Starting in 2009, a tax-free savings account (TFSA) is a new way for residents of Canada to set money aside tax free throughout their lifetimes.
Contributions to a TFSA are not deductible for income tax purposes and the income earned in the account (for example, investment income and capital gains) is tax-free, even when it is withdrawn. Interest on money borrowed in order to contribute to a TFSA is also not tax-deductible.
The above definition is copied from CRA site.
The person who is at least 18 and with valid SIN card and is a Canadian resident can have this kind of account.
For 2009, if you are eligible, you can contribute up to $5,000 to your TFSA. After 2009, the annual TFSA dollar limit will be indexed to the inflation rate.
It is one kind of Tax Free tools to save your money.
There is one issue of TFSA vs RRSP or other unregistered investment.
Capital Gain and /or Capital Loss