It took a couple years to work out the kinks, but tax-free savings accounts are proving to be a rabidly popular savings option for Canadians, with some financial advisers now recommending them over the stalwart RRSP.
Among the top reasons for the rise in popularity of TFSAs is their flexibility. Money can be pulled out without penalty in case of a financial emergency, TFSAs don't have to converted into a RRIF upon retirement, and they can contain a variety of different types of investments. Investors don't get an immediate tax break the way they do with an RRSP contribution, but investments inside a TFSA grow tax-free.
5 reasons why TFSAs are a smart retirement investment
