A Tax-Free Savings Account (TFSA) is simply a registered savings account that's available to those aged 18 and older, in which cash and investments can grow tax-free (e.g., investment income, capital gains).
The government sets a limit on how much CRA: Contributions can be deposited into the account each year. When money is taken out of the TFSA, the earnings are not taxed, nor penalties applied. Funds taken out of the account can't be returned without penalty to the account until the following tax year if there's no allowable room remaining, as determined by the government's contribution limits and the amount of deposits you've already made to the TFSA that year.
Contributions to a TFSA aren't tax deductible, nor are administrative or other fees related to operating a TFSA, or any interest paid on money borrowed to contribute to a TFSA.
Each year, the government determines the value of CRA: Contributionsdeposited into the account.