Grow Your Savings, Tax-Free with a TFSA
Flexible, tax-free growth for your short-term goals or long-term financial future.
What is a TFSA?
A Tax-Free Savings Account (TFSA) is a flexible savings and investment account for Canadian residents that allows your money to grow completely tax-free. Contributions are made with after-tax dollars, so there is no tax deduction, but investment income—interest, dividends, or capital gains—is never taxed, even when withdrawn. This makes TFSAs highly efficient for both short-term and long-term savings.
The TFSA gives freedom to save for any goal—retirement, emergency funds, major purchases, or travel—without worrying about taxes. Its versatility complements other savings plans like RRSPs.
How TFSAs Work
Unlike RRSPs, TFSA contributions do not reduce your taxable income, but withdrawals are completely tax-free. You can invest in a wide range of eligible investments:
Investment Options
- Cash and Savings Accounts – safe, easily accessible funds
- Guaranteed Investment Certificates (GICs) – fixed-return investments
- Mutual Funds – professionally managed pooled investments
- Stocks and ETFs – shares or exchange-traded funds for growth
- Bonds – government or corporate debt securities
Contribution & Eligibility
To open a TFSA, you must be a Canadian resident and at least 18 years old. Annual contribution limits are set by the government, with unused room carrying forward indefinitely. Withdrawals are added back to your contribution room in the following year, providing exceptional flexibility.
As of 2024, the annual contribution limit is $6,500, but your personal limit may be higher if you have unused room from previous years.
Key Benefits of a TFSA
- Tax-Free Growth: Investment income grows tax-free, even on withdrawal.
- Flexible Withdrawals: Withdraw anytime without tax consequences; withdrawn amounts are added back next year.
- No Impact on Government Benefits: Withdrawals do not affect Old Age Security (OAS) or GIS eligibility.
- Versatile Investment Options: Choose from cash, GICs, stocks, ETFs, and bonds to match your goals.
- Supplementary Retirement Savings: Complements RRSPs, providing additional tax-free income or flexibility for short-term goals.
Why a TFSA Matters
A TFSA is not just a savings account—it’s a powerful financial tool allowing Canadians to grow wealth efficiently and access funds tax-free. Whether for retirement, emergency funds, or major purchases, a TFSA provides unparalleled flexibility. Starting early maximizes growth, while tax-free withdrawals offer peace of mind when you need your money most.
Start Growing Your Wealth Tax-Free Today
Take control of your savings with a TFSA tailored to your goals. Speak with our experts to understand your contribution room, explore investment options, and begin building your tax-free savings today.
Open Your TFSA Now