A tax-free savings account (TFSA) is a government sponsored account in which interest earned, dividends, and capital gains are not taxed on your contributions and can be withdrawn tax-free. Although it is called a savings account, a TFSA can hold select investments including mutual funds, securities, and bonds as well as cash. The intent is to earn a higher potential rate of return with these investments vs just cash as all of these gains are tax free. Your account can help you meet a variety of your financial goals and should be used in conjunction with your RRSP. This type of account is available to individuals ages 18 and older in Canada and can be used for any purpose.
Not sure what a Tax-Free Savings Account (TFSA) is or how it can help? Contact a Granite Financial TFSA professional today. We make wealth management simple!