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Start saving today, tax-free.
Save for new furniture, your emergency fund, retirement and more with anRBC TFSA.
Invest in a TFSA
- What is a TFSA?
- TFSACalculator
- TFSA FAQs
- TFSA FAQs
What is a TFSA?
A Tax-Free Savings Account (TFSA) is a powerful registered investment accountyou can use to save for anybig-ticket item or goal – tax free. If you like more flexibility and less taxes, consideropening a TFSA.
Registered Investment Accounts
Registered investment accounts offer unique tax advantages to help you save for thefuture. For example, the Registered Retirement Savings Plan (RRSP) lets you deduct yourcontributions from your taxable income now and defer the taxes until you withdraw thatmoney in retirement, while investment income you earn in a Tax-Free Savings Account(TFSA) is never taxed. The features, benefits and rules for registered accounts aredetermined by the Government of Canada.
Here’s why 60% of Canadians invest in a TFSA1:
- Pay no taxes on any investment earnings4
- Contribute even if you’re retired or not employed
- Contribute for as long as you want to—there’s no age limit
- Make up for missed contribution room from previous years indefinitely
- Withdraw your money at any time for any reason2
- Use a TFSA to save for anything while also saving for retirement in an RRSP
Exclusive Benefits When You Invest With RBC
Free Digital Tools to Help You Plan & Save
See all your money in one place, get tips and save automatically with smart toolssuch as MyAdvisor and .
Advice When You Need It
Speak with an advisor in-person, by phone or over video - whether you're investing$50 or $5,000.
How a TFSA Works
From opening an account—to withdrawing money—here's how a TFSAcan help you reach your goals:
A TFSA is a type of registered investment account, which means you canhold income-generating investments in it versus just cash (like asavings account).
The types of investments you can buy in your TFSA depend on where youopen an account. You also want to consider your reasons for investingand your appetite for risk when choosing investments.
RBC Royal Bank: ideal if you want investment advice and access toan advisor – in-person, byphone or over video
Offersmutualfunds,GICsandsavingsdeposits
RBC DirectInvesting opens in newwindow: Ideal if you want to make yourown investment decisions
Offers stocks, options, Exchange-Traded Funds (ETFs),mutual funds, bonds and GICs
RBCInvestEase opens in newwindow: Ideal if you want to investonline and access Portfolio Advisors
Offers ETF portfolios designed for different investors(each portfolio holds a diverse mix of ETFs)
Ways to Invest YourMoney at RBC
Tip: At RBC, you can open a TFSA withany amount you are comfortable with. Remember to keep the contributionlimits in mind.
Since the money you earn from investments you hold in a TFSA (interest,dividends or capital gains) is not taxed, it has theopportunity to grow faster than it would in a non-registered account.
Another way to save faster is by setting up regular (weekly, monthly,etc.) automaticcontributions into your TFSA.
Dividend:
Distribution of a portion of a company's earnings, decided by theboard of directors, to a class of its shareholders. Dividendsare often quoted in terms of the dollar amount each sharereceives (dividends per share or DPS).
Capital Gains or Capital Loss:
Profit or loss from the sale of real estate, stocks, mutualfunds, and other holdings classified as capital assets under thefederal income tax legislation. The tax treatment of capitalgains is different from other types of investment income such asdividends and interest income.
- You decide how much to save and how often—weekly,bi-weekly, monthly—it’s up to you. Be mindful ofyour available TFSA contribution room when setting up automaticcontributions.
- Contributions are automatically debited from your bankaccount (at RBC or another financial institution)
- You can change how much you want to save, how often youcontribute, and stop or pause your contributions at any time
While you can take money out of a TFSA for any reason (a car, yourwedding, retirement, etc.), your timing does depend on the investmentsyou hold in it. For example, non-redeemable GICs must be held untilmaturity.
Here are a few other things to know:
- You won't have to pay tax on money you take out.
- Withdrawals won’t reduce benefits and credits you’reeligible to receive from the Federal Government, such as Old AgeSecurity (OAS).
- Withdrawals get added back to your unused contribution room.However, you have to wait until the next year or later tore-contribute these amounts.
One of the best things about a TFSA is you can use it to save foranything you want. For tips and advice to help reach your goals, exploreour “how to” guides:
- Start Saving Money(Just Because)
- Savefor a Child’s Education
- Save to Buy aHome
- Save for aBig-Ticket Item
- Save forRetirement
Numbers to Know
$0
Taxes you'll pay on TFSA earnings
$7,000
2024 TFSA contribution limit
$95,000
Maximum TFSA contribution limit3
If you open your first TFSA in 2024, provided you were at least 18 years old, and aCanadian resident in 2009, and have remained a Canadian resident since then.
How Your Money Can Grow in a TFSA vs. a Savings Account
Contribution Rules, Fees & More
TFSA Rules and Contributions
TFSAs are extremely flexible, but there are a few details you should know.
ReadMore about TFSA rules and contributions
TFSA vs RRSP vs FHSA Account
Deciding between a TFSA and an RRSP or an FHSA account?
CompareAccounts TFSA vs RRSP vs Savings
RBC Resource Centre for Seniors
Discover advice, tools and information designed to help you manage your money.
SeeMore of the RBC Resource Centre forSeniors
TFSA Fees
If you wish to transfer your current RBC TFSA to a financial institution outsideRBC (and its affiliates), a $150.00 fee will apply.
Learn More about TFSA fees
TFSA FAQs
No. Withdrawals can be made tax-free and will not increase your incomefor the year. Since withdrawals are not taxed or considered taxableincome, there will be no impact to your income-tested benefits andcredits from the Federal Government, such as Old Age Security (OAS) andGuaranteed Income Supplement (GIS) or credits such as the Age Credit.
There is a service fee of $150.00 for the transfer of property from aTFSA to a company thatis not a subsidiary of Royal Bank of Canada. This fee is subject tochange. In the eventthis fee changes or new fees are introduced, RBC will notify clients bymail orelectronically at least 30 days before the effective date of the change.
Any Canadian resident with a Social Insurance Number (SIN) who hasreached the age of majority (18 or 19, depending on the province) canopen a TFSA. Unlike an RRSP, you do not have to earn an income to makecontributions to a TFSA.
Note: If you must wait until age 19to open a TFSA, your accumulation of contribution room still starts at18. (This applies to residents of Newfoundland and Labrador, NewBrunswick, Nova Scotia, British Columbia, Northwest Territories, Yukonand Nunavut.)
An RBC TFSA can hold a variety of investments, including Guaranteed Investment Certificates(GICs), mutualfunds, portfoliosolutions and savings deposits. Youcan also invest in stocks and bonds through RBC DirectInvesting® and RBC Dominion Securities. An RBCadvisor can help you decide which investments will best serve yourneeds.
Withdrawals you make in the current calendar year will be added to yourunused contributionroom. You must wait until the following calendar year or later tore-contribute theseamounts.
You can contribute to an existing TFSA:
- Through RBCOnline Banking(opens newwindow) or the RBCMobile app(opens new window)if you have an RBC Royal Bankchequing or savings account.
- Call us at 1-844-357-8242. We'llbe happy to discuss your goals and help you choose the type ofinvestments that bestsuit your objectives.
- Visityour branch. Werecommend booking an appointment ahead of time.
The limit for 2024 is $7,000, plus any unused contribution room you mayhave from prior years you were eligible to contribute. Below are thecontribution limits for each year since the TFSA was introduced:
| Year | Contribution Limit Per Year |
|---|---|
| 2009 - 2012 | $5,000 |
| 2013 - 2014 | $5,500 |
| 2015 | $10,000 |
| 2016 - 2018 | $5,500 |
| 2019 - 2022 | $6,000 |
| 2023 | $6,500 |
| 2024 | $7,000 |
Canada Revenue Agency (CRA) tracks and reports this amount through the“My Account” function on the CRA web siteexternal site opens in a new window.
See All FAQs
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1)
RBC2021 Financial Independence in Retirement Poll. Findings from the 30thannual RBC RRSP Poll, conducted by Ipsos from December 10 to 17, 2019 on behalfof RBC Financial Planning, through a national survey of 2,000 Canadians aged 18+who completed their surveys online. Quota sampling and weighting are employed tobalance demographics to ensure that the sample's composition reflects that ofthe adult population according to Census data and to provide results intended toapproximate the sample universe. The precision of Ipsos online polls is measuredusing a credibility interval. In this case, the poll is accurate to within±2.2 percentage points had all Canadian adults been polled. All samplesurveys and polls may be subject to other sources of error, including, but notlimited to coverage error, and measurement error.
2)
While you can take money out of a TFSA for any reason, your timing does dependon the investments you hold in it. For example, non-redeemable GICs must be helduntil maturity.
3)
The maximum contribution room of $95,000 applies if you open your first TFSA in2024, provided you were at least 18 years old, and a Canadian resident in 2009,and have remained a Canadian resident since then. If you have more than oneTFSA, your contribution room is shared across all accounts. It is yourresponsibility to ensure that you do not exceed your contribution limit eachyear. If you over-contribute to your TFSA, you may have to pay a penalty tax.
4)
Assets in a TFSA must be Qualified Investments under the Income Tax Act. If theTFSA holds non-Qualified Investments, it could be subject to tax.
Royal Bank of Canada and Royal Mutual Funds Inc. (RMFI) make no warranties,express or implied, as to the accuracy or completeness of the informationcontained herein.
Royal Bank of Canada and RMFI shall not be liable for any losses or damagesarising from any errors or omissions in information contained in thiscalculator.
Financial planning and investment advice are provided by RMFI. Mutual Funds aresold by RMFI. RMFI, RBC Global Asset Management Inc., Royal Bank of Canada,Royal Trust Corporation of Canada and The Royal Trust Company are separatecorporate entities which are affiliated. RMFI is licensed as a financialservices firm in the province of Quebec.
Information about the Tax-Free Savings Account is based on what is currentlyavailable from the Canadian government and can be subject to change.
