What is a TFSA? A two-minute introduction
Despite the name, a TFSA (Tax-Free Savings Account) is not really a savings account. It is a container: you choose what to hold inside it — cash, GICs, or investments like ETFs — and everything it earns is yours tax-free.
The three things beginners most often miss
- You need contribution room. Room accumulates every year you are a Canadian resident aged 18+, whether or not you open an account.
- Withdrawals are flexible. You can take money out any time without tax, and the room comes back — but only on January 1 of the next year.
- It is not just for cash. Leaving a TFSA in cash is like buying a greenhouse and never planting anything.
This is a short sample article published while setting up the site. A full TFSA guide is coming as part of the launch content.