We’re here to help you make better money moves by breaking down the Tax-Free Savings Account (TFSA) versus the First Home Savings Account (FHSA), and busting some of the biggest investing myths that might be holding you back from reaching your money goals.
TFSA versus FHSA: Which is best?
TFSAs and FHSAs both let your money grow tax-free, but they’re built for different goals. So which one should you use?
🏆 TFSA: The all-purpose MVP
A flexible, tax-free account that can be used to invest for anything, big or small, short- or long-term: |
✅Money grows tax-free, allowing you to access your money whenever you want. |
✅ No deadline for using the money: spend or invest anytime. |
✅Contribution limit: $7,000 for 2026, but unused room carries over! |
💡 Best for: General savings, long-term investing or big purchases before buying a house. |
🏡 FHSA: The first-time buyer’s secret weapon
| A tax-advantaged account that helps you save for a first home: |
✅ Contributions are tax-deductible, meaning the money you put in now can help you pay less taxes during the year. |
✅ Money grows tax-free, and when you withdraw it for a qualifying home purchase, you don’t pay tax on it! |
✅ Hold your money in the account for up to 15 years. |
✅ Contribution limit: $8,000 per year, up to a $40,000 lifetime maximum; unused room carries over (up to $8,000). |
💡 Best for: If you think you might buy a home in the next decade or so, this account could be a great choice for you. |
A potential power move: Use both accounts
➡ If you’re saving for a house: you could use your FHSA first (hello, tax refunds!).
➡ If you’re unsure about homeownership: you could start with a TFSA, since it’s more flexible.
➡ If you’re a pro saver: you could combine both, by investing in your TFSA for general growth and in your FHSA for future home savings.
Bottom line: If you’re planning to buy a home, the FHSA has strong advantages. But if you’ve got other money goals, the flexibility of a TFSA may be a better fit. The best part? You don’t have to pick just one.
Top investing myths, busted
There’s a lot of noise in the financial and money world. Let’s quickly clear up some of the biggest myths that could be holding you back.
Myth #1: You need a lot of money to start investing.
If you have coffee money, you have investing money. The days of needing thousands of dollars to get started with investing are long-gone, especially with investing apps making it more accessible. Also, small amounts can add up fast when you’re putting your money to work over time.
Myth #2: Investing is time-consuming.
Investing apps (like Investly) can help you do the heavy lifting, so you don’t need to analyze stock charts or memorize financial terms. We make getting started easier.
Myth #3: Investing is too risky.
Investing isn’t risk-free, but there are ways to help manage risk. A diversified portfolio (meaning you hold different types of investments, like stocks and bonds) can help you spread out risk. Whether you’re more “slow and steady” or open to taking on more risk, Investly has portfolios designed to match your comfort level.