TFSA, Explained - Everything You Need To Know About The Tax Free Savings Account For Beginners

The tax free savings account (TFSA) is a registered investment account (that's right, not a savings account) in Canada that let's you invest money and have tax tree gains - and because of that awesome benefit, there's a limit on the amount you can contribute every year. There's a lot to know about the TFSA, and once you do you'll see why it's a great investment account to start out with and take advantage of. By the end of this video, you'll be all set to invest - tax free!

0:00 What is a TFSA?
2:33 Benefits of the TFSA
3:45 The TFSA is an investment account
5:08 How to open a TFSA
6:08 What is the contribution limit?
8:03 Here's an example
8:38 Withdrawing from your TFSA
9:31 Can you lose contribution room?
11:58 Can you have multiple TFSAs?
12:58 How CDIC protects your deposits

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Disclaimer - This content is for education and entertainment purposes only. Steph & Den do not provide tax or investment advice. The information is being presented without consideration of the investment objectives, risk tolerance, or financial circumstances of any specific investor and might not be suitable for all investors. Past performance is not indicative of future results. All investing involves risk, including the possible loss of principal.

[stephandden]

Do you have any questions about CDIC protection of deposits held in a TFSA? Ask away below!

[Inhumaneghost]

Absolutely the best explanation of a TFSA ever. Great job, wish it was explained this way to us in school. I'm passing this on too so many people.

[imagamerful]

It’s a crime that this isn’t taught in high school

[labbdogg]

Mehn, I usually do not comment on Youtube. But damn, you guys did a great job of explaining how the TFSA works. I had to log in to make this comment. Great job guys appreciate it.

[shirazmahdi]

The best video on TFSA ever. Very clear, very detailed and very creative. This is service to humanity !!!

[ronakkumar]

Best explanation for TFSA. Keep up the good work :)

[abdulabdillahi]

I like the work that went into this video, especially dividing the video into multi - mini clips. Loved it. Definitely increased the content's quality. Way to go guy!

[EElia-bjtp]

This video presentation on TFSA stands out as one of the finest. As someone new to the topic, it greatly aided in comprehending the entire concept of TFSA

[Visage]

I just stumbled across this channel and I am surprised you guys haven't got a million subs yet. Amazing video, amazing content, and clear explanations. I know I will be watching many more videos from your channel.

[abu_staif]

Thank you so much for this. I just turned 19, which is the age of majority in BC, so I can open a TFSA account now. I needed this video.

[MaeLees]

Thank you Steph and Dan! your channel helps me so much as i'm trying to become financially literate. As a Canadian, i find it so helpful that your videos are specific to my country! No guess work required. Seriously, your help is invaluable, please keep it up :)

[LuizFrank]

Excellent video. You are very educational, congratulations. I arrived from Brazil 3 years ago and now after becoming a permanent resident, I will be able to create my TFSA. Thank you for the explanations.

[HouseofHalal]

I have a question. As mentioned at 2:16 onwards. Is it worth it to put your emergency savings in a high interest savings account if you have to pay tax on it? Does the benefit outweigh the tax you have to pay on the earned interest rates or are you losing money from that? Would love some more details and specifics on that. Thank you !

[PearlOfJoy]

This video is EVERYTHING. You've answered so many questions! Thank you for sharing!

[wanderlander.abroad]

You guys have explained this so clearly and in so much detail, im honestly so happy i found your channel. When I went to my bank to ask thek how a TFSA worked (and asked them specifically to explain it to me like a 5 year old as I'm not Canadian but a Permanent resident) they couldn't. I still left the office confused (i did open it thank goodness) and it would've been so helpful if they would have explained it the way you guys did. Thank you thank you thank you!!

[tineschrijvers]

Excellent video. So clearly explained. First time I saw a video by you & the simplicity of explanation, using simple language to explain terms meanings, showing pictures and speaking clearly & slow enough to catch all the info were the reason I subscribed immediately.

[mukeshpuri]

Perfectooo... thats a Deep and 100% knowledge related to TFSA in one video. Really Awesome ❤

[otsam]

Cool video, I needed this. The whole investment field was quite overwhelming, basic intros like this are helpful 👍🏽

[saadfarooqui]

This video is so dope. Finally a proper explanation of TFSA!!

[stacy-annmorgan]

Thanks for the info on the CDIC. Much help for a quick understanding.