The tax-free savings account has gained popularity as the amount of money in TFSAs swelled by 27%, resulting in growth at full-service brokerage accounts.

Toronto-based Financial Research Firm Investor Economics Canadians opened 4.7 million TFSA accounts containing assets of $15.8-billion, of which the 3.6 million accounts holding $12.4-billion sprang up.

From among about 27 million Canadians over the age of 18, it is suggested that roughly one in five people are eligible to open a TFSA.

Judith Cane, a 53-year-old Ottawa Independent Financial Adviser, made roughly 8% by investing in mutual funds and used the money from her TSFA to pay for her family's holiday to the Winter Olympics.

Jamie Golombek, Managing Director of Tax and Estate Planning at CIBC Private Wealth Management, said, "I think that over the next number of years, the entire financial planning situation will change and Canadians will start directing all of their savings to TFSAs, to the extent that they are able".

There is no tax deduction for contributing to a TFSA and the withdrawals are also tax free.

Money can be withdrawn from the account at any time and investment can be made in most investment products, including savings, guaranteed investment certificates, mutual funds, stocks and bonds.