Tax Free Savings Account

Saving for your dream vacation? Building an emergency fund for a rainy day?
A Tax Free Savings Account (TFSA) is a great way to save money – tax free.

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What is a TFSA?

A Tax Free Savings Account (TFSA) is an investment account that lets you earn interest on your money, without having to pay tax on the interest you earn. You can use your TFSA for any savings goals. You can withdraw from a TFSA at any time without having to pay tax.

You can invest money in a TFSA using a variety of products, but there’s a limit to how much money you can put in it.

Unused annual contributions can be carried forward to future years, and withdrawals can be put back in the TFSA the following year without reducing contribution room, meaning it's super flexible as well. It’s no wonder why it has become one of the most popular ways Canadians save money.

Where can I invest my TFSA?

A TFSA can be invested in a variety of products like savings accounts, GICs, Mutual Funds*, ETFs*, and Index-Linked GICs*. The choice is very personalized, your advisor can help.

Is there a limit to how much I can invest?

You have to be at least 18 years old to invest in a TFSA, and the government sets limits on how much money you can put into a TFSA.

Over-contributing to a TFSA carries hefty penalties, so be sure to know your limit.

Connect with a PenFinancial Advisor, check your most recent Notice of Assessment, or login to your CRA MyAccount to see your current contribution limit.

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Your Guide to Understanding the TFSA

Your Guide to Understanding the TFSA

Get your hands on this useful brochure packed with valuable information about the Tax Free Savings Account, in accordance with the latest legislation effective from April 2023. And don’t hesitate to reach out to a knowledgeable PenFinancial Advisor today to get answers to any questions you may have about a TFSA.

Download the TFSA brochure →

Which is better for me, an RRSP or TFSA?

TFSAs and RRSPs work in different ways. The money you contribute to a RRSP actually reduces your income and offers you tax breaks in the year you contributed. Great, but when you begin to withdraw from a RRSP down the road, you’ll be taxed on that money as income.

The money you contribute to a TFSA doesn’t reduce your income for the year, so don’t expect a big tax refund because of it. But on the bright side, when you withdraw from your TFSA, it doesn’t count as income.

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Deposit insurance coverage

At PenFinancial Credit Union, eligible deposits in registered accounts have unlimited coverage through the Financial Services Regulatory Authority (FSRA).

Eligible deposits (not in registered accounts) are insured up to $250,000 through the Financial Services Regulatory Authority (FSRA).

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Note *Online brokerage services are offered through Qtrade Direct Investing. Mutual funds and other securities are offered through Aviso Wealth. Qtrade Direct Investing, Qtrade Guided Portfolios and Aviso Wealth are divisions of Aviso Financial Inc.
Unless otherwise stated, mutual funds and other securities are not insured nor guaranteed, their values change frequently and past performance may not be repeated. Unless otherwise stated, mutual funds, other securities and cash balances are not covered by the Canada Deposit Insurance Corporation or by any other government deposit insurer that insures deposits in credit unions.
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Our Truly Local Commitment is the heart and soul of our philosophy, where we believe the prosperity of our Members and our communities go hand in hand. We commit a portion of our profits to support truly local initiatives, a living wage is our minimum wage, and we are a Certified B Corporation – just a few ways we are invested in our community.

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