Tax-Free Savings Account
TFSAs are great for long or short-term goals because your savings can grow more quickly when you don’t have to pay tax on investment income.
A Tax-Free Savings Account (TFSA), is an account where you can save or invest up to $5,500 a year.1 Unlike other types of savings, you’re not taxed on the income you earn. It’s a great way to save for your short or long-term goals; because it lets your savings grow – tax-free.
What are the benefits of TFSAs?
You don’t pay taxes on the investment income or growth earned in your TFSA - helping you build your savings faster. See how much you could save with the TFSA Savings Calculator.
Contribute up to $5,5001 a year
You can contribute up to $5,5001 annually to your TFSA and any unused contribution room is carried forward. See the rules for TFSA limits and contributing to your TFSA.
You don’t pay taxes on withdrawals. See the rules for making withdrawals from your TFSA.
You can put back any amounts you withdraw2
Unlike a Retirement Savings Plan (RSP), a TFSA allows you to re-contribute amounts that you withdraw, in the year after you withdraw them. Learn the difference between a TFSA and RSP.
TD makes it easy to save
At TD, you'll find a range of Tax-Free Savings Accounts (TFSAs) to help you save money. Whether you're putting money aside for a down payment on a house, saving for a major purchase like a car or a vacation, building your rainy day fund or making sure you have enough for a comfortable retirement, a TFSA can help. Each TFSA can help in different ways, depending on your personal goals and finances. See which one is right for you.
What types of TFSAs are available?
TD Canada Trust TFSA
High Interest TFSA Savings Account
- Competitive interest rate for tax-free growth
- Steady, predictable returns
- Easy access to your money
- Deposit to a High Interest TFSA Savings Account today and earn a special 1.25% interest rate on all new balances until February 29, 2016.1
TD Mutual Funds TFSA
- Access to a wide range of investments
- The benefit of professionally managed investments
- The option to chooseTD Comfort Portfolios for a convenient all-in-one investment solution
- The ability to make ongoing bi-weekly or monthly contributions through a Preauthorized Purchase Plan
TD Direct Investing
1 The bonus interest rate offer is from January 4, 2016, to February 29, 2016, (the “Offer Period”) and applies to a High Interest TFSA Savings Account (“Account”) in a TD Canada Trust Tax-Free Savings Account (“TFSA”) only. Posted interest rate is 0.50% per annum and the bonus interest rate is an additional 1.25% per annum. If the TFSA is opened during the Offer Period, bonus interest will be earned on the Account commencing on the 2nd business day after opening on the total daily closing balance. If the TFSA was opened before the Offer Period, bonus interest is earned only on the portion of the daily closing balance on the Account that exceeds the closing balance on December 31, 2015. Bonus interest will be calculated separately and paid monthly. Bonus interest is not payable on funds transferred from an existing TD Canada Trust TFSA. Interest at the posted interest rate is earned on the total daily closing balance of the account and paid monthly. Posted interest rates only will apply after the Offer Period. Interest rates are subject to change without notice. We reserve the right to change, extend or withdraw this offer at any time. Cannot be used in conjunction with any other offer.
Where to put your savings?
Whether your savings goal is for a comfortable retirement, homeownership or education, both RSPs and TFSAs can be a good option. To learn more take a look at the comparison chart below:
The difference between TFSAs and RSPs
|Primary purpose||Saving for any purpose||Retirement savings, home purchase or education.|
|Annual contribution limit||$5,5001 PLUS amounts withdrawn in previous years2||18% of previous year’s earned income (maximum limits apply), less pension adjustments|
|Unused contribution room||Carried forward||Carried forward|
You’re not taxed on withdrawals.
They do not affect federal income-tested government benefits such as Old Age Security
Money taken out is taxed as income at your marginal rate.
Withdrawals are counted as income and may affect federal income-tested government benefits such as Old Age Security
|Withdrawn amounts||Added to contribution room in future years||Contribution room is lost for amounts you withdraw|
|Plan maturity||None; no upper age limit on contributions||End of year when you turn 71|
|Spousal plan||n/a||You can contribute directly to a spousal RSP|
|Eligible investments||You can hold savings accounts, GICs, mutual funds, stocks, bonds||You can hold savings accounts, GICs, mutual funds, stocks, bonds|
Open a TFSA today
1 Annual contribution limit for 2016. The annual contribution limit was $5,000 from 2009 to 2012, and $5,500 from 2013 to 2014, and $10,000 for 2015. Annual TFSA contribution limit is subject to revision by the federal government.
2 The amount you withdraw can be re-contributed to your TFSA the following year or years without impacting your contribution room.
3 The holder of a TFSA with TD must be of the age of majority in their province of residence.
Have a few questions?
We’ve provided answers to some of the most common questions people have about TFSAs. Take a look below to find helpful information.