You can have only one TFSA per person, but the rules around joint accounts and multiple registrations are more complicated than they first appear

The Canada Revenue Agency (CRA) allows you to hold exactly one Tax-Free Savings Account in your name at any given time. If you open a second TFSA in your own name, the CRA will treat the second account as a non-registered account, meaning growth and withdrawals lose their tax-free status. You will still owe tax on the investment income, even though you intended it to be sheltered.

The one-per-person rule applies regardless of how many financial institutions you deal with or how many times you move your TFSA between banks or investment firms. Opening a new TFSA at a different bank does not give you a second account—it straightforward moves your existing TFSA registration to a new institution. The CRA tracks TFSA registrations by your Social Insurance Number, not by the number of accounts you physically open.

Spouses and common-law partners can each hold their own separate TFSA. This is not a joint account; it is two individual accounts with two separate contribution limits. A couple can together contribute up to twice the annual limit, but each person's account remains in their own name and under their own control.

Key Takeaways

  • You are allowed one TFSA registration per person; a second account opened in your name becomes a non-registered account and loses tax-free treatment.
  • Moving your TFSA from one bank to another does not create a second account—it transfers your existing registration.
  • Each spouse or common-law partner can hold their own separate TFSA with their own contribution room.
  • If you accidentally open multiple TFSAs, contact the CRA when ready to designate which one is your registered account; the others will be treated as taxable.
  • Your TFSA contribution limit is based on your age and the calendar year, not on the number of accounts you hold.

What happens if you open a second TFSA by mistake

If you have already opened two TFSAs without realizing the rule, the CRA will not automatically close one. Instead, both accounts will exist, but only one can be your registered TFSA. Any income earned in the non-registered account is subject to tax, and you may face penalties if you do not correct the situation.

The CRA allows you to designate which account is your official TFSA. You do this by contacting the CRA directly or by working with your financial institution to notify them. Once you designate one account as your TFSA, the other becomes a regular savings or investment account. Money already in the non-registered account stays there, but future contributions should go only to your designated TFSA.

If you have contributed to both accounts in the same year, you may have exceeded your annual contribution limit. The CRA will assess an overcontribution penalty of 1 percent per month on the excess amount until you withdraw it. The sooner you contact the CRA to correct the situation, the shorter the penalty period.

Moving your TFSA between institutions

Transferring your TFSA from one bank or investment firm to another is a common and tax-free process. When you move your account, you are not creating a new TFSA—you are moving your existing registration. The CRA sees this as a single account that has changed custodians.

There are two ways to move a TFSA: a direct transfer or a withdrawal and redeposit. A direct transfer is the safer route. You ask your new institution to request the transfer from your old one, and the money moves directly without you touching it. This method does not count against your contribution limit for that year, even though money is moving between accounts.

A withdrawal and redeposit is riskier. If you withdraw money from your TFSA and then deposit it into a new TFSA at a different institution, the CRA may see this as a contribution in the year you redeposit it. If you have already used your contribution room that year, you could face an overcontribution penalty. Always use a direct transfer when moving between institutions.

How the CRA tracks your TFSA registration

The CRA maintains a central registry of all TFSA registrations linked to your Social Insurance Number. When a financial institution opens a TFSA for you, they report it to the CRA. If you open a second account at a different institution, the CRA will see both registrations and flag the second one as invalid.

Financial institutions are required to report TFSA activity to the CRA, including contributions, withdrawals, and transfers. This reporting happens annually, usually in the spring following the tax year. The CRA uses this data to verify that you have not exceeded your contribution limit and that you hold only one registered TFSA.

If the CRA discovers you have two active TFSAs, they will contact you to clarify which one is your official account. They may also assess penalties if contributions to both accounts exceeded your annual limit. This is why it is important to keep track of your TFSA registration and to notify the CRA when ready if you suspect you have opened a second account.

Contribution room does not multiply with multiple accounts

Your annual TFSA contribution limit is set by the CRA based on your age and the calendar year. For 2024, the limit is $7,000 per year for individuals aged 18 and over. This limit does not increase if you hold multiple accounts, and it does not reset if you move your TFSA to a new institution.

If you have two TFSAs and contribute $4,000 to each one in the same year, you have contributed $8,000 total—$1,000 more than your annual limit. The CRA will assess a penalty on the $1,000 overcontribution. The fact that the money is spread across two accounts does not change this calculation.

Your lifetime contribution room accumulates year after year. If you have never contributed to a TFSA, your room as of January 1, 2024, depends on when you turned 18. The CRA publishes your available contribution room on your My Account portal, and this figure reflects all TFSAs you have ever held, not just your current one.

What to do if you discover you have two TFSAs

Contact the CRA as soon as possible. You can reach them at 1-800-959-8281 or through your My Account portal online. Have your Social Insurance Number and the details of both accounts ready, including the institution names and account numbers.

Tell the CRA which account you want to keep as your registered TFSA. They will designate that account as your official registration and treat the other as a non-registered account. If you have contributed to both accounts in the current year or in previous years, the CRA will calculate whether you have exceeded your contribution limit and assess any penalties owed.

Once the CRA has designated your official TFSA, move any money from the non-registered account to your registered TFSA if you have contribution room available. If you do not have room in the current year, you can leave the money in the non-registered account and move it later when you have contribution room, or you can withdraw it entirely.

Frequently Asked Questions

Can my spouse and I have a joint TFSA?

No. TFSAs must be registered in one person's name only. You and your spouse can each hold your own separate TFSA, and each of you has your own contribution limit. Some couples use a spousal RRSP strategy instead, but that is a different type of account with different rules.

If I close my TFSA and open a new one at the same bank, do I get a second account?

No. Closing and reopening a TFSA does not create a new registration. The CRA sees it as the same account. However, if you withdraw money and do not redeposit it in the same calendar year, that withdrawal counts against your contribution room and you cannot put it back until the following year.

What if I moved my TFSA to a new bank and forgot to close the old one?

Contact your old bank when ready and ask them to close the account. If money is still in it, ask them to transfer it to your new TFSA or withdraw it. Then contact the CRA to report that you have two registrations and ask them to designate only one as active. The sooner you do this, the less likely you are to face penalties.

Does my TFSA contribution limit reset if I move to a different province?

No. Your TFSA contribution limit is set by the federal government and does not change based on where you live. The limit is the same across all provinces and territories.

Can I have a TFSA and an RRSP at the same time?

Yes. A TFSA and an RRSP are separate accounts with separate rules. You can hold both simultaneously, and each has its own contribution limit. Many people use both accounts as part of their overall savings strategy.