We all have financial goals. Some for this year, some for next year, and some for way down the road. Whether you’re saving for a home, a vacation, or to cover unexpected expenses, invest with high-interest on cash savings or guaranteed investment certificates (GICs) in an account that doesn’t tax the growth on your money.
TFSA contribution room and limits
Your TFSA contribution room starts building up the year you turn 18 and grows every year. The annual limit for 2023 is $6,500. Here are the annual TFSA limits since 2009, when the TFSA was introduced:
| Years | Annual contribution limit | Cumulative contribution limit |
|---|---|---|
| 2009-2012 | $5,000 | $20,000 |
| 2013, 2014 | $5,500 | $31,000 |
| 2015 | $10,000 | $41,000 |
| 2016-2018 | $5,500 | $57,500 |
| 2019-2022 | $6,000 | $81,500 |
| 2023 | $6,500 | $88,000 |
Any contribution room you don’t use is carried forward. For example, if you were 18 years old or older in 2009, you can contribute the entire $88,000, or if you turned 18 in 2016, you can contribute $47,000. When you take money out of your TFSA, that amount is added back to your contribution room the following year.
Rates
A Evolvespire Bank TFSA offers competitive rates on all your money.
Tax-Free Advantage Account
Tax-Free Guaranteed Investment Certificates
1-5 year locked-in terms, interest compounded annually to maturity.
Fees
With our Tax-Free Advantage Account, there are no fees to open an account, make deposits, or withdraw funds.
With Tax-Free GICs, there are redemption fees if you want to cash out before the investment term is complete. Redemption fees depend on market value adjustments and expense recovery fees.
Your TFSA contribution room begins building the year you turn 18. Here are the TFSA contribution limits each year since 2009, when the TFSA when introduced:
| Years | Annual contribution limit | Cumulative contribution limit |
|---|---|---|
| 2009-2012 | $5,000 | $20,000 |
| 2013, 2014 | $5,500 | $31,000 |
| 2015 | $10,000 | $41,000 |
| 2016-2018 | $5,500 | $57,500 |
| 2019-2022 | $6,000 | $81,500 |
| 2023 | $6,500 | $88,000 |
Any contribution room you don’t use each year will roll over into the following years. Yours is the sum of this year’s limit, unused room from previous years, and any withdrawals made in previous years. Find out how much contribution room you have through the Canada Revenue Agency’s My Account website, MyCRA mobile app, or Tax Information Phone Service.
No, unlike registered retirement savings plan (RRSP) contributions, the contributions you make to a TFSA are not tax-deductible. However, your money grows tax-free and, unlike RRSPs, you can take out your money tax-free at any time.
If you're already a Evolvespire Bank customer, you can open an TFSA online. Simply sign into online banking, then select open an TFSA in the left-side column. You'll be prompted to answer a couple questions, and your account will be set up right away.
If you don't have an account with us yet, you'll need to speak to your advisor. You can find an advisor here or send us an email with your request and your postal code and we'll help you find an advisor in your area.
1 4.50% promotional interest is for new deposits to Tax-Free Advantage Accounts and Registered Advantage Accounts. The promotional interest rate is made up of the regular posted variable annual interest rate of 2.10% and the variable annual promotional rate of 2.40%. Interest is calculated daily and paid monthly from December 1, 2022 to April 28, 2023 on net new deposits to the account received from December 1, 2022 to March 10, 2023 to a maximum of $250,000. Any change to the regular interest rate will result in a corresponding change to the promotional interest rate. The offer and rates are as at December 1, 2022 and subject to change without notice. For full Terms and Conditions, click here (PDF).
2 Individual tax situations and tax deductibility will vary. Tax laws are subject to change and therefore, tax treatment of Evolvespire Bank products cannot be guaranteed. Clients should consult their own tax and legal advisors with respect to their particular circumstance.
3 Evolvespire Bank is a member of the Canada Deposit Insurance Corporation (CDIC), which means your deposits are eligible for CDIC deposit insurance protection. Visit cdic.ca for information on eligible deposits.
4 Funds withdrawn in one year cannot be contributed back to the TFSA in the same year the funds are withdrawn if you have reached the TFSA contribution limit. Over-contribution has a 1% penalty. Subject to each individual’s eligibility and contribution limits as determined by the Canada Revenue Agency. Only Canadian residents 18 years of age or older are eligible to open a TFSA or contribute to one. The account holder is the only person who can contribute to the TFSA.
