A tax-free savings account lets you save up to $6,000/year1 for any purpose without paying taxes on the investment growth. Whether you’ll need those savings in a few years or well into the future, a TFSA is a smart way to save your money and see your savings grow tax-free.
You may contribute up to $6,000 for this year. If you're just starting a TFSA, you can also contribute for past years, assuming you lived in Canada and were at least 18 in those years.
Not sure which savings option is the best one for your needs? Both TFSAs and RRSPs provide tax advantages, but in different ways.
Whatever you want to save for – your retirement, your first home, an emergency fund, a dream vacation or even a wedding – a TFSA can help you reach your goal. An advisor can show you how a TFSA can fit into your total financial picture, and can help you choose your investments to make the most of the benefits offered by this powerful savings vehicle.
1The TFSA contribution limit has changed over the years. 2009-2012 - $5,000; 2013-2014 - $5,500; 2015 - $10,000; 2016-2018 - $5,500; 2019 - $6,000. For future years, the amount may be increased in increments of $500 to correspond with the rate of inflation.
2Beneficiary designations are not permitted in Quebec for GIC or mutual fund TFSAs.