Tax-Free Savings Account (TFSA)

Every Canadian resident over the age of 18 who has a valid Social Insurance Number (SIN) can open a TFSA in Canada. That easy availability makes it one of the best tax-free savings accounts.

The initial deposit must be $1,000 or more. If you don’t have $1,000, no problem. You can open a TFSA Savings Account. Deposit as little or as much as you like and save, tax-free, for that $1,000 initial deposit. Apply today, or if you already have a registered investment with us, you can open a tax-free savings account through digital banking. Go to Accounts > Open Account > Registered > TFSA Savings Account.

Yes! A TFSA is intended to serve as a long-term solution for saving money. You can and should set money aside in this account to grow and help you reach your financial goals, without having to pay tax on the income you earn. The only thing to consider here is the annual TFSA contribution limit.

Canadian TFSA accounts allow withdrawals at any time unless the investments selected require a certain amount of time to reach maturity. Similarly, a TFSA doesn’t have a minimum balance by itself, but certain investments may require one.

Even though you may have the option, making many withdrawals in the short term is generally not the best idea. Ideally, you will only take funds from a TFSA for a defined goal or major emergency. Using a TFSA as a source of short-term funds can mean missing out on the benefits.

Plus, your TFSA doesn’t offer the daily conveniences of a regular chequing account. 1) You can’t access it with your debit card at POS terminals or ATMs, 2) you’re not able to send Interac e-Transfer® transactions from it, and 3) you can’t write cheques from your TFSA.

Great! We’re here to help. Review TFSA options on this very page and apply for an account in minutes!

No, only contributions to a registered retirement savings plan are. But withdrawals from a TFSA aren’t subject to withholding tax.

Any amount you withdraw will be added to your contribution room for the following year. The maximum TFSA contribution dollar limit for 2026 is $7,000. However, if you contribute less than the annual contribution limits, your unused contribution room may be carried forward indefinitely and used in future years.

You can contribute up to $7,000 a year or carry it forward to future years.

To obtain the most up-to-date information about your TFSA contribution room, you can:

• Visit the CRA website and choose My Account or My CRA after you log in,
• Call the Canada Revenue Agency Tax Information Phone Service at  1.800.267.6999 (TIPS), or
• View your most recent Notice of Assessment

The tax-free savings account (TFSA) is one of the very top options when it comes to tax advantages. When you open a TFSA, you're free from paying additional taxes on contributions to the account because you will use post-tax income.

Additionally, you don't have to worry about the income earned in the account (interest, capital gains, etc.) which would otherwise be subject to income tax. It all grows tax-free!

With those positives in mind, it's clear that exploring TFSA options is in your best interest.

It’s important to note that there’s no guarantee that a TFSA will help you meet all of your savings goals or meet all financial obligations. The available TFSA contribution room and the lack of tax deductions can be drawbacks for some people.

With that said, a TFSA still has major tax advantages and the ability to easily withdraw funds when needed make it a popular option across Canada. As you plan your approach to saving and investing, keep a TFSA in mind.