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Tax-Free Savings Account (TFSA)

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What is a TFSA?

A TFSA is a savings plan that lets you grow your money tax-free.

Mix things up. You can fill your TFSA with a mix of savings and investments, like cash, GICs, stocks, bonds, mutual funds, and more.
Grow tax-free. You don’t have to pay tax on any growth earned inside your TFSA, including interest, dividends and capital gains.
Know the limits. You can invest up to your TFSA contribution limit. This year, that’s $5,500 but if you have unused contribution room from previous years, you may be able to invest more.
Get started. You just have to be the age of majority or older and a Canadian resident with a valid Social Insurance Number to open a TFSA.

Perfect for: Anyone looking for a flexible way to save for right now and down the road.

Ready to invest?

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$10,000SavingsMutual FundsGICsCashStocksBondsETFs$500In tax-free earningsTFSA
$10,0005%$500SavingsGrowthIn tax-freeearningsMutualFundsStocksCashGICsBondsETFsTFSATax Free Growth

Numbers you need to know

  • $5,500
    your 2018 TFSA contribution limit
  • $57,5001,2
    your total possible room so far
  • 55%
    Total percentage of Canadians that own a TFSA

Top questions about TFSAs

Want to learn more about TFSAs?

What is the TFSA contribution limit?

The 2018 TFSA contribution limit is $5,500, plus any unused contribution room you may have accumulated based upon your eligibility.

Get carried away and you’ll get hit with a penalty on the amount that’s over the limit. On the flip side, if you invest less than the annual limit, the difference will roll over into the next year.

What can I invest in my TFSA?

Cash. You’ll earn interest and can easily withdraw the money whenever you need it.

GICs. A low-risk investment with competitive returns that locks in your money for a set amount of time.

Market-linked GICs. BMO Progressive GICs offer peace of mind through principal protection and higher return potential than conventional GICs.

Mutual Funds. Pool your money with other investors in professionally managed portfolios.

ETFs. Buy shares of investment funds that trade on the stock exchange, with lower fees.

Stocks* and bonds. Pick options that fit your goals and how much risk you’re okay with.

When can I withdraw from my TFSA?

Whenever! One of the best parts about a TFSA is that it’s flexible, so you can save for something that’s two years away or twenty. And unlike other investing options, you can withdraw from your TFSA without any extra taxes or penalties.

Helpful Tools and Resources

Your future is full of long-term goals. Can a TFSA be there for you?

Is a TFSA right for your long-term goals?

A TFSA can help you reach your long-term goals, and even play a role in your retirement plans.
We all have short-term goals. Is a TFSA the answer?

Can a TFSA help with short-term goals?

A TFSA can be a great solution when you’re investing for a goal that’s one to three years away.
Understanding TFSAs: The basics

Understanding TFSAs: The basics

Not sure how a TFSA works? Brush up on the basics in just a few minutes


Open a TFSA today

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1Any individual who is 18 years of age or older and who has a valid Social Insurance Number (SIN) is eligible to open a TFSA. For some provinces and territories, you must be age 19, the age of majority, to open a TFSA. In these jurisdictions, a person turning 18 years of age who would otherwise be eligible accumulate TFSA contribution room for that year and carries it over to the following year. Visit the Canada Revenue Agency website at for details.
2Assumes you are a Canadian resident from 2009 to 2018 and eligible to contribute each year to a TFSA and have not made any redemptions. The contribution limits vary as follows: 2009 – 2012: $5,000 per year; 2013 and 2014: $5,500 per year, 2015: $10,000; 2016, 2017, and 2018: $5,500 per year.
3BMO Fund Linked GIC is issued by Bank of Montreal Mortgage Corporation (BMMC) and guaranteed by Bank of Montreal.  The principal amount of the BMO Fund Linked GIC is guaranteed and is repayable upon maturity, but there is no guarantee you will receive any return linked to the performance of the underlying securities.  The rate of return will be the return on the Reference Portfolio, except that the rate of return will not be less than zero and will not be greater than the Maximum Rate of Return for the Term.  The rate of return is not an annual rate but is the rate of return over the entire term of the GIC. The return on the Reference Portfolio is equal to the weighted average of the percentage  changes in the prices of the securities comprising the Reference Portfolio, calculated as a percentage using the securities weightings set out in the Summary.  The percentage change in the price of a security in the Reference Portfolio is equal to the percentage increase or decrease between the price of the security on the second business day after the Issue Date and the Calculation Date.  The return on the reference portfolio will not include any distributions or dividends on the securities.  For more information about the BMO Fund Linked GIC, visit your local BMO Bank of Montreal branch.  BMO Exchange Traded Funds are managed by BMO Asset Management Inc., and investment fund manager and portfolio manager, and a separate legal entity from the Bank of Montreal.

“S&P” is a trademark of The McGrawHill Companies Inc.  “TSX” is a trademark of TSX Inc.  These marks have been licensed for use by Bank of Montreal.  The BMO Fund Linked GIC is not sponsored, endorsed, sold or promoted by Standard & Poor’s or the Toronto Stock Exchange and neither party makes any representation regarding the advisability of investing in the BMO Fund Linked GIC.
4The interest rate of 3.00% is comprised of the posted interest rate of 0.75% plus a bonus interest rate of 2.25%. The interest rate (both posted and bonus rates) may be changed at any time without notice. Current interest rates are available in BMO branches where TFSA Savings Accounts are available, at and by calling 1-877-225-5266. The posted interest rate applies to the entire balance in your TFSA Savings Account. The bonus interest rate only applies to the portion of the balance in your TFSA Savings Account that exceeds the closing balance as of July 31, 2018 . The posted interest and the bonus interest are each calculated on the daily closing balance and payable monthly as of the last day of the month. Interest rates are per-annum. Offer may be changed or withdrawn at any time without notice. Once the period has ended the rate returns to the posted rate. Other terms and conditions may apply.
*Only stocks traded on publicly traded exchange