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.
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.
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.
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 →
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.
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).
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.