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TFSAs

Earn interest on your hard earned savings, tax-free, and reach your savings goals faster.
Young family packing for a vacation, trying to close suitcase.

Tax Free Savings Account

Earn interest on your hard earned savings, tax-free, and reach your savings goals faster.

What is a TFSA?

A Tax Free Savings Account (TFSA) is an investment that lets you earn interest on your money without having to pay tax on that interest, letting you make the most out of every dollar earned. There are annual contribution limits, but unused contribution room can be carried forward. You can make withdrawals from your TFSA at anytime, without tax consequences and the amount you withdraw can be reinvested the next calendar year. So you can save for that big trip, then start saving for your next goal. 

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Key Information

Eligibility

  • Any resident in Canada aged 18 or older and has a valid Social Insurance Number (SIN) is eligible to open a TFSA.
  • You do not need to have earned income to contribute to a TFSA.

Contributions & Withdrawals

  • Investment income earned in a TFSA will not be taxed allowing you to enjoy every dollar earned.
  • TFSAs provide maximum flexibility in savings management.
  • There are many options for TFSA investments, including daily savings accounts, traditional term deposits, index-linked term deposits or mutual funds*.
  • Contributions to a TFSA can be made at anytime.
  • Contributions to a TFSA are not tax deductible for income tax purposes.
  • Unused TFSA contribution room can be carried forward to future years.
  • When you withdraw money from a TFSA, the amount is added back to your contribution room the following year.
  • Eligible deposits in registered accounts have unlimited Deposit Insurance coverage through FSRA.

Your Guide to Understanding the Tax Free Savings Account - View PDF

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TFSA Contribution Limits

Annual contribution limits for TFSAs are set by the government. The annual TFSA limit for 2021 is $6,000; the maximum lifetime contribution to date is $75,500.

Below are the annual contribution limit amounts.

year(s)limit
2009 - 2012$5,000
2013 - 2014$5,500
2015$10,000
2016 - 2018$5,500
2019 - 2021$6,000


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Additional Information

  • You must confirm your TFSA contribution room by accessing “My Account” on the CRA website or by calling the CRA Tax Information Phone Service (TIPS) at 1-800-267-6999.
  • You are responsible of ensuring the maximum contribution limit is not exceeded. Over-contributions will result in a penalty tax of 1% per month for each month that the excess contribution remains in the TFSA.
  • You may withdraw funds at any time and at any age, unless restricted by the investment terms (example: 3 year non-redeemable Term Deposit).
  • Upon death, the TFSA can be transferred to a spouse’s TFSA if they have been designated as the Successor Holder.

*Mutual funds are offered through Credential Asset Management Inc. Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. Please read the prospectus before investing. Unless otherwise stated, mutual fund securities and cash balances are not insured nor guaranteed, their values change frequently and past performance may not be repeated. ®Credential is a registered mark owned by Aviso Wealth Inc. NEI Investments is a registered trademark of Northwest & Ethical Investments L.P. ("NEI LP"). Northwest & Ethical Investments Inc. is the general partner of NEI LP and a wholly-owned subsidiary of Aviso Wealth Inc. ("Aviso").

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