TFSA at a glance

A TFSA is a simple investment vehicle designed to help you save your money. Tax-free. However, just because it's simple, doesn't mean there aren't areas you might like to know more about. So we've created this who-what-where-when-why-how TFSA list.


Any Canadian resident, 18 years of age or older, with a valid Social Insurance Number can invest in a TFSA.


The annual TFSA contribution limit for 2019 is $6000. The annual TFSA contribution limit is $5,500** for years 2016 to 2018, $10,0000 for 2015, $5,500 for years 2013 to 2014, and $5,000 for the years 2009 to 2012, earning tax-free investment income and allowing tax-free withdrawals. Unlike RRSPs, TFSA deposits don't give you a tax-deduction. But they can be great when you've maximized your RRSPs, or just want to save outside RRSPs. TFSA investment products include:

The benefits of a TFSA include:

  • Flexibility: You can use money in your TFSA for any purpose.
  • Convenience: You can withdraw at any time (subject to investment restrictions), and withdrawals increase your contribution limit the following year. And, better still, unused contribution room can be carried forward to use in future years.
  • Tax-efficiency: Your TFSA grows tax-free and withdrawals are tax-free.
  • Non-disruptive: Withdrawals do not interfere with your eligibility for federal income-tested benefits such as Guaranteed Income Supplement, Old Age Security, the Age Credit, etc.


If you are already a member, purchase your TFSA here or meet with a Vancity Investment Professional.


There are a variety of times in life when you would benefit from a TFSA. Perhaps you are saving for a down payment to buy a home or a vehicle. Aiming to increase your retirement savings. Hoping to build an emergency reserve. Or, like many people, simply saving to add to your collection of pet iguanas. The point is: When you use your TFSA is entirely up to you.


Here are some reasons why you might look at purchasing a TFSA:

  • You have maxed out your RRSP contribution.
  • You need access to your savings before retirement.
  • You expect your marginal tax rates to increase, especially in retirement.
  • You are retired and looking for a tax-free place to save.
  • You'd simply like to have a tax-efficient means to save funds for those rainy-day needs.


Purchasing a TFSA is as easy as taking the time to complete a Vancity TFSA application.

Let's chat

Above and beyond what's mentioned above, there are other times when a TFSA or an RRSP (or both!) may present itself as a viable investment option. Perhaps you're wondering whether you should pay down your mortgage, contribute to your child's RESP, invest in a TFSA, invest in an RRSP, or some combination of all. Whatever the case, we're here to help you make those decisions. Contact us at 604-877-7000, meet with a Vancity Investment Professional or visit your nearest branch.

* 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.

Jumpstart® is a registered trade-mark of Vancouver City Savings Credit Union

** 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 TFSA 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.