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The money you invest into a tax free savings account is taxable income, but the money that your investment earns while in a TFSA investment product, is tax free. With its flexible features, a TFSA can help you achieve short or long-term goals. You can do anything with a TFSA – withdraw money to contribute to your RRSP, set aside emergency savings, supplement parental leave income, use it as retirement income – the possibilities are endless.

Tax-sheltered growth

You don't pay tax on any interest, dividends, or capital gains your investments earn.

Worry-free withdrawals

Withdraw as much as you want, any time, and without paying tax on it.

Customized savings

Build a TFSA that fits your goals from a range of savings and investment options, including Term Deposits and EFTs.

Contribution Rules
Withdrawal Rules

Contribution Rules
Withdrawal Rules

Contribution Rules

Follow these guidelines to make the most of your contributions:

Maximum contribution: For 2024, the annual contribution limit is $7,000. Unused contribution room is carried forward from previous years. The cumulative total since the beginning (including 2024) is $95,000.
Who can contribute: Canadian residents 18 years or older who have a valid social insurance number can contribute to a TFSA.
Unused contribution room: If you have unused contribution room at the end of the year you can carry it over and use it next year.

Withdrawal Rules

What you need to know about taking your money out of your TFSAs

You can withdraw any amount, any time. There may be some exceptions to this – it depends on the types of investments you have in your TFSA. For example, if you’re holding Term Deposits in your TFSA and you withdraw those funds before they mature, you may pay a penalty.
When you make a withdrawal, you can re-contribute the same amount at the start of the next year and it doesn’t count toward your annual contribution limit.
You don't pay any taxes on the funds you withdraw.

For 2024, the annual limit is $7,000. If you have contribution room carried over from previous years, you can also use that. To find out how much contribution room you’ve carried over, you can:

Call TIPS (Tax Information Phone Service) at 1-800-267-6999
Visit the CRA site and log in to MyAccount
Request a TFSA Room Statement from the CRA at 1-800-959-8281 (to check for hours of service and phone numbers for outside of Canada, visit the CRA site)

It's often easier to make smaller, regular contributions than it is to come up with a larger lump sum. This is easy to do with a pre-authorized contribution plan (PAC). A PAC automatically withdraws from one of your other BVCU accounts and adds it to your TFSA. In the end though, you can contribute any way you want – just keep an eye on the contribution limit.

To add money to your TFSA, you can:

Deposit a lump sum
Use a pre-authorized contribution plan (PAC) to automatically deposit a set amount into your TFSA at certain times.

Yes. You can open as many TFSAs as you want. Just remember: your contribution limit for 202 is $7,000 in total (plus any contribution room you've carried over and room created by withdrawals), regardless of whether you have one or many TFSAs.

At BVCU, through our partnership with Credential, you can add any combination of the following investments to your TFSA.

Term deposits
Mutual funds
Bonds
Savings accounts
Stocks
ETFs

If you go exceed your maximum contribution for the year, you have to pay a penalty to the CRA of 1% per month on the excess amount for as long as it’s in your account.

No. Unlike an RRSP, the funds you contribute to your TFSA are not tax-deductible.