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Skip Navigation LinksATB Financial > Personal > Invest > Tax-Free Savings Account (TFSA)

 Tax-Free Savings Account (TFSA)

 

A TFSA is a flexible way to grow your savings tax free.

Every Canadian resident 18 years of age or older is
eligible to save or invest up to $5,500 every year in a government-registered TFSA.

ATB’s TFSA investment products include GICs, mutual funds, stocks, and bonds—and even a specially designed high-interest savings account, the Tax-Free Saver Account. Income earned on investments in your TFSA, including interest and capital gains, is not taxed... ever. And there’s no deadline for your contributions.

TFSA features:

  • Grow your money tax free. Money earned or withdrawn from your TFSA is non-taxable—that is, all interest, dividends, or capital gains earned are tax free.
  • Withdraw money at any time with no penalty. And if you withdraw an amount from your TFSA, you can re-contribute that same amount the following year or any year after that.
  • Carry forward your contribution room—it never expires.
  • Collect federal benefits without deductions. Old Age Security, Guaranteed Income Supplements, Employment Insurance, and Canada Child Tax Benefits will not be impacted by TFSA withdrawals.
  • Create tax-free savings even if you’re over 71. There are no age limits with a TFSA. So if you have more retirement income from your Registered Retirement Income Fund (RRIF) than you need, just invest it in a TFSA.

When it comes to your portfolio, you don’t need to choose just an RRSP or just a TFSA. There’s a time and a place for both.

What’s the difference between an RRSP and a TFSA?

The biggest difference is when you pay tax. Check out the RRSP vs. TFSA comparison table to learn more.

Semi annual interest frequency is only available as simple interest and cannot be compounded.1Rate effective January 2, 2013 and is non-redeemable. Rates are subject to change at anytime without notice. Please see branch for complete details.
 

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