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