You need a Social Insurance Number, a bank or credit union, and proof of Canadian residency to open a TFSA

A Tax-Free Savings Account (TFSA) is a registered savings account where the money you earn—interest, dividends, capital gains—is not taxed. You can withdraw money at any time without penalty, and the amount you withdraw becomes available to contribute again the following year. Unlike a Registered Retirement Savings Plan (RRSP), there is no age restriction on withdrawals and no requirement to use the money for retirement.

To open one, you must be a Canadian resident, at least 18 years old, and have a valid Social Insurance Number (SIN). You open it through a bank, credit union, investment firm, or other financial institution—not through the Canada Revenue Agency (CRA). The CRA tracks your TFSA room (how much you can contribute each year) but does not issue the account itself.

Key Takeaways

  • You open a TFSA directly with a financial institution such as a bank or credit union, not with the government.
  • You need a Social Insurance Number, proof of Canadian residency, and a piece of government-issued photo ID to start the account.
  • The CRA tracks your contribution room each year; you can check your available room through My Account or by calling 1-800-959-5525.
  • Your first contribution room depends on the year you turn 18; if you turned 18 before 2009, you have accumulated room from that year forward.
  • You can open a TFSA at almost any bank, credit union, or investment firm; the choice depends on whether you want to hold cash, GICs, stocks, or mutual funds.

What documents you need to bring or provide

Most financial institutions ask for the same core documents. Bring a piece of government-issued photo ID (driver's license, passport, or provincial ID card) and proof of your current address. A utility bill, lease, or recent bank statement dated within the last 90 days usually works for address proof. You will also need your Social Insurance Number.

If you are opening the account online or by phone, you may be asked to upload images of these documents or answer security questions to verify your identity. Some institutions verify your SIN directly with the CRA during the application process. If you do not yet have a SIN, you can obtain one from Service Canada before opening the account.

Where to open a TFSA

You can open a TFSA at any bank, credit union, investment firm, or online-only financial institution. The choice depends on what you want to hold in the account. If you want to keep cash earning interest, a bank or credit union TFSA savings account is straightforward. If you want to buy stocks or mutual funds, you need a brokerage TFSA. If you want a may provide investment certificate (GIC), many banks and credit unions offer TFSA GICs.

Online banks often offer higher interest rates on TFSA savings accounts than brick-and-mortar banks. Credit unions are regulated by provincial bodies rather than the federal government, but deposits are still insured. Compare the interest rate, fees, and investment options across institutions before choosing. Some institutions charge annual fees for TFSA accounts; others do not.

How the CRA tracks your contribution room

The CRA does not issue your TFSA, but it tracks how much you can contribute each year. Your contribution room accumulates starting the year you turn 18. The annual limit changes with inflation and is rounded to the nearest $500. In 2024, the annual limit is $7,000. In 2023, it was $6,500. In 2022 and earlier years, it was $6,000.

If you have never contributed to a TFSA, your total available room is the sum of all annual limits from the year you turned 18 through the current year. If you turned 18 in 2015, for example, your room includes contributions from 2015 through 2024. You can check your available contribution room through CRA My Account (online portal), by calling 1-800-959-5525, or by visiting a Service Canada office. The CRA updates your room once per year, usually in February.

The account opening process at a bank or credit union

In person, the process usually takes 15 to 30 minutes. You provide your ID and proof of address, sign the account agreement, and choose what type of TFSA product you want (savings account, GIC, investment account). The institution verifies your SIN with the CRA. You may be asked about the source of funds you plan to deposit. Once approved, you receive account details and can begin depositing money the same day or within a few business days.

Online or by phone, the process is similar but happens through a secure portal or call with a representative. You upload or describe your documents, answer identity verification questions, and sign electronically. Approval typically takes one to three business days. Some institutions send you a welcome package by mail with your account number and login credentials; others provide everything online immediately.

Opening a TFSA online or by mail

Many banks and investment firms allow you to open a TFSA entirely online. You create a login, upload photos of your ID and proof of address, enter your SIN, and agree to the terms. The institution runs an identity check, sometimes asking you to answer security questions based on your credit history. Once verified, the account is active and you can deposit money by electronic transfer or by setting up automatic deposits.

Some smaller institutions or credit unions may require you to visit in person or mail in signed documents. If you choose the mail route, send copies (not originals) of your ID and address proof along with the completed application form. Keep copies for your records. Processing by mail typically takes one to two weeks after the institution receives your documents.

What happens after you open the account

Once your TFSA is open, you can deposit money immediately. You do not need to deposit the full amount of your available room all at once. You can contribute gradually throughout the year. Any money you withdraw becomes available to contribute again on January 1 of the following year—this is different from an RRSP, where withdrawals do not create new room.

Keep track of your contributions yourself or check your CRA My Account to see what room you have used. If you over-contribute (deposit more than your available room), the CRA charges a penalty tax of 1 percent per month on the excess amount until you withdraw it. The institution does not prevent over-contribution; the responsibility is yours to stay within your limit.

Frequently Asked Questions

Can I open a TFSA if I do not have a Social Insurance Number yet?

No. You must have a valid SIN to open a TFSA. You can obtain one from Service Canada before opening the account. The process takes a few days to a few weeks depending on whether you apply in person or by mail.

What if I am not a Canadian resident?

You must be a Canadian resident to open and hold a TFSA. If you move out of Canada, you can keep the account open, but you cannot make new contributions. Withdrawals are still tax-free. Contact your financial institution if your residency status changes.

Can I open more than one TFSA?

Yes, you can hold multiple TFSAs at different institutions. However, your total contributions across all accounts cannot exceed your annual limit. The CRA tracks your combined room, so over-contributing across multiple accounts still triggers the penalty tax.

How long does it take to open a TFSA?

In person, 15 to 30 minutes. Online, one to three business days for approval. By mail, one to two weeks. Once approved, you can usually deposit money the same day or within one business day.

Do I pay fees to open a TFSA?

Opening the account itself is free at most institutions. Some charge annual account fees (typically $0 to $25 per year), while others charge only when you perform certain transactions like trading stocks. Compare fee structures before choosing an institution.