The Federal Government allows Canadians, 18 or older, to contribute a certain amount to their tax-free savings account every year.

If you have an account, the government won’t tax you on any interest you earn, including capital gains. You won’t even be taxed when you take money out. If you do take money out from your TFSA, you’ll get the contribution room back the next year. If you don’t use up all the contribution room, you can carry it forward to the following year without limit.