Does a maturing GIC affect TFSA contribution room?

Our response:

There are limits on how much you can contribute to your Tax-Free Savings Account (TFSA) each year. Growth on your investments, inside a TFSA, does not affect this contribution room. These previous Investing Questions questions may help provide insight on your TFSA:

• “What happens if gains on the stocks in my TFSA exceed my contribution room? Am I penalized?”
• “How does the CRA know if I made TFSA contributions?”
• “How are GIC rates determined and how is interest paid?”

Learn more about TFSAs and GICs at GetSmarterAboutMoney.ca. We suggest speaking with a registered financial advisor can help you review your goals and savings strategy.