TFSA (Tax-Free Savings Account)

A Tax-Free Savings Account (TFSA) is a registered savings account in Canada that allows you to save money and invest without paying taxes on the income earned within the account, or when you withdraw the money.

Anyone who is a resident of Canada and 18 years or older can open a TFSA. There’s an annual contribution limit set by the government.

TFSAs can hold various types of investments, such as savings accounts, mutual funds, stocks, and bonds.

This is a great way to save for both short-term and long-term goals, such as a down payment on a house or retirement.

• Related Terms: RRSP, Investment, Savings Account, Tax-Free