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Money held in a Tax-Free Savings Account (TFSA) can be held in cash, or invested in a variety of investments, such as GICs, mutual funds, stocks or ETFs.

If, for example, your TFSA is currently holds an investment like a mutual fund and you want to instead hold a GIC, you will need to sell your mutual funds. Speak to a financial advisor to understand the impact of selling your mutual funds, such as any costs or fees you must pay.

Speak to your financial institution or advisor before making a move. If you are transferring between two TFSAs at the same financial institution or moving funds to a TFSA at another financial institution, the transfer must be made directly between the TFSAs. If the transfer is done improperly and treated as a withdrawal, you may need to pay a penalty for over-contribution, or you may have to wait until next year to recontribute. Learn more about making transfers between TFSAs on GetSmarterAboutMoney.ca.