The Tax Free Savings Account (TFSA) has been around for a few years now. A TFSA can be used for virtually any type of savings goal. So, what are you saving for in your TFSA?
When TFSAs were first introduced in 2009, my husband and I each opened one up immediately. We had very little knowledge of how we could use them, but we were attracted by the feature of not having to pay income tax on any interest we earned on the accounts.
Consider investing – As time progressed and we learned more about the TFSA, we bought some investments within our TFSAs, as we realized that we could save for longer term goals within these accounts, too, not just short term ones.
Open more than one – We also discovered that we could open up more than one – by doing so we could save for different savings goals in different TFSAs, eliminating confusion.