Benefits of a TFSA
No Tax on Income
Earnings from qualified investments (interest, dividends or capital gains) are never taxed.
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.
No Income Requirements
Retired or stay-at-home parent? Contribute money from your spouse or park RRIF withdrawals in a TFSA.
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.
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 Federal Benefits
Income earned and withdrawals don’t affect eligibility for Federal income-tested government benefits or tax credits.
Tax-Free Savings Can Add Up Faster
Explore top TFSA 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.
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|
|2016 - 2018||$5,500|
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.
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.