Tax-Free Savings Account (TFSA)

What's a Tax-Free Savings Account?

A TFSA is a flexible registered savings account where your investments grow in a tax-sheltered way, and withdrawals are also tax-free.

What is it for?

It’s great for saving for any large purchase, like a vacation, home improvements or special event. You can take out your money whenever you want without penalties.

How it works?

The funds you invest in the account can grow without being taxed. You can take the money out whenever you need it without paying taxes on it, and you can also re-contribute the amount you withdrew in future years. It’s a flexible way to save for anything, with tax-free growth and withdrawals.

Get to know the TFSA

Eligibility

For Canadian residents aged 18+

Minimal investment

No minimal investment amount

Best suits for

For long-term investments

Yearly limit

$7,000 for 2025

Withdrawals

Tax-free withdrawals any time without the pay-back requirement

Risk

Low risk and guaranteed return at an agreed rate or condition

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Featured rates

Term	Interest rate
Savings	0.60%
1 year	3.05%
2 years	3.15%
3 years	3.15%
4 years	3.15%
5 years	3.30%

Download all rates in PDF

Simple process,
guaranteed returns

Please note!

Each application is unique with it’s own circumstances. For your individual case we advise you to speak to our Financial Services Officers

Open a TFSA

To be eligible you must be a Canadian resident 18 years of age or older with a valid SIN number. To open an account, book an appointment, or find the nearest branch to apply in-person.

Make contributions

You can contribute a mix of savings and investments to your TFSA, such as cash, GICs, stocks, bonds, and mutual funds. Every year, the government gives you a contribution limit. For 2025, you can contribute up to $7,000.

Earn without paying taxes

TFSA allows your savings to grow without ever paying tax on the interest earned within your account.

Withdraw, invest more or re-invest

TFSA is flexible, so it is your investment — your rules!

Please note!

Each application is unique with it’s own circumstances. For your individual case we advise you to speak to our Financial Services Officers

Maximize your savings tax-free
with a TFSA from BCU

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Questions? We got answers!

Browse more FAQs

Who is eligible to open a TFSA?

To open a Tax-Free Savings Account (TFSA), you must be a Canadian resident with a valid Social Insurance Number (SIN) and be at least 18 years old (or 19 in some provinces where the age of majority is higher). There is no income requirement, and your contribution room accumulates each year, even if you don’t open an account right away.

What are the contribution limits for a TFSA?

The annual TFSA contribution limit is set by the government and may change each year. If you don’t use your full contribution room, it carries forward indefinitely. You can also re-contribute withdrawn amounts in future years, but exceeding your limit may result in penalties.

Can I withdraw from my TFSA at any time?

Yes, you can withdraw from your TFSA at any time, and withdrawals are tax-free. The amount you take out will be added back to your contribution room, but only starting the following calendar year. Just be careful not to re-contribute the withdrawn amount in the same year unless you have available contribution room to avoid penalties.

Can I have more than one TFSA?

Yes, you can have multiple TFSAs at different financial institutions, but your total contributions across all accounts must stay within your annual limit. If you exceed your contribution room, you may face penalties. Keeping track of your contributions is important to avoid over-contributing.

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