What is TFSA ?
The Tax-Free Savings Account (TFSA) is an account that does not apply taxes on any contributions, interest earned, dividends, or capital gains, and can be withdrawn tax free.
This savings account is available to individuals aged 18 and older in Canada and can be used for any purpose.
You should consider a TFSA if:
- You want to save money for an emergency fund (or any other purpose) and see your savings grow without paying taxes on the investment income
- You’re looking for a tax-efficient way to increase your retirement savings beyond what’s in your RRSP
- You have money in a regular savings account and don’t want to continue paying taxes on the interest