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What is a Tax-Free Savings Account?

A 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  • Investment income in a TFSA – whether you’re earning interest, dividends or capital gains—are not taxed, even when withdrawn.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 as of January 1, 2017. In addition, you can carry forward unused contribution room indefinitely. The federal government will report your TFSA contribution room to you annually.
  • Previous contribution limits:
    • $5,500 in 2016
    • $10,000 in 2015
    • $5,500 in 2014 and 2013
    • $5,000 in 2012 – 2009.
  • 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 Credential Direct.


  • 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

Duration Rate
12 Months 1.650%
24 Months 1.850%
36 Months 1.900%
48 Months2.050%
60 Months 2.200%
Registered Savings 
RRSP/RRIF/TFSA - Variable$0 - $4,9990.0500%
RRSP/RRIF/TFSA - Variable $5,000 & over0.7500%

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