All Canadian residents can open a Tax Free Savings Account if they’re 18 years of age or older and have filed a tax return.

The Tax Free Savings Account will let you invest while not being taxed on the interest earned or investment earnings.

At Community First, you’ll be able to open Savings Accounts, Guaranteed Investment Certificates (GICs), and Index-Linked Term Deposits.

Unlike an RSP, your contribution to a Tax Free Savings Account will not be deducted from your income on your tax return, but the interest you earn will not be taxed.

As of 2013, you can contribute a maximum of $5,500 a year

If you take money out of your Tax Free Savings Account, you don’t lose the contribution room – you get it back in the following year. If you take it out you will have to wait until the next year before you can put the money back in.

If you don’t make the maximum contribution you don’t lose the contribution room. The unused contribution room gets carried over to the following year. There is no limit to how much contribution room can be carried forward.

You can hold more than one Tax-Free Savings Account with a number of financial institutions, but the total contributions must be within your total contribution limit in that year.

Each year, the government will determine your remaining Tax Free Savings Account contribution limit.

Money you take out of your Tax-Free Savings Account will not affect federal income-tested benefits and credits, so you’re not penalized for saving.