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What is a Tax-Free Savings Account?
A Tax-Free Savings Account is a type of bank account. "Tax free" means you do not pay tax on any interest you earn on the money in the account.
With a regular savings account, you have to pay tax on the interest you earn. With a registered Tax-Free Savings Account (TFSA), any interest you earn is non-taxable.
As well, you can take money out of your TFSA at any time without paying taxes on it.
Who is eligible for a TFSA?
To open a TFSA, you must:
*Residence for tax purposes is different from residence for immigration purposes. Find more information about your tax status in Canada.
Frequently Asked Questions
You can get more information about TFSAs on Canada Revenue Agency's website. For example,
For more information about your specific situation, contact the Canada Revenue Agency.
For More Information
- Tax-Free Savings Account (TFSA) - A guide explaining what a TFSA is and how to use it. From the Canada Revenue Agency.
- Investing Your Dollars - From the Canadian Bankers Association.
- Investing - Information about the different types of investments. From the Ontario Securities Commission.
- RRSPs - Information about opening an RRSP, how to invest the money inside it and how to withdraw funds from it. From the Ontario Securities Commission.
- RESPs - Education Savings for Your Child - A guide that explains the basics about Registered Education Savings Plans (RESPs). Available in many languages.
February 13, 2023