TFSA Tax-Free Savings Account

What is a TFSA?

A TFSA, or Tax-Free Savings Account, is a tax-sheltered account introduced in 2009 and available to all Canadian citizens who have reached the age of 18. When you have a TFSA, you can deposit money into it any time you like, up to a predetermined annual maximum. TFSA contribution room is cumulative, starting in 2009, from the age of 18.

Years 2009-2012 2013-2014 2015 2016  2017 Cumulative limit 
Annual limit $5,000 $5,500 $10,000 $5,500  $5,500 $52,000

From that point on, you pay no income tax on any of the investment earnings generated by the money in the account – including interest, capital gains and dividends. What’s more, you can withdraw money whenever you like without paying taxes on the withdrawals, provided you follow the TFSA rules

why open an account with FERIQUE?

Why open a TFSA?

Because a TFSA can help you achieve various objectives. For example:


  • Start an emergency fund
    Experts recommend that you have the equivalent of three to six months’ income on hand to deal with unexpected expenses or a temporary inability to work.
  • Provide a tax-sheltered environment for income generated by a cash windfall


  • Your money will grow tax free and be available to you any time.


  • Buy a home
    A TFSA can be more flexible than the Home Buyers’ Plan (HBP) for building a down payment.
  • Buy a secondary residence
  • Buy a car
  • Take a vacation


  • Your savings will grow more quickly because they are sheltered from taxes.


  • Go back to school
  • Take unpaid leave
  • Start a business


  • When you’re ready, your TFSA can pay you a non-taxable income.


  • Fund your retirement
  • Fund your children’s or grandchildren’s education


  • A TFSA combines well with an RESP and is an excellent complement or substitute for an RRSP.

How a TFSA works


  1. You may deposit funds whenever you like.
  2. You must not exceed the maximum annual contribution.
    Over-contributions are subject to a tax of 1% per month.


  1. You may withdraw funds whenever you like.
  2. A withdrawal from a TFSA frees up equivalent contribution room the following year.
    For example, if you withdraw $5,000 in 2016, your contribution room for 2017 is increased by $5,000.


Your investment earnings and withdrawals will never be taxed.
Just make sure you follow the TFSA rules.

contact us

Advisory ServicesFERIQUE Investment Services
Monday to Friday 8 a.m. to 8 p.m.
T 514-788-6485
Toll free 1-800-291-0337