Here’s an update of my post from January 2015 on TFSA (Tax Free Savings Account) accumulation.
Since 2009, one can contribute to a TFSA and any investment income earned is tax free.
Assuming a 4% annual return, and the maximum is contributed each year at the beginning of each year, one can expect to have almost $63,000 by the end of 2017! The magic of compounding and accumulation.
| Year | Maximum allowed | Year-start balance | Contribution on Jan 1st | Interest rate | Interest earned | Year-end balance saved |
| 2009 | 5,000.00 | 0.00 | 5,000.00 | 4.0% | 200.00 | 5,200.00 |
| 2010 | 5,000.00 | 5,200.00 | 5,000.00 | 4.0% | 408.00 | 10,608.00 |
| 2011 | 5,000.00 | 10,608.00 | 5,000.00 | 4.0% | 624.32 | 16,232.32 |
| 2012 | 5,000.00 | 16,232.32 | 5,000.00 | 4.0% | 849.29 | 22,081.61 |
| 2013 | 5,500.00 | 22,081.61 | 5,500.00 | 4.0% | 1,103.26 | 28,684.88 |
| 2014 | 5,500.00 | 28,684.88 | 5,500.00 | 4.0% | 1,367.40 | 35,552.27 |
| 2015 | 10,000.00 | 35,552.27 | 10,000.00 | 4.0% | 1,822.09 | 47,374.36 |
| 2016 | 5,500.00 | 47,374.36 | 5,500.00 | 4.0% | 2,114.97 | 54,989.34 |
| 2017 | 5,500.00 | 54,989.34 | 5,500.00 | 4.0% | 2,419.57 | 62,908.91 |
