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New in 2024.
Your contribution room increased by $7,000 in 2024 and you may have unused contribution room. Discover your contribution room

Grow your savings tax-free with a TFSA.

A TFSA is an account that helps you save toward your goals without being taxed on the growth in your investments.

Why invest in a TFSA?

Grow your savings, tax-free.
Interest and other income earned on your investment is not taxed as long as you stay within your contribution room.
Tax-free withdrawals. 

Withdrawals are not subject to taxes either.
No contribution deadline.
You can invest on your own schedule without worrying about deadlines.
Contribution room carries over. 

Any unused contribution room is always carried over to the next year.

Build your TFSA

Your TFSA can be made up of savings accounts and investments like Guaranteed Investment Certificates (GICs) and mutual funds to help you get the most from your savings.

Yearly contribution limit

Every year, the government lets you deposit more money into your TFSA. There is no contribution deadline and if you can’t afford to put money aside one year, your unused contribution room carries over.



Years
TFSA Annual Limit
Cumulative Total
2009-2012
$5,000
$20,000
2013
$5,500
$25,500
2014
$5,500
$31,000
2015
$10,000
$41,000
2016
$5,500
$46,500
2017
$5,500
$52,000
2018
$5,500
$57,500
2019
$6,000
$63,500
2020
$6,000
$69,500
2021
$6,000
$75,500
2022
$6,000
$81,500
2023
$6,500
$88,000

2024

$7,000

$95,000

The great debate: TFSA vs. RRSP

What are your investing needs?
TFSA
RRSP
Do contributions reduce your taxable income?
No
Yes
Are these funds subject to income tax when withdrawn?
No
Yes
Is interest earned on these investments tax sheltered?
Yes
Yes
Can these funds be withdrawn anytime, for any reason, without being taxed?
Yes
No

TFSA FAQs

A Tax-Free Savings Account (TFSA) is a registered savings and investment plan that allows you to contribute, grow, and withdraw money without being subject to taxes or penalties.

A TFSA can be made up of cash or investment products like Guaranteed Investment Certificates (GICs) or mutual funds. Interest and other income earned on your investment is not taxed as long as you stay within your contribution room, and withdrawals are not subject to taxes either.

Each year the account holder can contribute an amount up to their contribution room, which is determined by:

  • The annual TFSA dollar limit as set by the Government of Canada each year
  • Any unused TFSA contribution room from the previous year
  • Any withdrawals made from the TFSA in the previous year

Anyone over the legal age of majority, is a temporary or permanent resident of Canada, and has a valid Social Insurance Number is eligible to open and contribute to a TFSA.

Depending on the type of investment held in your TFSA, you can withdraw any amount from it at any time. Withdrawing funds from your TFSA does not reduce the total amount of contributions you have already made for the year.

Withdrawals, excluding qualifying transfers and specified distributions, made from your TFSA in the year will only be added back to your TFSA contribution room at the beginning of the following year.

Over-contributions are subject to a tax of 1% per month for each month the excess amount remains in the account. Members are responsible for ensuring they are within their contribution limit. Coast Capital Savings is not liable for any penalties incurred due to TFSA over contribution. Learn more here

Yes, as long as you are the registered account holder of the TFSA.

Try out our TFSA vs. RRSP calculator

Both products are government incentives. Both have benefits and both have drawbacks. At the end of the day, it all depends on you, your circumstances and your goals. If you want to explore your options, check out our TFSA vs. RRSP calculator.

Try out our TFSA vs. RRSP calculator

Both products are government incentives. Both have benefits and both have drawbacks. At the end of the day, it all depends on you, your circumstances and your goals. If you want to explore your options, check out our TFSA vs. RRSP calculator.
Try our calculator
Try our calculator
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CDIC Deposit ProtectionCDIC Deposit Protection

Coast Capital Savings Federal Credit Union is a member of the Canada Deposit Insurance Corporation (CDIC). More CDIC information

Only deposits payable in Canada are eligible to be insured under the Canada Deposit Insurance Corporation Act.

Coast Capital Savings Federal Credit Union provides advice and service related to deposit, loan and mortgage products. Coast Capital Wealth Management Ltd. provides investment and financial planning services. Coast Capital Financial Management Ltd. provides advice and service related to segregated funds, annuities and life insurance products. Worldsource Financial Management Inc. provides advice and service relating to mutual funds. Mutual fund values change frequently and past performance may not be repeated. Commissions, trailing commissions, management fees and expenses may all be related with mutual fund investments. Important information about mutual funds is contained in the relevant fund facts and simplified prospectus. Please read the fund facts carefully before investing.

Operating under the trade name, Coast Capital Investment Management, certain investments are provided through Worldsource Securities Inc., sponsoring investment dealer and Member of the Canadian Investor Protection Fund and of the Investment Industry Regulatory Organization of Canada.

The information on this page provided for general information purposes only. It is not to be relied upon as financial, tax, or investment advice or guarantees about the future, nor should it be considered a recommendation to buy or sell. You should consult your professional advisor for specific financial, investment, and tax advice tailored to your needs to ensure that individual circumstances are considered properly and action is taken based on the latest available information.