Saving for your future doesn’t have to be complicated — and a Tax-Free Savings Account (TFSA) is a simple way to help your money grow over time. Whether you’re just starting to save or looking for smarter ways to invest, a TFSA offers flexibility, tax advantages, and peace of mind. You are eligible to open a Tax-Free Savings Account if you are a Canadian resident, at least 18 years old, and have a valid Social Insurance Number (SIN). 

Here are five benefits of a TFSA in Canada and how it can help you reach your financial goals faster.  

1. Your Money Grows Tax Free
   A TFSA lets you access tax-free growth on your investments. This means that any interest, dividends, or capital gains earned inside your account are not taxed, meaning more of your money stays yours.  
   
   
2. You can withdraw money anytime
   You’re free to make withdrawals at any time from a TFSA — there’s no tax to pay and typically no penalties. Plus, any amount you withdraw is added back to your contribution room the following year, giving you flexibility to manage your money. 
   
   
3. TFSA does not affect your government benefits
   Are you worried about how savings could impact benefits like Old Age Security (OAS) or the Canada Child Benefit (CCB)? A TFSA withdrawal is not considered income, so it will not affect your eligibility for these government programs.
   
   
4. You can contribute at your own pace
   Life doesn’t always go according to plan—and your TFSA can adjust with you. Any unused contribution room carries forward indefinitely, so you can catch up on savings whenever it works best for you. The annual TFSA contribution limit is set by the Canadian government and may change from year to year. In 2025, the contribution limit is $7,000. 
   
   
5. TFSAs allow for multiple investment options
   A TFSA isn’t limited to cash. In a TFSA you can hold not just cash, but also investments like equities, bonds, term deposits, mutual funds or ETFs. This makes it perfect for both short-term goals and long-term wealth building. 

Apply here to open a TFSA with Provincial Credit Union. To find out more about TFSA accounts, text us at 1-855-728-2211 or call your nearest branch.