Tax Free Savings Account

Tax Free Savings Accounts (TFSA) are an excellent addition to your investment portfolio. Our TFSAs offer competitive interest rates as well as fixed and variable terms to fit your lifestyle.

Unlike a RRSP, a TFSA allows you to make withdrawals tax-free and contributions are not tax-deductible. Any withdrawals made can be re-contributed the following year or in future years as long as you stay within your personal contribution limits.

Let's compare TFSAs & RRSPs

  TFSA RRSP
Purpose Savings for a wide range of financial goals Savings to provide income for retirement
Age Requirements You must be 18 years old to open and there is no maximum age to close There is no minimum age, however you must have income & filed a tax return. RRSP contracts must be closed as of December 31 in the year you turn 71
Tax Deduction Contributions are not tax deductible. All interest earned is tax free Contributions are tax deductible

Contribution Limits

The annual TFSA dollar limit for the years 2009, 2010, 2011 & 2012 was $5,000

The annual TFSA dollar limit for the years 2013 & 2014 was $5,500

The annual TFSA dollar limit for 2015 was $10,00

The annual TFSA dollar limit for the years 2016, 2017 & 2018 was $5,500

The annual TFSA dollar limit for the year 2019 was $6,000

The annual TFSA dollar limit for 2020 is $6,000

Any unused amounts from past years are carried forward. Any amounts withdrawn can be recontributed the year after the withdrawal.

The total eligible contribution for the TFSA since it was introduced in 2009 is $69,500

Based on a percentage of your previous years income. You will also have any unused contribution room that has been carried forward from past years.
Over Contributions Going over your contribution limit will result in a 1% penalty per month Going over your contribution limit will result in a 1% penalty per month
Interest Income Interest earned is not subjected to tax Interest earned is not subjected to tax until the funds are withdrawn
Withdrawals Withdrawals are tax free and are not included in your income. Amounts withdrawn can be recontributed the following year with the exception of over contributions Withdrawals are taxable and become part of your income.