Tax Free Savings Accounts

Tax Free Savings Accounts

​​​​​​​​​​​​​​​​​​​​A Tax Free Savings Account (TFSA) is a Government of Canada-approved savings account that allows taxpayers to earn investment income tax-free. You can set money aside in eligible investments and watch those savings grow tax-free throughout your lifetime. 
 
To make saving easier, an automatic transfer can be set up from your account to your TFSA each month. Regardless what you’re saving for – vacation, car, emergency fund, or to supplement your RRSPs or RESPs – our investment experts can explain your options and help you choose the best investment.
 
TFSA Facts:
  • Must be a Canadian resident age 18 and older to contribute
    Contribution limit for 2017 is $5,500 (previously $5,500 in 2016, $10,000 in 2015, $5,500 in 2013 and 2014 and $5,000 from 2009 to 2012), and your unused contribution room is carried forward and accumulates in future years
  • Contributions are not tax deductible but the investment income earned, including capital gains, is tax-free when withdrawn
  • Withdraw funds at any time for any purpose
  • Make contributions to a partner’s TFSA
  • Withdrawals can be re-contributed the following year without affecting your annual contribution limits –
    re-contributing in the same year may result in an over-contribution amount and subject to penalty tax
  • Neither income earned in a TFSA nor withdrawals affect your eligibility for federal benefits and credits such as the Guaranteed Income Supplement or Canada Child Tax Benefit 
  • For seniors, the TFSA will also provide you with a tax-free savings vehicle to meet ongoing savings needs, even after you reach age 71 and are required to convert your RRSPs into a retirement income option
  • Your TFSA contribution room can be accessed on the Canada Revenue Agency (CRA) website

Wondering if a TFSA or RRSP is better for you? Learn more about the key differences​.