(NC) — While many experts agree that the Tax-Free Savings Account (TFSA) is the single most innovative savings vehicle since the introduction of the RRSP, many Canadians are still confused and unsure of how to best leverage this savings tool.

“There happens to be a lot of confusion and misunderstanding regarding the benefits of TFSAs,” says John Finnie, director of investment and insurance services for Meridian. “The simple truth is TFSAs encourage Canadians to save while offering flexibility and versatility to their long-term and short-term financial goals.”

Introduced by the federal government in 2009, a TFSA is a savings vessel that allows contributions to grow tax-free. More importantly, any withdrawals made from a TFSA and any investment income earned is also tax-free. Canadians 18 and over can contribute up to $5,000 a year into a TFSA.

Meridian, Ontario's largest credit union, offers investors the following tips on TFSAs:

Supplement retirement savings: For investors who have maxed out their RRSP contributions for the year, a TFSA is a great way to complement your retirement savings tax-free.

Tax-free benefits for seniors: TFSA are especially beneficial for seniors as neither the income earned within a TFSA and any withdrawals made from a TFSA will impact a senior's eligibility for federal benefits, including Old Age Security and the Guaranteed Income supplement. Plus there is no age cut-off for contributions, whereas the maximum age limit for RRSP contributions is 71.

Make it Automatic: While the deadline for contributing to a TFSA is December 31st of each year, many investors may not be able to make their maximum contribution in one lump sum. By creating a pre-authorized contribution to your TFSA, investors can invest regular and smaller contributions on a weekly or monthly basis.

Seek Expert Advice: By working with a trusted financial advisor, investors can ensure they are maximizing their TFSA growth potential while ensuring they are selecting the right investment options—from mutual funds to GICs—for their specific needs.