Another tool in the savings toolbox.

Having the right tools in your investment toolbox makes all the difference. When it comes to savings, a TFSA is incredibly versatile and offers many benefits,

Your money grows tax-free. Unlike other registered savings plans, you don’t get a tax deduction for putting money into your TFSA. However, the investments inside the plan can earn returns without those returns being taxed, which can help build your savings faster.

You don’t need to have a traditional income. Your contribution room isn’t determined by your income, making it an excellent option for students, seniors, and the self-employed.

You won’t be dinged when it comes time to withdraw. You can withdraw your money anytime without worrying about paying taxes on your original contribution — or the returns you’ve earned inside the plan.

It’s a flexible way to save. While you can certainly use your TFSA to help save for long-term goals like retirement, they’re also well-suited to shorter-term savings goals like buying a car, saving up for a down payment on a house, or even going on a big trip.