Tax-Free Savings Accounts

What is a TFSA?

What's a Tax-Free Savings Account (TFSA)?

A TFSA is a registered savings vehicle that helps you grow your money faster because you don’t pay taxes on the interest or investment income you earn. Choose from a selection of savings and investment products for your TFSA contributions, including savings accounts like the CIBC Tax Advantage Savings Account®, GICs, and other investments like mutual funds and stocks.

Play video: What is a TFSA? (2:01) | Transcript

Are you eligible for a TFSA?

To open a TFSA, you must live in Canada, be 18 years or older and have a valid Social Insurance Number (SIN). Contribution room accumulates beginning in the year in which you turn 18.

Depending on the type of investment you choose, you may need to wait until you turn 19 to start contributing if the age of majority is 19 in the province or territory where you live.¹

How does a TFSA work?

Your maximum contribution room for a year

=

TFSA dollar limit

+

Total of unused contribution room from the previous year(s)

+

Withdrawals made in the previous year²

Contribution room is per person, not per account. You can have multiple TFSAs at multiple financial institutions, but it doesn’t increase your contribution room.

It’s your responsibility to keep track of your TFSA contribution room so you don’t overcontribute.³ One way to check your contribution room is to sign on or register for an online account with the Canada Revenue Agency (CRA) Opens in a new window.. The CRA tracks all of your TFSA contributions and updates your contribution room at the beginning of every calendar year.

The TFSA dollar limit gets set every year. For example, in 2023, it’s $6,500. Remember that this limit is not the same as your maximum contribution room.
If you can’t contribute up to the limit in any given year, no problem: you can carry it forward. This means if you’ve never had a TFSA, were at least 18 in 2009 and have been a Canadian resident since then, you can contribute up to $88,000 in 2023 because of the unused contribution room you’ve carried forward.
You can withdraw your money for any reason, at any time, tax-free. Plus, you can add the withdrawal amount back into your TFSA the next calendar year or in later years.⁴

TFSA dollar limits since 2009

Year	Amount	Total
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

Comparing TFSAs with FHSAs and RRSPs

TFSAs, FHSAs and RRSPs can all be integral pieces of a good financial plan. Find out more about these three important registered plans and how they can help you meet your savings and investment goals.

Learn more

TFSA Savings and GICs

Earn guaranteed interest, tax-free

Grow your savings tax-free with the CIBC TFSA Tax Advantage Savings Account^®. Or select one of our CIBC TFSA GICs – you’re guaranteed to keep what you invest while earning competitive interest on your money, tax-free.

Grow your savings, tax-free

CIBC TFSA Tax Advantage Savings Account®

Start reaching your savings goals today, no matter what you’re saving for.

Open or contribute

Earn competitive, guaranteed interest^† on your deposits right away
Set up recurring deposits to grow your savings faster
Withdraw your money any time, for any reason, tax-free

Access to your money when you need it – Cashable TFSA GICs

CIBC Flexible TFSA GIC™

Enjoy guaranteed returns with the freedom to access your money at any time.

Open or contribute

Access your money at any time
Minimum investment of $500
Simple interest is paid at maturity

Security and growth – Non-redeemable TFSA GICs

CIBC Bonus Rate TFSA GIC

Earn guaranteed interest at a great rate that won't change over your term.

Open or contribute

Variety of terms available
Non-redeemable prior to maturity
Minimum investment of $500

Diversify your portfolio – Market Linked GICs (TFSA eligible)

CIBC Market Linked GICs

Take advantage of the growth potential of a market-linked return, but with full protection of your principal.

Open or contribute

Market exposure with 100% principal protection⁵
Potential for higher returns than traditional GICs based on market performance
RRSP and TFSA eligible

TFSA Mutual Funds

Mutual funds – a great option for your TFSA

When you put mutual funds in your TFSA, you pay no taxes on the investment income you earn. Choose from a wide array of CIBC mutual funds and find the right one for your TFSA.

Savings funds

Low risk
Steady level of income with focus on preserving capital
Accessible anytime

Income funds

Low to medium risk
Potential to generate higher income than savings funds
Some capital growth over the long term

Growth funds

Higher risk
Long term investment
Higher potential return than other asset classes

CIBC Portfolio Solutions

Save yourself the time and effort of constructing and monitoring your own portfolio by choosing one of our professionally managed portfolio solutions. Let our expert advisors help you find the right mix of investments for your TFSA.

CIBC Smart Investment Solutions

CIBC Personal Portfolio Services