A Tax-Free Savings Account (TFSA) will help you save money for short and long-term goals. Because it’s tax-free, you pay no taxes on the interest or investment income earned.
The contribution amount for 2021 is $6,000.
Reach your goals faster with a TFSA.
What is a TFSA?
Any Canadian, 18 years or older can contribute to a TFSA.
Interest earned in a TFSA is NOT reported on your T5- Statement of Investment Income.
Contributions are NOT tax deductible.
Contributions can only be in the name of one owner.
Withdrawals of contributions and/or interest income are not taxable.
Withdrawals of contributions and/or interest income will increase the unused contribution room in the following calendar year. Re-contribution in the same year may result in an over-contribution amount, which is subject to a penalty tax.
Unused contribution room can be carried forward. If you don't contribute the maximum amount in a given year, you can carry forward your unused contribution room indefinitely.
For example, if you contribute $3,000 to your TFSA in 2009, your contribution room for 2010 will be $7,000 ($2,000 carried forward from 2009 plus $5,000 for 2010).
TFSAs are separately insured for their full amount by Financial Services Regulatory Authority of Ontario (FSRA)
Enjoy the benefits of a TFSA
- Grow your money – Because your TFSA is tax-free, your earnings will be tax sheltered.
- No age limit – Unlike the RRSP, you can contribute to your TFSA for as long as you’d like.
- Use it for short and long-term goals – You don’t have to repay a TFSA withdrawal.
- Carry over withdrawals – Any withdrawal you make adds extra contribution room the following year.
- Unused contribution room can be carried to future years.
- It can hold a number of investments – Term deposits, mutual funds and stocks included.
Whether you're saving for retirement, a new car or a dream vacation, our experienced team will tailor their advice to help you maximize your savings to get there.
Our TFSA Calculator will help you figure out how much you could save for your life goals when you invest in a Tax-Free Savings Account.
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