How does a self-directed TFSA at TD Bank work?

Asked 4 years ago

I have a bank account at TD Direct Investing and consider having a self-directed TFSA.

Td bank Tax-free savings account (tfsa)Self-directed tfsa

Andrew Moran

Friday, June 25, 2021

A self-directed tax-free savings account (TFSA) essentially means that you are in control of where your money goes.
You open a TFSA at TD Bank and then you pick where your deposits go. This could be a savings account, mutual fund, stock trading (open a TD brokerage account as you have done), GIC, and every other type of saving and investment vehicle available at the financial institution.
With a TD Direct Investing account, you can buy and sell stocks using your TFSA, with an annual contribution limit of $6,000.
For the most part, you pay zero taxes on your capital gains and dividend payments.