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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

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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.

Learn more about TFSA rules and contribution limits.

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.