A Tax-Free Savings Account (TFSA) is a savings account that helps you grow money. Contributions to TFSAs and any earnings are generally tax-free, and you can withdraw funds anytime without a penalty.
Open a TFSA with Neo Invest™. Choose TFSA as the account type when you set up an investment goal. Get started today with a TFSA by going to your Invest account and selecting +Add Goal.
Benefits of TFSAs
TSFAs are a popular choice for savings and investments in Canada. Here are a few benefits that TFSAs offer:
- Your contributions or earnings generally won’t be taxed
- You can withdraw funds anytime without a penalty (in most cases)
Annual TFSA contribution limit
You can contribute (deposit amounts) up to your annual TFSA contribution limit. Check your maximum tax-free contribution amount in your CRA My Account. Exceeding the contribution limit incurs a 1% penalty per month on excess deposits. Consult with a financial advisor if you have any questions about your TFSA contribution limit.
Your annual TFSA contribution limit is the combined total of all your TFSA contributions (deposit amounts) across individual TFSA accounts.
Add funds to your Neo Invest TFSA
To fund your Neo Invest TFSA, you can add funds to your investment goal from a Neo Everyday account or link a bank to Neo to move funds from an external bank account.
It takes approximately 6 to 9 business days for funds to be transferred and invested into your selected portfolio from a Neo Everyday account or an external bank account.
Neo can’t cancel or stop a transfer to your TFSA after you add funds from a Neo Everyday account or an external bank account.
Cancel Auto-Invest for your TFSA
If you’ve already set up recurring deposits to your TFSA investment goal and you want to stop the regular contributions, you can disable Auto-Invest from the Neo app or website.
T5 slip for your TFSA
If you earned returns on your investment, you’ll get the T5 slip at the end of February every year. You’ll receive a notification from Neo when your T5 slip will be available.