A Tax-Free Savings Account (TFSA) is an investment option that lets you earn tax-free investment income. It’s a great way to complement your RRSP investment strategy or save for a short-term goal, such as a vacation or other big-ticket purchase.

Beginning January 1, 2016, the annual contribution limit is $5,500, from the 2015 limit $10,000.* You can enjoy tax-free savings on withdrawals made or income earned—no matter how much profit your investments yield.

* On December 7, 2015, the Minister of Finance tabled a ways and means motion which contained provisions to return the TFSA annual contribution limit to $5,500 from $10,000. The proposed changes will take effect on January 1, 2016 (subject to Parliamentary approval). The new dollar limit will be indexed to inflation for future years.

The Canada Revenue Agency has developed several questions and answers to explain the new provisions related to the TFSA dollar limit.

Types of TFSAs

A range of TFSA options are available to meet every investor’s needs, including savings accounts, a range of flexible, redeemable, and non-redeemable term deposits, and mutual funds, stocks, and bonds*.

Understanding TFSAs

We'll help you in understanding TFSA investing, getting great rates, and sorting out the differences are between TFSAs and RRSPs.

* Please read the Credential disclosure and mutual funds disclaimer.

* Mutual funds are offered through Credential Asset Management Inc. Mutual funds and other securities are offered through Credential Securities, a division of Credential Qtrade Securities Inc. Credential Securities is a registered mark owned by Aviso Wealth Inc.