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Tax-Free Savings Account (TFSA)

Benefits of a TFSA

  • No Tax on Income

    Earnings from qualified investments (interest, dividends or capital gains) are never taxed.

  • Hold the Plan for Life

    Keep your TFSA as long as you live. Unlike the RRSP, you won’t have to close it at a set age.

  • Keep Your Contribution Room

    In addition to the annual contribution limit, your unused contribution room is carried forward indefinitely. Plus, withdrawals are added back to your contribution room the following year.

  • No Income Requirements

    Retired or stay-at-home parent? Contribute money from your spouse or park RRIF withdrawals in a TFSA.

  • No Tax on Withdrawals

    Flexible access to your funds (depending on your investments) without the investment gains being added to your income for the year.

  • Keep Federal Benefits

    Income earned and withdrawals don’t affect eligibility for Federal income-tested government benefits or tax credits.

Try our TFSA Calculator to see how Savings can add up faster

Growth Inside vs Outside a TFSA

The chart shows how $6,000 contributed annually, earning 6% interest, can grow faster within a TFSA.

Assumes tax rate of 32% outside of TFSA, with interest income taxed annually. All contributions made at beginning of year. 6% annual compound rate of return. For illustration only and not indicative of future returns. Actual tax rates and rates of return will vary.

TFSA Calculator

Try the TFSA calculator to see how much more you could save in a TFSA vs. a taxable account1.

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TFSA contribution limit is $6,000. Please lower your yearly contribution.
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TFSA contribution limit is $6,000. Please lower your yearly contribution.

TFSA Frequently Asked Questions

Any Canadian resident with a Social Insurance Number (SIN) who has reached the age of majority (18 or 19, depending on the province) can open a TFSA. Unlike an RRSP, you do not have to earn an income to make contributions to a TFSA.

Note: If you must wait until age 19 to open a TFSA, your accumulation of contribution room still starts at 18. (This applies to residents of Newfoundland and Labrador, New Brunswick, Nova Scotia, British Columbia, Northwest Territories, Yukon and Nunavut.)

An RBC TFSA can hold a variety of investments, including Guaranteed Investment Certificates (GICs), mutual funds, portfolio solutions and savings deposits. You can also invest in stocks and bonds through RBC Direct Investing™ and RBC Dominion Securities. An RBC advisor can help you decide which investments will best serve your needs.

TFSAs are extremely flexible, but there are a few details you should know.

Read More

Below are the contribution limits for each year the TFSA has been around:

Year Contribution Limit Per Year
2009 - 2012 $5,000
2013 - 2014 $5,500
2015 $10,000
2016 - 2018 $5,500
2019 $6,000
2020 $6,000

Yes, you can set up an RBC TFSA-Matic®, which lets you manage the frequency and amount of contributions to your TFSA using funds from your RBC Royal Bank chequing or savings account.

You can start, change or pause/stop your TFSA-Matic contributions in one of three ways:

  • Sign in to Online Banking: Choose your TFSA, and click "Manage Pre-Authorized Contributions" from the left menu.
  • Call us any time at 1-800-463-3863, for information and advice.
  • Visit your branch or call 1-800-769-2511 to make an appointment

Try the TFSA calculator to see the benefits of regular, ongoing contributions.

Deciding between a TFSA and an RRSP or an eSavings account?

Compare Accounts
View All FAQs

Ready to Invest in a TFSA?

Open or contribute to your TFSA today!

* Do you have RBC Online Banking and an RBC chequing or savings account?

The accuracy of the calculations set out in this calculator are based on the accuracy and completeness of the data you have provided, and are for illustration purposes only. You should speak with your RBC advisor before making any decision based on the information in this calculator to consider whether a course of action meets your overall financial needs and that your specific circumstances have been taken into account. This calculator does not represent or replace a comprehensive financial plan or represent any type of financial planning service. The scope of this analysis is limited to one aspect of your financial goals.

Royal Bank of Canada and Royal Mutual Funds Inc. (RMFI) make no warranties, express or implied, as to the accuracy or completeness of the information contained herein.

Royal Bank of Canada and RMFI shall not be liable for any losses or damages arising from any errors or omissions in information contained in this calculator.

Financial planning and investment advice are provided by RMFI. RMFI, RBC Global Asset Management Inc., Royal Bank of Canada, Royal Trust Corporation of Canada and The Royal Trust Company are separate corporate entities which are affiliated. RMFI is licensed as a financial services firm in the province of Quebec.

Information about the Tax-Free Savings Account is based on what is currently available from the Canadian government and can be subject to change.