under the trade name of ING Direct, is a wholly owned subsidiary of The Bank of Nova Scotia.