Tax-Free Savings Account (TFSA)
What is a TFSA?
A TFSA (Tax Free Savings Account) is an investment account that lets you earn interest on your money, and withdraw funds, free of tax. This year, you can contribute up to $6,500, the TFSA dollar limit for 2023.
You can do anything with a TFSA – withdraw money to contribute to your RRSP, set aside emergency savings, use it as retirement income, cover living expenses during parental leave – the possibilities are endless.
Benefits of a TFSA
You don’t pay tax on any interest, dividends, or capital gains your investments earn.
Withdraw as much as you want, any time, without paying tax on it.
Build a TFSA that fits your goals from a wide range of investment and savings options – including GICs, bonds, and ETFs.
Open a TFSA
Quick tip: If you're already a Member, you can open a TFSA through Online Banking. On your accounts page, just select "Add Investments" and choose "TFSAs". Sign in and get started.
Featured TFSA options
1-year Cashable GIC
A great option if you want a guaranteed investment without locking your money away.
A great, lower-risk way to benefit from the potential growth of the stock market. Your principal investment is guaranteed!
High Interest Savings
A full-service savings account with a great rate to help your money grow faster.
Want to chat with an advisor about building a TFSA that fits your savings goals? Start the conversation – find a branch and book a meeting.
For 2023, the annual contribution limit is $6,500. Unused contribution room is carried forward from previous years.
Who can contribute
Canadian residents 18 years or older who have a valid social insurance number can contribute to a TFSA.
Unused contribution room
If you have unused contribution room at the end of the year you can carry it over and use it next year.
- You can withdraw any amount, any time. There may be some exceptions to this – it depends on the types of investments you have in your TFSA. For example, if you’re holding GICs in your TFSA and you withdraw those funds before they mature, you may pay a penalty.
- When you make a withdrawal, you can re-contribute the same amount at the start of the next year and it doesn’t count toward your annual contribution limit.
- You don't pay any taxes on the funds you withdraw.
For 2023, the annual limit is $6,500. If you have contribution room carried over from previous years, you can also use that. To find out how much contribution room you’ve carried over, you can:
Call TIPS (Tax Information Phone Service) at 1-800-267-6999
Visit the CRA site and log in to MyAccount
Request a TFSA Room Statement from the CRA at 1-800-959-8281 (to check for hours of service and phone numbers for outside of Canada, visit the CRA site)
Find it on your last Notice of Assessment from the CRA
It's often easier to make smaller, regular contributions than it is to come up with a larger lump sum. This is easy to do with a pre-authorized contribution plan (PAC). A PAC automatically withdraws as little as $25 from one of your other Meridian accounts and adds it to your TFSA. In the end though, you can contribute any way you want – just keep an eye on the contribution limit.
There are three ways to add money your TFSA.
Deposit a lump sum
Use a pre-authorized contribution plan (PAC) to automatically deposit a set amount into your TFSA at certain times.
Use the Meridian Auto-Save feature to automatically add between $1 to $5 to your TFSA any time you use your debit card or transfer a portion of your pay cheque to your TFSA.
Yes. You can open as many TFSAs as you want. Just remember: your contribution limit for 2023 is $6,500 in total (plus any contribution room you've carried over and room created by withdrawals), regardless of whether you have one or five TFSAs.
With Meridian, you can add any combination of the following investments to your TFSA.
If you exceed your maximum contribution for the year, you have to pay a penalty to the CRA of 1% per month on the excess amount for as long as it’s in your account.
No. Unlike an RRSP, the funds you contribute to your TFSA are not tax-deductible.
Mutual funds are offered through Credential Asset Management Inc. Mutual funds and other securities are offered through Credential Securities, a division of Credential Qtrade Securities Inc. Credential Securities is a registered mark owned by Aviso Wealth Inc.