FAQ: What is the difference between TFSA Contributions and TFSA Savings Contributions?

The TFSA savings balance refers to funds in a TFSA meant for short term goals and only accrues interest, while the TFSA Investment balance refers to funds invested for long-term growth and uses the assumptions laid out in the Investment Plan section. Both accounts are subject to TFSA contribution room but use different growth assumptions.

TFSA Savings would be for a regular high interest savings account, use this for emergency savings or a home downpayment.

TFSA is an Investment Account and should be used for long term financial goals like retirement investments.