TFSA

The Tax-Free Savings Account (TFSA) is a newer investment vehicle, only introduced in 2009. The name can be misleading to some as it has been marketed by some financial institutions as being a high interest savings account and that is all. In reality you can invest in the same investments as you hold in your RRSP with the caveat that US investments can be subject to US withholding tax. 

TFSAs allow for tax-free growth within the plan for Canadians 18 and over and are very flexible to your needs. Each calendar year you are able to contribute up to the TFSA limit set for the year by the Government of Canada. On top of that you can also contribute any unused contribution room from previous years and any amounts that were withdrawn in the previous year. 

Note: Any amount withdrawn from a TFSA is added back into the account holder's contribution room in the following calendar year.

TFSAs are  different from RRSPs in that withdrawals are not treated as income and therefore you don't pay taxes on those withdrawals. At the same time any growth inside the TFSA is also not subject to tax. This is particular helpful to people who rely on Federal income-tested benefits in retirement such as Old Age Security (OAS) or the Guaranteed Income Supplement (GIS).