A Tax-Free Savings Account (TFSA) allows your savings to grow tax-free. It can hold a variety of investments including mutual funds, GICs, stocks, bonds and ETFs. Unlike RRSPs, money in a TFSA can be withdrawn at any time on a tax-free basis and used for any purpose. The annual TFSA contribution limit for 2023 is $6,500. Unused contribution room can be carried forward. If you have not yet contributed to a TFSA, your total potential maximum allowed contribution limit as of 2023 is $88,000.