A woman sits on the floor of her living room, with her hands behind her head, smiling while she looks off in the distance. She has a laptop on her lap and papers on the floor around her.

Savings Account.

Tax-Free Savings Account.

Whether you’re saving for a project, a big trip or want to boost your retirement savings, a Tax-Free Savings Account (TFSA) can help you get there.

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Why invest in a TFSA?

Pay zero taxes.

They don’t call it “tax-free” for nothing. Any investment income or returns you make are 100% tax-free, even when you withdraw the funds.

Your money when you want it.

Depending on how you invest, access your money anytime you need it. If you withdraw funds, you can recontribute them the following year.

Your investments, your way.

Build your wealth with investment income, dividends and market returns.

How it works.

  • Start with $500.

    It really doesn’t take much to let your money work for you. All you need is a minimum of $500 to kickstart your investment.

  • Contribute $7,000 for 2024.

    Invest up to the annual contribution limit in a TFSA. Plus, you can contribute any unused room from previous years.

  • The luxury of choice.

    A wide range of our savings and investments products are eligible for your TFSA.

What can I hold in a TFSA?

Cash account

Term Deposits

Fixed-rate GICs


Mutual funds

TFSA vs. RRSP. What’s the difference?

A TFSA doesn’t replace an RRSP, but they make a great pair. Here’s how they match up:


Who’s eligible


Canadian residents who are at least 18 years old are eligible, regardless of income. You must have reached the age of majority in your province or territory to open an account.


Canadian citizens who are less than 71 years old with earned income.

Tax advantages


Investment earnings in a TFSA are tax-sheltered, but amounts invested in a TFSA are not tax-deductible.


Amounts invested in an RRSP can be deducted from your income, up to the annual allowable limit. Investment earnings in an RRSP are tax-sheltered.

Access to funds


Funds can be withdrawn from a TFSA, depending on the type of investments you hold. The amount withdrawn is tax-free. There are no restrictions on withdrawals – you can take out any amount for any reason.


Funds can be withdrawn from an RRSP, depending on the type of investments you hold. The amount withdrawn is taxable at the time of the withdrawal and must be claimed as income on your taxes.

Income-based benefits affected by withdrawals


Withdrawals don’t affect how your income is calculated for tax purposes. That means, amounts taken from a TFSA won’t be considered when determining if you qualify for government benefits like the Old Age Security pension, Guaranteed Income Supplement, Employment Insurance benefits and the Canada Child Benefit.


Withdrawals are considered taxable income in the year that they’re made. The various benefits are then calculated.

Contribution limit


$7,000 in 2024, regardless of income. The annual limit will be indexed to the inflation rate and rounded yearly to the nearest $500. Learn more about TFSA contributions.


The annual contribution limit is equivalent to 18% of your earned income from the previous year, up to a limit defined by law for that year, less any pension adjustment. Learn more about RRSP contributions.

Unused contribution room


If you contribute less than your annual allowable limit, the difference will automatically be carried forward to the next year, and again the following year, and so on. What’s more, any amount you withdrew last year will be added to your contribution room this year, so you never lose your contribution room.


If you contribute less than your annual allowable limit, the difference will automatically be carried forward to the next year. Any amount you withdraw from your RRSP won’t be added to your contribution room.

Excess contributions


Excess contributions are subject to a tax of 1% per month, for each month the excess remains in the account.


Excess contributions can’t be more than the lifetime cumulative limit of $2,000. The tax on the surplus is 1% per month, and applies until you withdraw the surplus from the RRSP.

Account conversion


You can contribute to a TFSA throughout your lifetime. There’s no need to convert it to another type of account.


You can contribute to an RRSP until the end of the year when you turn 71. At that point, it must be converted to a Registered Retirement Income Fund (RRIF) or used to buy an annuity. With a RRIF, you’re required to take an annual minimum withdrawal, and all RRIF withdrawals are considered income for tax purposes. You can also cash in the entire amount of your RRSP.

Helpful tips and resources.

Your questions answered.

A grandfather, father and daughter sit on a dock with their legs dangling over the water.


More time for what matters most.

Whatever you’re saving for, a Laurentian Bank GIC can help get you there sooner. So just focus on what you love.

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