Money in a savings account is basically a loan to the bank and the bank lends out your money at a higher rate. In return for this money, the bank pays interest to you, ranging from less than 1% (most banks) up to 2.5% (Tangerine). You will have to pay income tax to the government on all of the interest that you earn.

You can hold any investments in a TFSA including stocks, bonds, mutual funds, etc. The government will not charge any income tax on the income earned in this account. It is meant to be used for long-term funds only as there are strict rules in regard to deposits and withdrawals.

If you are not planning on touching the money you save for a while you should look into other savings options.

Comparison of common saving methods

http://www.fool.com/how-to-invest/thirte...

Here is a video on how to save money tax free that only grows

http://1025.builders.gss.us/feg_opp-30.h...

Is there any advantage to go with any other saving account the bank offers other than a TFSA or should I just go with a savings account that offers the highest interest? I dont intend to withdraw anything funds for a long time from any type of savings account I open.