Tax-free savings accounts were introduced by the federal government in the 2008 budget as an incentive for Canadians to save and invest for their future. While other countries, such as the U.S. and the United Kingdom, already have similar savings accounts, it is the first of its kind in Canada. The government is calling the TFSA the single most important personal savings vehicle since the introduction of the Registered Retirement Savings Plan (RRSP) in 1957.

“We must ensure Canadians have the right incentives to save for the future.”
Government of Canada, 2008 budget, February 2008