Tax-free savings accounts

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.

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 year, excluding withdrawals made to correct over-contributions.

You can have more than one TFSA at any given time, but the total amount you contribute to all your TFSAs cannot be more than your maximum TFSA contribution room for that year. It’s your responsibility to keep track of your TFSA contribution room so you don’t overcontribute.² 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 2021, it’s $6,000. Remember that this limit is not the same as your maximum TFSA 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 $75,500 in 2021 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

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.

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.