Maximum TFSA Impact: 2 TSX Stocks to Help Multiply Your Wealth

If you want to maximize the impact a TFSA (tax-free savings account) can have on your wealth, make sure you invest your capital and don’t just put it in a savings account with a “high interest rate” (and by high interest we mean 1% to 3%).

Although the TFSA is referred to as a savings accountit’s more like that composite account. If you do not pay tax on your investment profit, you can significantly increase your annual return over time.

Don’t waste your TFSA on savings accounts with low “high” interest rates

If you’re only making 1% to 3% on a savings account, who really cares about the taxes you save? Those gains are minuscule compared to a stock that could double, triple or tenfold your capital. The fact is that if you only use your TFSA as a savings account, you will lose value due to inflation, regardless of your tax savings or not.

If you want to multiply your wealth, you would be wise to invest in something better than a savings account. Canadians can purchase indexes, exchange-traded funds or individual stocks within a TFSA. Here at The Fool, we love individual stock portfolios. If you are looking for maximum prosperity impact, Stantec (TSX:STN) and TFI International (TSX:TFII) are interesting blue chip stocks to buy today.

Stantec: A silent compounder

With a market capitalization of $11.5 billion, Stantec is a major global engineering, architecture and environmental company. After overhauling its strategy in 2020, this stock has delivered strong returns. This TFSA stock is up 162% over the past five years and 335% over the past ten years.

Stantec has helped shape several global trends, such as data center development, large-scale infrastructure renewal, climate change adaptation and electrical grid improvements. It has used an intelligent acquisition strategy to position its services in the right place at the right time.

Over the past five years, Stantec has demonstrated operating leverage, with low double-digit annual revenue growth and high earnings per share growth. This is a well-managed business that should continue to grow within a TFSA in the coming years.

TFI International: a blue chip share for the long term

With a market capitalization of $13.8 billion, TFI International is one of Canada’s largest trucking and transportation companies. Although the stock is up 81% over the past five years, it is down about 11% over the past year. This stock is up 730% in the last 10 years!

It has been a difficult freight environment for several years. Tariffs and trade wars certainly haven’t helped. However, things seem to be improving. TFI has had a number of underperforming segments in the US, which have begun to turn around in recent quarters. In fact, it is gaining momentum due to the boom in AI and data centers.

Overall, TFI is a well-managed, very cash-generating company. Traditionally, it has used that money for acquisitions. However, because the stock price was low, TFI aggressively bought back shares. That’s the kind of capital allocation a long-term shareholder wants, which is why TFI could be a great addition to a long-term TFSA portfolio.

The TFSA takeaway

You don’t need to own standout stocks to earn strong returns in your TFSA. Quality companies can deliver exceptional results, especially if you are patient. These investments are certainly better than any type of return you would get from an interest-bearing savings account alone. If you want to enjoy tax freeuse stocks to earn big returns within your TFSA.