Tax-Free Savings Account (TFSA)

A Tax-Free Savings Account (TFSA) is still a relatively new savings option.

Build your savings, tax-free

Introduced in 2009, TFSAs are flexible, registered, general-purpose savings plans designed to help you reach your short and long-term goals. The investment income you earn in a TFSA is – you guessed it – tax-free! So a TFSA is a great way to shelter your savings, and build them up over time.

Given the flexibility and simplicity of TFSAs, they are a smart choice for any number of savings needs. For example, they are a great option if you are:

TFSAs from Oaken also provide you with security and peace of mind, since they are eligible for Canada Deposit Insurance Corporation (CDIC) coverage, up to applicable limits. Plus, we offer some of the best rates available.

Contribution limits

While the annual contribution room for a TFSA is currently $6,000 (effective from January 2019), you can also carry forward any unused contribution room from previous years, as well as reinvest any withdrawals made in the past.

If you have already maximized your contributions since TFSAs were first established, this means you’ll only be able to contribute up to $6,000 for the current year. But on the other hand, if you’ve never made any TFSA contributions before, you can invest up to $63,500, which is the total contribution room accumulated to date. Or if you have been making contributions that fall somewhere in between, you’ll be able to add any existing room you have available to this year’s limit of $6,000.

Quick facts about TFSAs

Since TFSAs are still fairly new in Canada, there are some ins and outs to them that you may not know. Here’s a quick overview:

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