A Tax Free Savings Account (TSFA) is a registered savings vehicle that allows you to earn investment income tax-free inside the account. Canadians aged 18 and older, with a valid SIN (Social Insurance Number), can contribute up to $5,500 every year in a TFSA. Your TFSA can hold any combination of eligible investment vehicles, such as cash, stocks, bonds, GICs and mutual funds. You do not have to pay taxes on earnings within the account (including interest, dividends or capital gains) or on money you withdraw from the TFSA. Contributions to the account are not tax-deductible, however, unlike contributions to your RRSP.
Agents Bank, Canadian TFSA Account Pick
Canadian Direct Financial’s “KeyReach TFSA Savings Account” lets you deposit and withdraw any time you want, all while earning tax-free returns with a great rate.
- Minimum investment $50
- Interest rate 80% Calculated on the daily closing balance
- Interest paid Monthly
- Earn tax-free interest.
- Withdraw or contribute at any time with no penalty