Tax Free Savings Account

Generally, interest, dividends, or capital gains earned on investments in a TFSA are not taxable either while held in the account or when withdrawn.

The types of investments that are permitted in a TFSA are the same as those permitted in a registered retirement savings plan (RRSP). These would include the following types:

• cash
• securities listed on a designated stock exchange
• guaranteed investment certificates
• bonds
• certain shares of small business corporations