​TFSA

Reach your goals faster.

A Tax-Free Savings Account (TFSA) will help you save money for your short and long-term goals. Since any growth of investments inside a TFSA is tax-free, you will pay no taxes on the interest or investments you earn, even when the money is withdrawn. The contribution room for 2021 is $6,000.

Good for:

  • Saving for a down payment on a home.

  • Shorter-term savings goals, like a vacation or new car. 

  • Building tax-free savings during your retirement years. 

Enjoy the Benefits of a TFSA

  • Grow your money – Because your TFSA is tax-free, your earnings will be tax sheltered.

  • Once you are over 18 and have filed a tax return, there is no age limit – Unlike the RRSP, you can contribute to your TFSA for as long as you’d like.

  • Use it for short and long-term goals – You do not have to repay a TFSA withdrawal.

  • Carry over withdrawals – Any withdrawal you make adds extra contribution room the following year.

  • Unused contribution room can be carried to future years.

  • It can hold a number of investments – Term deposits, mutual funds, stocks and bonds included.

It's More Than Just a Savings Account

Despite it's name, a tax free savings account is more like a tax shelter in that you can put a variety of investments into your TFSA and protect them all of them from tax. Some types of qualified investments that can be put into a TFSA include:

  • Cash

  • Terms (GIC's)

  • Government and corporate bonds

  • Stocks

  • Mutual funds

As these investments grow you are not taxed on the growth. In fact, if you eventually use your TFSA to fund your retirement, those funds do not count as income and are not taxed.

You Can Make it Automatic

YCU can set up a pre-authorized contribution plan (PAC) and transfer as little as $25 from any of your other accounts to fund your TFSA.  Many members maintain a high interest savings account and then transfer funds to their TFSA when it comes time to maximize their contributions for the year. Either way, you always have funds invested in your TFSA that are tax-sheltered.  ​

There are many strategies for using a TFSA and we know all of them. Talk with one of our investment experts and get a Tax-free Savings Account working for you.   

​Ready to Put the Power of Investing to Work For You?

​​Need a hand?

​Whether its retirement planning, education planning or making your first investment, our experienced investment team will provide you with the most appropriate advice and solutions tailored to your unique situation.

​How much can I save?

​Our TFSA Calculator will help you figure out how much you can save in a Tax-Free Savings Account.