The Tax Free Savings Account(TFSA) may have been deliberately misnamed.
The point of a TFSA is to invest as opposed to save. Do you know the crucial difference?
Growth within a TFSA is not taxed. Nor will you pay tax on any withdrawals from a TFSA. This is unlike a nonregistered or open account, where the growth and withdrawals are taxed.
Yet where do the majority of TFSA holders open an account? In bank savings accounts! In those accounts at today’s abnormally low interest rates you will not even make peanuts, You might make half a peanut as I told my niece. Putting your money in a TFSA that makes a marginal return is totally defeating the purpose of investing instead of saving.