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RBC Direct Investing > Account Types > Tax–Free Savings Account

Tax-Free Savings Account (TFSA)

A Tax-Free Savings Account (TFSA) is a flexible investment account that can help you meet both your short- and long-term goals. You can use your TFSA for a wide variety of purposes such as home renovations, a family vacation, to buy a car or even to supplement your retirement savings.


How does a TFSA work?

  • Canadian residents of majority age who have a Social Insurance Number, are eligible to open a TFSA
  • Unlike a Registered Retirement Savings Plan (RRSP), individuals over the age of 71 can open and contribute to a TFSA
  • There is no income level required to accumulate TFSA contribution room and the unused contribution room can be carried forward indefinitely. Visit the My Account section of the CRA website (opens new window) to learn about your specific contribution limit
  • Contributions are not tax-deductible for income tax purposes, but earned investment income (interest, dividends, capital gains) is not taxed
  • Although you cannot contribute to your spouse's or common-law spouse's TFSA, money you give to him or her to invest in their own TFSA will not be subject to the CRA's income attribution rules
  • Interest on money borrowed to fund the TFSA is not tax-deductible
  • Income earned and withdrawals have no impact on federal income-tested benefits or credits (Guaranteed Income Supplement, Child Tax Benefit, Old Age Security, etc.)

Key benefits of an RBC Direct Investing TFSA:

  • Competitive trade commissions as low as $6.95 - $9.95 flat (opens new window) with no minimum account balance required
  • Create a diversified portfolio with access to a broad selection of investments including stocks, exchange traded funds (ETFs), guaranteed investment certificates (GICs), mutual funds, options, bonds and more
  • No commissions when you buy or sell mutual funds1
  • Hold and settle trades in U.S. and Canadian dollars (opens new window) and save on foreign exchange conversion
  • No maintenance fee when you hold combined assets of $15,000 or more across all of your RBC Direct Investing accounts. Plus, you can take advantage of several other ways to have the fee waived.2
  • No withdrawal fee
  • Access to innovative tools and the latest research to help you make confident investment decisions

Open an account. Make the right move and start enjoying the speed, security and reliability of RBC Direct Investing.

1) Mutual fund companies may assess additional fees — for example, deferred sales charges on back-end load funds, early redemption fees, setup fees and fees for insufficient funds on pre-authorized purchases.

2) Clients with combined assets of $15,000 or more in all of their RBC Direct Investing accounts pay no quarterly maintenance fee. Clients with combined assets of less than $15,000 in all of their RBC Direct Investing accounts pay $25 per quarter. Clients can open a maximum of 10 accounts for a combined maintenance fee of $25/quarter. Additional maintenance fees will apply if a client opens more than 10 accounts. This fee will be assessed on client information as at the end of each quarter (March 31, June 30, September 30, December 31) and will be charged in April, July, October and January of every year. For complete details and for information about additional ways to have the quarterly fee waived read our Commissions and Fees Schedule.


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