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A Tax-free Way to Save and Invest
With the flexibility to hold a wide range of investments, a self-directed Tax-Free Savings Account (TFSA) is a powerful way to save for your next goal – without having to pay taxes on what you earn.
What is a TFSA?
It’s a registered investment account that lets your earnings (like interest, dividends and capital gains) from qualified investments grow tax-free. Invest for any goal – from a new car to retirement – and never pay tax on withdrawals.
The Benefits of Opening a TFSA:
- Choose from a vast range of investments available at RBC Direct Investing — including stocks, ETFs, fixed-income investments, mutual funds and more
- Invest without paying Canadian taxesDisclaimer 1 on what you earn
- Earnings and withdrawals won’t affect your eligibility for Old Age Security (OAS) or other government benefits
At RBC Direct Investing, You Can Also…
Hold and Settle in U.S. Dollars
Hold and settle trades in U.S. and Canadian dollars and save on foreign exchange fees.
Access Exclusive Tools
Use powerful tools and the latest research to confidently make investment decisions.
Make Decisions in the Moment
Use free real-time streaming quotesDisclaimer 2 to stay informed and make decisions in the moment
Find Out More About TFSAs
How Real People are Using Their TFSAs
From paying for college to retiring, learn how real people use—or plan to use—their TFSAs.
What Investments Can I Hold in My TFSA?
You can hold a wide range—including the same ones you hold in a Registered Retired Savings Plan (RRSP).
Want to Start Trading Today?
Complete your application online in just minutes and your account can be opened within 24 hours3.
Frequently Asked Questions
In 2023, the contribution limit is $6,500. You can make contributions throughout the year or in a lump sum. In addition to the annual contribution limit, your unused contribution room is carried forward indefinitely. Plus, withdrawals are added back to your contribution room the following year.
No, investment income and withdrawals are not included as income for tax purposes, which means they will not affect your eligibility for income-tested government benefits and credits such as the Canada Child Tax Benefit, the Working Income Tax Benefit, the Guaranteed Income Supplement, Old Age Security (OAS) or the Goods and Services Tax (GST) credit.
TFSAs allow for a range of investments, such as cash, guaranteed investment certificates (GICs), bonds, stocks, exchange-traded funds (ETFs), mutual funds and options.
Find out more about investments you can hold in a TFSA in the Investing Academy, part of the Inspired Investor™ online magazine.
There may be commissions, trailing commissions, investment fund management fees and expenses associated with investment fund and exchange-traded fund (ETF) investments. On or after June 1, 2022, any trailing commissions paid to RBC Direct Investing Inc. will be rebated to clients pursuant to applicable regulatory exemptions. Before investing, please review the applicable fees, expenses and charges relating to the fund as disclosed in the prospectus, fund facts or ETF facts for the fund. Mutual funds are not guaranteed, their values change frequently and past performance may not be repeated. For money market funds there can be no assurances that the fund will be able to maintain its net asset value per security at a constant amount or that the full amount of your investment in the fund will be returned to you.
Legal Disclaimer 1)
Assets in a TFSA must be qualified investments under the Income Tax Act. If the TFSA holds non-qualified investments or carries on a business, it could be subject to Canadian tax. If the TFSA holds foreign securities (including U.S. publicly listed), it could be subject to withholding tax in the foreign jurisdiction.
Legal Disclaimer 2)
Real-time streaming quotes are available automatically to all clients for exchange listed equities, ETFs and most over-the-counter (OTC) securities. Real-time streaming quotes for options and grey market OTC securities are available to Active Traders and Royal Circle clients upon accepting the terms and conditions of all exchange agreements on the RBC Direct Investing online investing site.
Legal Disclaimer 3)
Subject to approval. Account applications submitted online and received Monday through Friday prior to 2:30 pm ET will generally be opened the next business day.
Legal Disclaimer
Information provided on this page is for your general information and is not intended to provide legal, investment, financial, accounting or tax advice. If you require any such advice, you should retain the services of a competent professional.