outlookfinancial - TFSA | Outlook Financial

What is a TFSA?

The TFSA is not your typical savings account. In fact, it’s a powerful way to grow your investments completely tax free! Add funds into your TFSA and watch the savings grow, then withdraw funds for anything you choose.

The TFSA is a registered account that offers flexibility for short or long-term goals—depending on your needs. Offered to Canadians aged 18 years and over, you are able to hold a variety of investments in your TFSA, including Outlook Financial GICs.

While you can contribute to the TFSA at any point in the year, it’s important to understand the maximum contribution room and when to contribute to your TFSA vs. an RRSP.

Contribution limit

In 2021, you can deposit a maximum of $6,000 annually into the TFSA. This is called your contribution limit.

Carry forward

If you happen to miss contributing any year, you can carry it over to the next year, as the total contribution amount is cumulative.

Investment gains

Any interest earned on your savings is not considered a part of your annual contribution limit, so you don’t have to worry about paying any taxes or penalties on your investments.

Withdrawals

When you’re ready to withdraw money, you can take out as little or as much as you need.

Another benefit of the TFSA is the flexibility on withdrawals (from your High-Interest Savings Account) and additional contributions—provided you still have room.

For example, if you only contributed $2,000 into your TFSA in January 2021, you could continue to contribute up to $4,000 more throughout the year. And if you need to take out any funds from your High-Interest Savings Account or cashable GIC during the year, you’re able to do so. Now that’s flexibility.

Visit our Support page to learn more about how our TFSA account works, including more rules and guidelines.