$191.75/Month Free with TFSA: A Tax-Free Savings Account (TFSA) is one of the most powerful tools available to Canadians for building wealth — tax-free. If you’ve come across messages like “$191.75/month free with TFSA – check if you qualify now”, you’re not alone. These promotions often refer to strategies that use your TFSA contribution room to generate monthly passive income, potentially up to or exceeding $191.75/month. In this article, we’ll explore what a TFSA is, how it works, and how you can actually generate tax-free monthly income using your TFSA — legally and efficiently. We’ll also help you check if you qualify and guide you through the steps to get started.
$191.75/Month Free with TFSA
The TFSA is more than just a savings account — it’s a tax-free investment powerhouse. With the right strategy, you can generate over $191.75/month in tax-free income, depending on how much you’ve contributed and your investment choices. If you’re eligible, it’s worth taking action. Check your TFSA room, invest smartly, and enjoy the benefits of earning tax-free income every month. Whether you’re saving for a dream vacation, early retirement, or just boosting your monthly cash flow, the TFSA is a must-use tool for Canadians.
| Topic | Details |
|---|---|
| TFSA Annual Contribution Limit (2025) | $7,000 |
| Cumulative Contribution Room (as of 2025) | Up to $102,000 (if eligible since 2009) |
| Tax Benefits | No tax on gains, dividends, or withdrawals |
| Eligible Investments | Stocks, bonds, ETFs, GICs, mutual funds |
| Monthly Income Potential | Up to $191.75/month or more with dividend/yield-focused portfolios |
| Who Qualifies | Canadian residents aged 18+ with a valid SIN |
| Official Info | CRA TFSA Guide |
What is a TFSA?
A TFSA (Tax-Free Savings Account) is a registered account introduced by the Canadian government in 2009. It allows you to save and invest without paying any tax on the interest, dividends, or capital gains earned — and you can withdraw funds at any time, for any reason, tax-free.
Unlike an RRSP, your contributions are not tax-deductible. However, the real benefit is that all growth and withdrawals are completely tax-free, which can significantly increase your long-term wealth.
TFSA Contribution Limits
Each year, the government allows Canadians to contribute a specific amount to their TFSA.
Annual TFSA Contribution Limits by Year
| Year | Limit |
|---|---|
| 2009–2012 | $5,000/year |
| 2013–2014 | $5,500/year |
| 2015 | $10,000 |
| 2016–2018 | $5,500/year |
| 2019–2022 | $6,000/year |
| 2023 | $6,500 |
| 2024–2025 | $7,000/year |
If you’ve never contributed and were eligible since 2009, your total contribution room is $102,000 as of 2025.
Can You Really Get $191.75/Month from a TFSA?
Yes — but it depends on how you invest the funds.
If your TFSA is invested in dividend-paying stocks or income-generating ETFs, it’s possible to generate consistent tax-free income. Here’s a simple example:
- Let’s say you’ve maxed your TFSA to $102,000
- You invest in a dividend stock or ETF yielding 7% annually
- That’s $7,140/year in tax-free dividends — or about $595/month
Now, even with more conservative yields around 2.25%, you’re still looking at around $191.75/month, completely tax-free.
This is what the ad likely refers to — the potential to earn income by investing inside your TFSA, not a direct government payout.
How to Start Earning $191.75/Month Free with TFSA?
Step 1: Open a TFSA Account
You can do this at any major bank, credit union, or online brokerage like Questrade, Wealthsimple, or RBC Direct Investing.
Step 2: Check Your Contribution Room
Use the CRA’s “My Account” or call them to confirm how much you’re allowed to contribute.
Step 3: Fund Your Account
Transfer cash from your bank or other investments. Make sure not to exceed your limit.
Step 4: Invest for Income
Look into:
- Dividend-paying stocks (e.g., Canadian banks or utilities)
- REITs (Real Estate Investment Trusts) that pay monthly
- ETFs that distribute income (e.g., ZWC, XDIV, VDY)
- GICs or Bonds (lower yield, more stability)
Step 5: Reinvest or Withdraw
You can either reinvest your income for compounding or withdraw it monthly, totally tax-free.
TFSA vs RRSP: Which Is Better?
| Feature | TFSA | RRSP |
|---|---|---|
| Contributions | Not tax-deductible | Tax-deductible |
| Withdrawals | Tax-free | Taxable |
| Contribution Room | $7,000/year (2025) | Based on income (18% of previous year’s income, up to $31,560 in 2025) |
| Best For | Short- and long-term savings | Retirement savings |
TFSAs are more flexible and ideal if you want to access your funds without tax implications. RRSPs are better for high earners looking for tax deductions.
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Frequently Asked Questions About $191.75/Month Free with TFSA
1. What happens if I overcontribute to my TFSA?
You’ll be charged a 1% tax per month on the excess amount. Always check your contribution room via the CRA before adding more.
2. Can I open more than one TFSA?
Yes, but the total across all accounts cannot exceed your contribution limit. It’s often better to consolidate for easier tracking.
3. Can I lose money in a TFSA?
Yes — if you invest in stocks or ETFs, the market can fluctuate. Choose investments wisely based on your risk tolerance.
4. Are TFSA withdrawals reported on taxes?
No. Withdrawals are not reported as income and don’t affect your eligibility for government benefits.
5. What’s the best TFSA investment for monthly income?
Monthly dividend-paying ETFs like ZWC or REITs offer regular payouts. Conservative options include laddered GICs or bond ETFs.
