Tax-free savings account (TFSA)
Grow your savings tax-free in an account that's easy to access.
What is a TFSA?
A TFSA is a registered savings account with numerous benefits. Your money is there when you need it
Your TFSA contributions and the generated earnings in your account are not taxable.
Withdraw money at any time
Your TFSA withdrawals are tax-free and don't affect your government benefits and credits. Withdrawn amounts are added back to your contribution room for the following year.
Build an emergency fund
Set up automatic transfers to your TFSA to take the work out of saving. Aim to set aside 3 to 6 months' worth of your net pay to cover unexpected expenses.
Top up your retirement savings
You can keep your TFSA open into retirement and continue growing your money. Since your withdrawals aren't taxed and have no impact on your government benefits, a TFSA is a good source of additional retirement income.
How a TFSA works
You must be 18 or older and have a Social Insurance Number (SIN) to open a TFSA. Unlike an RRSP, there is no age limit to make TFSA contributions.
2024 TFSA contribution limit
The 2024 TFSA contribution limit is $7,000, plus withdrawals you made in 2023 and your unused contribution room from previous years.
Accumulating contribution room
Your contribution room begins accumulating each year from when you turn 18.
So if you've always lived in Canada, have never contributed to a TFSA and were 18 or over in 2009, your cumulative contribution room is $95,000.
TFSA yearly contribution room
- 2009 to 2012: $5,000
- 2013 and 2014: $5,500
- 2015: $10,000
- 2016 to 2018: $5,500
- 2019 to 2022: $6,000
- 2023: $6,500
- 2024: $7,000
You never lose contribution room. If you withdraw money from your TFSA one year, that amount is added to your contribution room for the following year. For example, say you have $25,000 in your TFSA and take out $10,000 for renovations. You can then contribute this $10,000 the following year, plus the annual dollar limit for that year.
Calculate your TFSA contributions
Have a project in mind or want to build a safety net? Use our calculator to determine how much to put in your TFSA to reach your goals.
How to contribute to the TFSA
Permitted investments for a TFSA
Find out which types of investments you can hold in your TFSA.
Guaranteed fixed-rate investments (term savings)
Enjoy a known return on your investment from day one. Both your capital and interest are guaranteed.
Switch to online brokerage
Want to explore online brokerage to invest on your own? Whatever your level of investment knowledge, we offer everything you need to make informed decisions and invest with confidence:
- No-fee online transactions for stocks and exchange-traded funds (ETFs)
- State-of-the-art trading platforms
- Comprehensive training
- Powerful analysis tools
Responsible investment pays off
Commit to a sustainable and equitable economy by investing in businesses that value the environment, the community and diversity. With our socially responsible investments, you benefit from good potential returns while taking action for the future.
RRSP or TFSA: Which one to choose?
Explore the benefits of these 2 plans and find out which one best meets your needs.
The 2024 TFSA dollar limit is $7,000, plus withdrawals you made in 2023 and your unused contribution room from previous years.
Any excess contributions are subject to a 1% tax per month or 12% per year. This penalty applies as soon as you go over your contribution room and continues for every month the excess amount stays in your TFSA. The penalty tax stops when you withdraw the excess amount.
Yes. Since TFSA investment income and withdrawals are tax-free, a TFSA maximizes your savings to buy a home.
If you're buying a first home, the following 2 options may be more suitable for your down payment:
Contribute to your TFSA
Open your TFSA on AccèsD and start contributing today.
514-224-7737 Phone number of customer service for the Montreal area. This link opens your phone app. (514-CAISSES)
Elsewhere in Canada:
1-800-224-7737 Phone number of customer service for Canada. This link opens your phone app. (1-800-CAISSES)
We can also call you when it's convenient.
With an advisor
Book an appointment on AccèsD if you're a member, and meet with an advisor online, in person or over the phone.