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Definition: TFSA (Tax-Free Savings Account)

A TFSA is a Canadian account that allows individuals to earn tax-free investment income. Contributions to a TFSA are not tax-deductible, but withdrawals (including investment income) are tax-free.

A TFSA is not limited to a savings account. You can hold many different types of investments in a TFSA, such as GICs, stocks, bonds, and more.