TFSA is $5000 per person per year, since 2009, as swiper indicates. So if you are part of a couple you can currently have up to $40,000 in some type of tax free account, or $20,000 if it's just you, obviously.
I've never heard of the People's Trust Company before, and managing my money is a big hobby of mine, so I'm fairly aware of major Canadian banks, interest rates, etc. I'm very suspicious of that advertised rate. I suspect it's a "teaser" rate. They try to encourage lots of people to put their money into that account and then the rate drops. Since there's more paperwork involved in moving TFSAs to a different bank, lots of people won't bother to move their money when the rate drops. I'm not sure if they can try to charge a fee to transfer money either - they probably can and will probably try to.
The two major online banks I'm familiar with and comfortable using are ING Direct and PC Financial. They are currently offering TFSAs at only 1.4%. This has been very consistent over many years now (it's extra low now) and haven't had an advertised rate for a savings account that is higher than the 5 year GIC. It makes no financial sense for a bank to have a higher rate on money you can withdraw at any time, so I'm sure they will drop that rate to be closer to what other banks are offering.
For safe short term savings you're not likely to get more than 2-3% right now, anywhere. I don't know what city you're in, but I'd look into credit unions. They seem to offer the most competitive rates for low risk accounts.