Know your TFSA contribution limit + MORE Nov 30th

Featured TFSA Accounts

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TFSA savings account

Earn 2.50% interest tax fee tax-free interest with flexible withdrawals and zero fees.

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TFSA GIC rate (1 year)

Earn a guaranteed 4.05% in your TFSA when you lock in for 1 year.

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The Best TFSAs

Grow your savings with more of the best TFSA rates and accounts available in Canada.

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Why trust us
MoneySense is an award-winning magazine, helping Canadians navigate money matters since 1999. Our editorial team of trained journalists works closely with leading personal finance experts in Canada. To help you find the best financial products, we compare the offerings from over 12 major institutions, including banks, credit unions and card issuers…

One of the side-effects of working for a personal finance magazine is that I’m always asked for advice. I always oblige, albeit sheepishly, without letting on that I’m still learning, too (which I freely admit here). For instance, the other day I was having lunch with some friends when we started talking about money. The exchange went something like this:

Friend: Ugh, I’m so lost when it comes to money. What should I do?

One of the greatest mistakes young people can make right now is not realize that their money can do more than just sit there.

Me: Well, do you have a TFSA?

Friend: Yes (in a proud voice).

Me: That’s great, you’re ahead of the game. What are you investing in?

Friend: W-w-what?

I then went on to explain what a TFSA really is. The tax-free savings account is not, I repeat, not just a savings account.

sponsoredMCAN Wealth 1-year non-registered GICgo to site

Interest rate: 4.05%

Minimum amount: $1,000

Eligible for CDIC coverage: Yes

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What is a TFSA?

A tax-free savings account (TFSA) should really be called a tax-free investment account…

For Canadian investors and savers, it’s always some of the best news to come each year: new TFSA room that becomes available each January 1. For 2025, the TFSA contribution limit is $7,000 (the same amount in 2024).

The actual TFSA yearly limit was set at $5,000 back in 2009 when the investment account was first created, but it’s indexed to inflation each year and rounded to the nearest $500 to simplify things for investors. The exception was 2015, when the TFSA limit was hiked up to $10,000 for a single year before being decreased to $5,500.

Someone who has never contributed to a TFSA and was born in 1991 or earlier could have cumulative contribution room of $95,000 as of Jan. 1, 2024.

TFSA contribution limit—2009 to 2025

Year
TFSA Annual Limit
TFSA Cumulative Limit

2009
$5,000
$5,000

2010
$5,000
$10,000

2011
$5,000
$15,000

2012
$5,000
$20,000

2013
$5,500
$25,500

2014
$5,500
$31,000

2015
$10,000
$41,000

2016
$5,500
$46,500

2017
$5,500
$52,000

2018
$5,500
$57,500

2019
$6,000
$63,500

2020
$6,000
$69,500

2021
$6,000
$75,500

2022
$6,000
$81,500

2023
$6,500
$88,000

2024
$7,000
$95,000

2025
$7,000
$102,000

Investing ideas for your TFSA

TFSAs are not just for savings…