You can think of a TFSA like a basket, where you can hold qualified investments that may generate interest, capital gains, and dividends, tax-free. Once you’ve opened a TFSA, you can contribute to the account at any time, and earn interest or returns, tax-free — unlike a non-registered savings account.
Your TFSA can hold a variety of income-generating investments, including cash (like a savings account), mutual funds, stocks, bonds, and GICs. The types of investments you can add to the TFSA can vary, depending on your reasons for investing and your risk appetite.
When you contribute to a TFSA, it's important to be mindful of the TFSA contribution limit – the maximum amount that you can contribute to a TFSA in any given year. The annual TFSA contribution limit for 2023 is $6,500 and you can carry forward unused contribution room from previous years.
Why invest in a TFSA?
Comfort and convenience
A TFSA offers you the flexibility to save for various short-term and long-term goals, usually, with easy access to your money depending on the type of investment you hold.
Tax-free growth and withdrawals
You pay no tax on any investment income you may earn in your TFSA and you can withdraw funds from a TFSA without paying tax. The higher the return potential on your investments, the faster your savings may grow, tax-free.
Not just a savings account
Your TFSA can hold a variety of qualified investments, including cash, stocks, guaranteed investment certificates (GIC's) and mutual funds.
A flexible way to save
If you withdraw from your TFSA, you don't permanently lose your contribution room. You can re-contribute amounts you have withdrawn in the following year (or years).
Accounts that fit your goals
We offer several TFSA investment options, suited to your needs, based on your investment goals and risk appetite. See which account may be right for you.