Self-Directed Tax-Free Savings Account (TFSA)*

The TFSA built for 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.

  • Grow your investments tax-free
    Whether capital gains, dividends, or interest, your investment growth is not taxed.
  • Pay no tax on withdrawals
    Withdraw your money at any time1 without incurring tax.
  • 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.

TFSA

Primary purpose

Investing for any goal

Annual contribution limit

$5,5002 PLUS amounts accumulated or withdrawn in previous years3

Contributions

Not tax-deductible

Unused contribution room

Carried forward

Growth

Tax-free

Withdrawals

You’re not taxed on withdrawals

Withdrawn amounts

Added to contribution room in future years

Primary purpose

Retirement

Annual contribution limit

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

Contributions

Tax-deductible

Unused contribution room

Carried forward

Growth

Tax-deferred

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Funds that are withdrawn are charged a prescribed withholding tax at the time of withdrawal, but will be ultimately taxed as income at your marginal rate.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Withdrawn amounts

Contribution room is lost for amounts you withdraw

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

  • Stocks
    Trade on North American markets, including TSX, NASDAQ, and NYSE
  • Mutual Funds
    Invest in North American mutual funds, including D-Series and TD e-Series Funds®
  • ETFs
    Equity, bond or commodity exchange-traded funds.
  • Options                                                 
    Basic options trading including covered calls, long calls and puts.
  • Fixed Income
    Selected investments include bonds, GICs and other fixed income products.


Back to top