Tax-Free Savings Account - TFSA

See: Roth IRA.

Tax-free is totally different than tax-deferred, like what you'd find in an IRA. In a Roth, you pay the tax upfront, and then your subsequent gains from investing are tax-free.

So that's one form of "tax-free" savings account. There also exist tax-free savings accounts that are basically just bundles of used muni bonds about to come due.

The good side? No tax. The bad side? Low interest rate returns.

See: Money Market Fund. See: Commercial Paper.