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TFSA (Tax-Free Savings Account)

How does a TFSA work?

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.

What products can you hold in a TFSA?

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.

How much can I contribute to my TFSA?

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 2021 is $6,000 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 You can re-contribute amounts you have withdrawn in the following year (or years).

TD Mutual Funds TFSA

  • Gives you access to certain mutual funds offered through TD Investment Services Inc.
  • Benefit from professionally managed mutual fund investments
  • Flexible savings options through a Pre-Authorized Purchase Plan

Great for: Investors comfortable with some risk.

TD Canada Trust TFSA

  • Gives you the option of investing in GIC’s while maintaining a High-Interest TFSA Savings Account
  • Access to competitive interest rates to grow your savings tax-free
  • Benefit from predictable returns

Great for: Investors seeking reliable growth.

TD GICs and Term Deposits

  • Fully protects your principal, with the option to choose from fixed-rate or Market Growth GICs
  • Access to a variety of GICs with different terms and features
  • Earn a guaranteed rate of interest

Great for: Investors who don't want to risk their principal.

TFSA at TD Direct Investing

  • Self-directed accounts
  • Power to select your investments and take advantage of market opportunities in Canada and the US.
  • Flexibility to hold a range of investment products in one account

Great for: Investors looking to manage their investment strategy and portfolio.

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