A Tax Free Savings Account allows Canadians to save money tax free. After-tax contributions can be placed in a TFSA account and any earnings, interest, dividends or capital gains all will grow tax free within the account. Any withdrawals from a TFSA are also tax free making this an excellent product to save for the future.

Contribution room carries forward year over year and means you could contribute a larger annual amount if you haven’t been accumulating each year. In 2025 the limit will be $7,000 for those Canadians over 18 years of age.

The TFSA first came out in 2009 and if you were over 18 in that year and have not contributed to a TFSA, your total contribution limit in 2025 would be $102,000. Like RRSPs, you can choose any investment product under a TFSA plan.