Benefits of a TFSA vs. a Non-registered (Taxable) Investment

You’ve already paid tax on the income and capital gains you’ve earned, so why not let your investments grow tax free? Compared to a non-registered account, a TFSA gives your investments the opportunity to grow faster because earned income within the TFSA is tax-free.

Get started with our TFSA vs. RRSP comparison chart.

Source: Edward Jones. Assumes 21% average tax rate based on a portfolio consisting of 40% interest, 30% dividends and 30% capital gains income for a middle-income earner based on a $5,000 annual contribution for 15 years and a 7% annual return. Past performance is not an indication of future results.