What is a TFSA?
A Tax-Free Savings Account (TFSA) is a powerful registered investment account you can use to save for any big-ticket item or goal – tax free. If you like more flexibility and less taxes, consider opening a TFSA.
Here’s why 60% of Canadians invest in a TFSA:
- Pay no taxes on any investment earnings
- Contribute even if you’re retired or not employed
- Contribute for as long as you want to—there’s no age limit
- Make up for missed contribution room from previous years indefinitely
- Withdraw your money at any time for any reason
- Use a TFSA to save for anything while also saving for retirement in an RRSP
Exclusive Benefits When You Invest With Us
Here’s how an TFSA can help you save for your Goals:
Free Digital Tools to Help You Plan & Save
See all your money in one place, get tips and save automatically with smart tools
Advice When You Need It
Speak with an advisor in-person, by phone or over video – whether you’re investing $50 or $5,000.
How a TFSA Works
From opening an account—to withdrawing money—here’s how a TFSA can help you reach your goals
A TFSA is a type of registered investment account, which means you can hold income-generating investments in it versus just cash (like a savings account).
The types of investments you can buy in your TFSA depend on where you open an account. You also want to consider your reasons for investing and your appetite for risk when choosing investments.
Unity Financial Services: Ideal if you want investment advice and access to an advisor – in-person, by phone or over video
We offer segregated funds, GICs and high interest savings deposits with the help of our partner advisors
We also offers stocks, options, Exchange-Traded Funds (ETFs), mutual funds, bonds and GICs through our affiliate partners
We offer ETF portfolios designed for different investors (each portfolio holds a diverse mix of ETFs) with the help of our affiliates
Since the money you earn from investments you hold in a TFSA (interest, dividends or capital gains) is not taxed, it has the opportunity to grow faster than it would in a non-registered account.
Another way to save faster is by setting up regular (weekly, monthly, etc.) automatic contributions into your TFSA.
While you can take money out of a TFSA for any reason (a car, your wedding, retirement, etc.), your timing does depend on the investments you hold in it. For example, non-redeemable GICs must be held until maturity.
Here are a few other things to know:
You won’t have to pay tax on money you take out.
Withdrawals won’t reduce benefits and credits you’re eligible to receive from the Federal Government, such as Old Age Security (OAS).
Withdrawals get added back to your unused contribution room. However, you have to wait until the next year or later to re-contribute these amounts.
One of the best things about a TFSA is you can use it to save for anything you want. For tips and advice to help reach your goals, explore our “how to” guides:Start Saving Money (Just Because)
Save for a Child’s Education
Save to Buy a Home
Save for a Big-Ticket Item
Save for Retirement
Numbers to Know
$0
Taxes you’ll pay on TFSA earnings
$7,000
2024 TFSA contribution limit
$95,000
Maximum TFSA contribution limit
Contribution Rules, Fees & More
TFSA Rules and Contributions
TFSAs are extremely flexible, but there are a few details you should know.
Deciding between a TFSA and an RRSP or an FHSA account?
TFSA Fees
There are no fees to open the account. There are management fees, however, it depends on the plan that you are going to choose.
Need TFSA answers now?
Call +1 438 701 3770 to speak to our advisors right away, or book some time with them.
+1 855 410 9006 (Toll-Free for Outside Canada)
TFSA FAQs
No. Withdrawals can be made tax-free and will not increase your income for the year. Since withdrawals are not taxed or considered taxable income, there will be no impact to your income-tested benefits and credits from the Federal Government, such as Old Age Security (OAS) and Guaranteed Income Supplement (GIS) or credits such as the Age Credit.
There are no service fee for opening a TFSA. There are management fees depending on the funds you choose. In the event this fee changes or new fees are introduced, we will notify clients by mail or electronically at least 30 days before the effective date of the change.
Any Canadian resident with a Social Insurance Number (SIN) who has reached the age of majority (18 or 19, depending on the province) can open a TFSA. Unlike an RRSP, you do not have to earn an income to make contributions to a TFSA.
Note: If you must wait until age 19 to open a TFSA, your accumulation of contribution room still starts at 18. (This applies to residents of Newfoundland and Labrador, New Brunswick, Nova Scotia, British Columbia, Northwest Territories, Yukon and Nunavut.)
A TFSA can hold a variety of investments, including Guaranteed Investment Certificates (GICs), mutual funds, segregated funds, portfolio solutions and savings deposits. You can also invest in stocks and bonds through our affiliate partners. Our advisors can help you decide which investments will best serve your needs.
Withdrawals you make in the current calendar year will be added to your unused contribution room. You must wait until the following calendar year or later to re-contribute these amounts.
If you already have a TFSA account:
You can simply go to your account or Mobile app and click on ‘Contribute Now’.
Call us at 1-438-701-3770. We’ll be happy to discuss your goals and help you choose the type of investments that best suit your objectives.
The limit for 2024 is $7,000, plus any unused contribution room you may have from prior years you were eligible to contribute. Below are the contribution limits for each year since the TFSA was introduced:
| Year | Contribution Limit Per Year |
|---|---|
| 2009 – 2012 | $5,000 |
| 2013 – 2014 | $5,500 |
| 2015 | $10,000 |
| 2016 – 2018 | $5,500 |
| 2019 – 2022 | $6,000 |
| 2023 | $6,500 |
| 2024 | $7,000 |
Canada Revenue Agency (CRA) tracks and reports this amount through the “My Account” function on the CRA web site
Invest in a TFSA Today
Choose how you’d like to invest in a TFSA from the following options:
Invest with Us and Get Advice when You Need It
- Meet with an advisor by phone, online (video chat), or in person to help get you started or for access to personalized advice
- Hold GICs, mutual funds, segregated funds and savings deposits
- View and manage your investments in Online Banking or the Mobile app
Trade and Invest with our Affiliate Direct Investing
- Call your own shots with our low-cost online trading and investing service
- Hold stocks, bonds, exchange-traded funds (ETFs) and more in your TFSA
- Make informed investment decisions using expert research and other resources like free real-time streaming quotes
Invest without Doing the Researching with our Affiliates
- Our pros will pick, buy and manage the investments in your TFSA for you
- We match you to a low-cost portfolio of exchange-traded funds (ETFs) based on your answers to a few questions
- Track your progress online anytime and speak to a Portfolio Advisor if you have questions or need advice