Tax-free savings account (TFSA)
Grow your savings, tax-free.
And access your money whenever you want.
What’s a TFSA and why get one?
When you invest your money in a tax-free savings account, you don’t pay tax on the interest you earn. It’s often used alongside an RRSP or on its own. Open a TFSA if you are:
Saving for a big purchase
Car, vacation, wedding, or if you’re saving just to save. You can withdraw from a TFSA tax-free, at any age, so it’s more flexible than an RRSP.
Expecting a higher salary later
If you think you’ll be in a higher tax bracket later, start with a TFSA. When you start earning more, save with an RRSP and reduce your income tax.
Starting to save
Building an emergency fund? Investing for the first time? TFSAs aren’t complicated. You can start earning with just $1.
How a TFSA works.
TFSAs are an easy way to start saving. And the sooner you start, the more you’ll save. Here are the basic steps:
Choose an investment “vehicle”
These are the actual investments that go into your account. They can be low-risk, like savings accounts or term deposits; or higher-risk, like stocks.* Mutual funds* sit in the middle and have a variety of risk levels. You can also choose a mix.
We specialize in offering responsible investments vetted for proven positive impact and strong financial performance.
New to investing? Check out our guide to investing.
Open a TFSA
Ready to get started? Whether you’re opening your first account or adding an TFSA, we’ve made it easy. Book an appointment with an advisor, or if you are brand new to Vancity open your account online in just a few steps. Prefer to invest on your own? Explore our ways to invest online.
Please note that to be eligible you must be a Canadian resident 18 years of age or older with a valid SIN number.
Make your deposits
Put money into your investment or multiple investments. Every year, the government gives you a contribution limit. For 2025, you can contribute up to $7,000 plus any unused amounts you’ve accumulated since you became eligible.
Check on your progress
How often depends on what investments you choose and their risk levels. We recommend reviewing your investments at least twice a year by booking a portfolio review.
Earn money and pay no taxes
TFSAs allow for tax-free gains on your investments.
Withdraw, re-invest, invest more
Flexibility is the beauty of TFSAs. Amounts you withdraw are added back to your contribution room the following year so you can keep investing.
Talk to a pro.
Let our experts help with your investment planning and access our full suite of investment tools and products.
New to Vancity?
Open a TFSA Jumpstart™ High Interest Savings account online in minutes.
Invest online.
Manage your money with self-directed investing and guided portfolios.
TFSA vs RRSP? Which should you invest in?
Truth is, both are good choices. In many cases, it’s a great idea to have both RRSPs and TFSAs.
RRSP
RRSP contributions give you an immediate tax deduction as well as tax-deferred growth, but withdrawals are fully taxable.
TFSA
TFSA contributions give you no tax deduction, but all growth and withdrawals are tax-free to you.
Remember, the factors influencing the best choice for you can change over time, so it’s important to review your situation regularly with your financial advisor to ensure your savings reflect both your current circumstances and reasonable expectations of the future.
Mutual funds and other securities are offered through Aviso Wealth, a division of Aviso Financial Inc. Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. Please read the prospectus before investing. Unless otherwise stated, mutual funds, other securities and cash balances are not covered by the Canada Deposit Insurance Corporation or by any other government deposit insurer that insures deposits in credit unions. Mutual funds and other securities are not guaranteed, their values change frequently and past performance may not be repeated.