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Tax-Free Savings Account (TFSA)

Tax-free savings accounts (T F S As) are so much more than a savings account. Your savings grow tax-free and can hold various investment types, making T F S As a great option to help you reach all of your savings and investing goals.
  • Invest in your T F S A up to the annual limit and watch it grow, tax-free
  • You can fill your T F S A with various investments, such as stocks, bonds, Exchange Traded Funds, mutual funds and Guaranteed Investment Certificates
  • Tax-free savings accounts allow you to make withdrawals, without penalty, whenever you’d like

BMO TFSA can help you reach your long or short-term investing goals with tax-free savings.

Get a $100* bonus when you open a BMO TFSA.
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Why invest in a TFSA?

Tax-free growth

You don’t have to pay tax on any growth earned inside your T F S A, including interest, dividends and capital gains. That means you get to keep more of your hard-earned savings.

Mix things up

You can fill your T F S A with a mix of savings and investments, like cash, Guaranteed Investment Certificates, stocks, bonds, mutual funds, and more. Customize your portfolio to suit your risk tolerance and investing horizon.

A flexible account

A T F S A is similar to an R R S P in that it offers tax benefits – however, one advantage of a T F S A is that your funds can be withdrawn at any time. You can also re-invest the amount you’ve taken out – including the interest earned. So, you don’t lose that contribution room.

TFSAs by the numbers

Here are a few ways to make sure you’re enjoying the most of what a T F S A has to offer.
$7,000:Your 2025 T F S A contribution limit.
$102,000 : Your total possible contribution room.
62% : Total percentage of Canadians that have a T F S A.

How to make the most of your TFSA

Here are a few ways to make sure you’re enjoying the most of what a T F S A has to offer.

Make sure you have the right investments

Make sure the investments you hold in a TFSA align with your risk tolerance and horizon. Saving for retirement? Stocks, ETFs and mutual funds are great choices.

Max out contributions

Know your limits and invest within them. This year, the limit for your T F S A is $7,000. The maximum you can contribute to your T F S A, if you haven’t already funded it, is
$102,000

Save early and often

The key to growing your T F S A is to take advantage of it as soon as possible. The earlier you start contributing to your T F S A, the more time your money has to grow tax-free. For easy savings, check out our Continuous Savings Plan.

Take advantage of our savings account rates

On top of everything else a T F S A can do for you, here’s another great reason to save: Special rates and offers to help you make real financial progress right from the start. It’s easy to get started today.

Investments you can hold in your TFSA account

TFSA Calculator

Find out how much money you could save by investing with a Tax-Free Savings Account (T F S A) compared to a regular, taxable bank account with our easy-to-use T F S A Calculator.

Tell us a bit about how you save and we’ll help calculate your potential savings.

Now the page requires users to select information, and the information on the page changes based on your selections.

move the slider to set your initial investment

$2,000$0$100,000

move the slider to set your yearly contribution

$500$50$7,000

move the slider to set the length of time that you’d like to save

20 years1 year40 years

move the slider to set your expected annual growth

5%1%10%

select your income bracket from the dropdown

move the slider to set your initial investment

$2,000$0$100,000

move the slider to set your yearly contribution

$500$50$7,000

move the slider to set the length of time that you’d like to save

20 years1 year40 years

move the slider to set your expected annual growth

3.88%1%10%

select your income bracket from the dropdown

Your results have been updated as is now set to .

Your TFSA summary

You could save $3,121 in taxes over 20 years with a TFSA!
table comparing your total deposits, total growth and total savings with a T F S A versus a taxable account
yearTFSATaxable accountTax saved
2025$2,000$2,000$0
2030$5,454$5,225$229
2035$9,861$9,125$736
2040$15,487$13,841$1,646
2045$22,666$19,545$3,121

Your savings summary

table comparing your total deposits, total growth and total savings with a T F S A versus a taxable account
TFSATaxable account
Your total deposits$12,000$12,000
Your total growth$10,666$7,545
Your total savings$22,666$19,545

Ready to get started?

Book an appointment

Learn more about investing in TFSAs with BMO

Compare: FHSA vs TFSA vs RRSP
Learn about the key differences between FHSAs, TFSAs and RRSPs.
TFSA vs. RRSP: Here’s what you need to know
Wondering which one is best for your savings goals? Let’s go through the differences between a TFSA and an RRSP.
Understanding T F S As: The basics
Not sure how a T F S A works? Brush up on the basics in just a few minutes

TFSA FAQs

General questions

Opening a TFSA

TFSA contribution room

TFSA investment types

Ways to contact us

There are various ways to get in touch. Choose your preferred method.

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