Tax-Free Savings Account (TFSA)A flexible investment
Save money and avoid taxes through the use of this type of account and you’ll have money for your retirement or anything else that you see as valuable in the future.
An account that does not charge taxes on any contributions, interest earned, dividends or capital gains, and can be withdrawn tax free. Tax-free savings accounts were introduced in Canada in 2009 with a limit of $5,000 per year, which is indexed for subsequent years. The contributions are not tax deductible and any unused room can be carried forward. This savings account is available to individuals aged 18 and older and can be used for any purpose.