What Investments are Allowed in a TFSA?
When many people think of a Tax-Free Savings Account, they assume that it is literally a savings account. And that’s fair. Because that’s what it’s called.
But it isn’t actually a savings account (at least, not as we normally understand them). And yes, I get it, that’s totally confusing.
In reality, a TFSA is simply an account that you can park all sorts of assets in, like mutual funds, stocks, bonds, GICs, and more. And yes, you can even have a savings account parked in your TFSA.
In fact, anything you can hold in your RRSP, you can hold in your TFSA.
The key thing to remember is that a savings account is just one option for a TFSA. But it’s definitely not the only one.
So just make sure you know your options. And do whatever makes sense for you.
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