TFSA

Tax Free Savings Account (TFSA) was introduced in 2009 by the Harper Government. 

TFSA contribution limit for 2025 is $7,000. The maximum amount that can be invested into a TFSA in 2025 is $102,000 (Cumulative contribution limit assuming that you have never contributed to a TFSA and you were 18 or over in 2009, when the TFSA was introduced). Unused contribution room carries over into the following year.

How can I use my TFSA effectively?

A Tax-Free Savings Account (TFSA) is a powerful financial tool, and using it effectively can help you grow your savings without paying taxes on gains. Here are some strategies to maximize its benefits:

1. Invest, Don’t Just Save

Instead of simply holding cash in your TFSA, consider investing in stocks, ETFs, mutual funds, or bonds. The returns you make are completely tax-free, so you can grow your wealth faster.

2. Maximize Contributions

Each year, the government sets a contribution limit. Ensure you’re contributing up to the maximum allowed amount, as unused room carries forward.

3. Avoid Over-Contributing

Withdrawals don’t immediately restore your contribution room. If you over-contribute, you’ll face penalties, so always check your available room before adding more funds.

4. Think Long-Term

Because TFSA withdrawals aren’t taxed, it's a great vehicle for long-term investments. You could use it for retirement savings, a down payment on a home, or other major life goals.

5. Take Advantage of Tax-Free Withdrawals

Unlike other retirement accounts, you can withdraw from your TFSA anytime without tax penalties. This makes it ideal for emergency savings or unexpected expenses.

TFSA Rules:
- if you don't use your contribution room in one year, it caries forward to the next years;
- if you make withdrawals during the year, that amount can be re-contributed only after January 1 of the following year.

Example 1: in 2017 you contribute the maximum amount of $52,000. You make a withdrawal of $10,000 during 2017. You are allowed to re-contribute the $10,000 only after Jan 1, 2018. If you contribute before this date you will get penalized by CRA.

Example 2: you contribute $40,000 in 2017 and before. During 2017 you withdraw $10,000. Now you have only $30,000 in your TFSA. You can still contribute $12,000 to max out your contribution room. The $10,000 you withdrew in 2017 can be re-contributed only after Jan 1, 2018.

 
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Achieva Financial offers 2.10% interest rate for any daily interest TFSA, RRSP, Savings Accounts. Or you can get 3.50% for 1 Year GIC, or 3.50% for a 2 year GIC. Achieva Financial has a very good reputation of constantly high interest rates (no limited promotional interest rates).

You can open the account 100% online. They have online banking services, good customer service, online chat, online secure messaging system. All deposits are 100% guaranteed.

Also you get $25 Bonus if you use Achieva Petal V879070291 and make a deposit of minimum $250. Additionally you get $1 Bonus every month for receiving your statement online. You can apply online here: https://openaccount.achieva.mb.ca/

Here are the steps to get the $25 Welcome Bonus + 2.10% interest:
1. Enroll for a new Achieva financial Account following the link  https://openaccount.achieva.mb.ca/

2. Use the Achieva Petal V879070291

3. Make an initial deposit of $250. The Bonus of $25 will be deposited into your account!