Tax-Free Savings Account (TFSA)
Discover the power of tax-free growth. Connect with us to open a TFSA.
A TFSA is a registered account to which you can contribute a given amount every year. It’s a great way to help you save for almost anything – like big-ticket items, a down payment, tuition or retirement.
Benefits of a TFSA
Tax-free growth and withdrawals
Unlimited carry-over
Contribute for as long as you want
To open a TFSA, you need to:
- Be a Canadian resident
- Have a social insurance number
- Be 18 years of age (or the age of majority in your province or territory of residence)
A non-resident of Canada who has a social insurance number and is 18 years of age or older is eligible to open a TFSA. But any contributions made while being a non-resident will be subject to a 1% tax for each month the contribution stays in the account.
You can boost your savings in a TFSA with income-generating investment products. The types of products you choose depend on your risk tolerance, timeline and goals.
Explore our investment products
Mutual funds
A straightforward way to invest in professionally managed funds that provide diversification and growth potential.
Segregated funds
Your money is invested across professionally managed investments while a portion of your principal is kept safe.
Annual contribution limits
| Year | Annual limit |
|---|---|
| 2024 to 2025 | $7,000 |
| 2023 | $6,500 |
| 2019 to 2021 | $6,000 |
| 2016 to 2018 | $5,500 |
| 2015 | $10,000 |
| 2013 to 2014 | $5,500 |
| 2009 to 2012 | $5,000 |
Any unused contribution room gets carried over from one year to the next. The best way to find out how much you can contribute for the current year is to check your Notice of Assessment from the CRA. Your notice is available in your online CRA account once your return is processed.
Penalties for over contributing
If you exceed your contribution room, you’ll face a penalty tax of 1% per month on the excess funds. For example, if you exceeded your maximum contribution by $4,000, you would owe a $480 penalty ($40 per month, over 12 months).
Withdrawal rules
While you can take money out of your TFSA for any reason, the timing depends on the type of investments in your account. Here are a few other things to keep in mind:
- Withdrawals are tax-free
- Taking money out of your account won’t reduce benefits or credits you’re eligible to receive from the government
- Withdrawals are added back to your unused contribution room. But you must wait until the following year to re-contribute these amounts
Find out more about these common registered accounts.
Learn how to reach your savings goals faster with our five-step plan.
Get our five-step savings plan
Find out how quickly your TFSA savings can add up.
Use calculatorReady to grow your wealth?
Not all products are available in all provinces.
In the province of Quebec, the authorized representatives are Financial Security Advisors who have been duly certified by the Autorité des marchés financiers.
Mutual funds are offered through Co-operators Financial Investment Services Inc. to Canadian residents except those in Quebec and the territories. Segregated funds and annuities are underwritten and administered by Co-operators Life Insurance Company.
Co-operators Life Insurance Company and Co-operators Financial Investment Services Inc. are committed to protecting the privacy, confidentiality, accuracy and security of the personal information that we collect, use, retain and disclose in the course of conducting our business. Please visit our privacy policy for more information.
Co-operators® is a registered trademark of The Co-operators Group Limited.