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Small but Mighty: The Power of Saving with a TFSA

At Prosperity Credit Union, we believe good things happen when you give your money a little room to grow—tax-free. Whether you're just starting out or well on your financial journey, a Tax-Free Savings Account (TFSA) is one of the smartest, most flexible tools in your financial toolkit.
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PE
Prosperity Expert
Prosperity Team

Thinking about starting a TFSA? Here’s why your future self will thank you:

Power-Packed TFSA Tips:

  1. Grow It Tax-Free.
    Any interest, dividends, or capital gains earned in your TFSA stay in your pocket—no tax surprises, ever. That means your savings grow faster and stay yours.
  2. Withdraw Anytime, No Penalties.
    Need funds for a trip, car repair, or emergency? You can take money out when you need it—no taxes, no fees, no guilt.
  3. Re-Contribute Later.
    If you take money out, you can re-contribute that same amount the following year, without losing your contribution room. Just don’t overdo it in the same calendar year—CRA isn’t big on surprises.
  4. Use It for Any Goal.
    TFSAs aren’t just for rainy days. Save for a wedding, a cabin at the lake, or even retirement. You decide.
  5. Start Small, Think Big.
    You don’t need a fortune to make the most of a TFSA. Even $25 a month adds up over time—especially when it’s not getting taxed along the way.
  6. Know Your Limit (and Use It!).
    Your TFSA contribution limit grows every year (and it carries forward). As of 2025, the total limit is $95,000 if you’ve never contributed and have been eligible since the program began. That’s a lot of tax-free potential.

Whether you're saving for something big or just building your cushion, a TFSA gives your money room to breathe—and grow. If you're not sure how to make the most of yours, we're always happy to help.

Let’s put your savings to work, the tax-free way.