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What is a Tax Free Savings Account?

TFSA is a flexible investment account that can help you meet both your short-term and long-term savings goals.


  • Investment income in a TFSA—whether you’re earning interest, dividends or capital gains—are not taxed, even when withdrawn. This tax-free compound growth means that your money grows more quickly inside a TFSA than in a taxable account.
  • Annual contribution limit is $5,500 for 2013 and $5,000 for the years 2009 to 2012. This annual limit will rise along with inflation in future years, in $500 increments. In addition, you can carry forward unused contribution room indefinitely. The federal government will report your TFSA contribution room to you annually.
  • Eligibility – Any Canadian resident age 18 or older with a Social Insurance Number can open a Tax-Free Savings Account.
  • Income Requirements – You are not required to have earned income to contribute to a Tax-Free Savings Account
  • Tax Benefits – There is no tax deduction for contributing to a TFSA. However, the returns your investments generate (interest, dividends or capital gains) are not taxable (except for any foreign tax on foreign investments).
  • Withdrawals – You can withdraw money from your account at any time, (depending on what you invested in). You can re-contribute the amounts you withdrew anytime after the year of withdrawal. In addition withdrawals are tax free.
  • Investment Options – You can invest in Vanguard term deposits (1-5 years), variable deposits, and mutual funds. As well as stocks and bonds through our online broker Qtrade


  • Transfers in from other institutions and pension rollovers easily arranged
  • Variable rate deposits or fixed rate terms up to 5 years available
  • Automatic TFSA deposit transfers at varying frequencies at no fee
  • Minimum term deposits of $500
  • Competitive Rates

Click here to download the TFSA Declaration of Trust

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