ZAREENJIT KAUR LALL
Tax-Free Savings Account (TFSA)
A tax-free savings account (TFSA) is an account in which contributions, interest earned, dividends, and capital gains are not taxed, and can be withdrawn tax-free. It can hold certain investments including mutual funds, securities, and bonds as well as cash
Tax-free savings accounts (TSFAs) are available to Canadian residents age 18 or older.
TSFAs let you save money on taxes because the gains on investments in the account are not taxed and withdrawals can be made tax-free.
There is an annual contribution limit to TSFAs; in 2020 that limit is C$6,000.