Self-Directed Tax-Free Savings Account (TFSA)

The TFSA built for Canadian investors

Account Highlights

With a self-directed TFSA from TD Direct Investing, you'll have the power to select your investments and take advantage of market opportunities in Canada and the US.

  1. Grow your investments tax-free
    Whether capital gains, dividends, or interest, your investment growth is not taxed.

  2. Pay no tax on withdrawals
    Withdraw your money at any time1 without incurring tax.

  3. Catch up on unused contribution room
    Carry unused contribution room forward into future years.

TFSA vs. RSP

Whether you're saving for retirement, homeownership or education, both RSPs and TFSAs can be a good option.

Comparison of differences between TFSAs and RSPs

TFSA

RSP

Primary purpose

Investing for any goal

Retirement

Annual contribution limit

$6,0002 PLUS amounts accumulated or withdrawn in previous years3

18% of previous year’s earned income (maximum limits apply), less pension adjustments

Contributions

Not tax-deductible

Tax-deductible

Unused contribution room

Carried forward

Carried forward

Growth

Tax-free

Tax-deferred

Withdrawals

You’re not taxed on withdrawals

Funds that are withdrawn are charged a prescribed withholding tax at the time of withdrawal, but will be ultimately taxed as income at your marginal rate. This may affect government benefits such as old age security

Withdrawn amounts

Added to contribution room in future years

Contribution room is lost for amounts you withdraw

There's more than one way to invest tax-free

  1. Stocks
    Trade on Canadian and US markets, including TSX, NASDAQ, and NYSE

  2. Invest in Canadian and US mutual funds, including D-Series and TD e-Series Funds®
  3. ETFs
    Equity, bond or commodity exchange-traded funds.

  1. Options
    Basic options trading including covered calls, long calls and puts.

  2. Fixed Income
    Selected investments include bonds and other fixed-income products.

  3. GICs
    Secure investments that promise a defined amount at the end of their term.

TFSA Articles


Open an account online – it's fast and easy

Whether you're new to self-directed investing or an experienced trader, we welcome you.

  • Apply online

    It's easy to open a cash, margin, RSP, or TFSA account.

  • Call us

    We're here for you. Monday to Friday, 7 am to 8 pm ET

    1-800-465-5463 1-800-465-5463
  • Book an appointment

    Let's chat, face-to-face at a TD location convenient to you.


Have a question? Find answers here