If your savings are in a Tax-Free Savings Account (TFSA), you are not taxed while the funds are in the account, or when you decide to withdraw them.
Consider how you plan to use your account. If you are using the account as a regular savings plan, where you may make contributions or withdrawals regularly, read and understand how TFSA rules and penalties for over-contributions work. If you are planning to make frequent withdrawals and contributions, speak to an advisor to determine whether a TFSA is right for you.
Learn more about TFSAs on GetSmarterAboutMoney.ca.