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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 $6,000 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.

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

Numbers you need to know

  • $6,000
    your 2019 TFSA contribution limit
  • $63,5001,2
    your total possible room so far
  • 69%
    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 2019 TFSA contribution limit is $6,000, 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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Sign in to open a TFSA or contribute to one you already have.
Don’t have an account?
Here are two ways to sign up:
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1 Any 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.
2 Assumes you are a Canadian resident from 2009 to 2019 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; 2019: $6,000.
*Only stocks traded on publicly traded exchange