Personal Finance

Official RFD thread for Tax Free Savings Accounts (Updated 2021-JAN-08)

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Dec 17, 2008
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Winnipeg

Official RFD thread for Tax Free Savings Accounts (Updated 2021-JAN-08)

Things to Note:
- Rates were last updated as of the date in the thread title at the top.
- The order listed is from highest rate to lowest rate. If multiple accounts have the same rate, they will be listed in alphabetical order.
- Only accounts with a savings rate of 1.25% or higher will be listed. *Due to COVID-19, Temporarily Adjusting to any account with 1.00% or more.
- The rates are assumed to be earned on the full balance starting at $0.01 - Unless specifically mentioned.
- Interest is calculated on the daily closing balance and paid monthly unless stated otherwise.
- Only accounts available to all Canadians (except Quebec) will be listed.
- Note: most of these accounts require that you pair the TFSA savings account with a non-registered savings account to be able to deposit or withdraw.

Other Helpful Links:
- High Interest Savings Account Rates: HERE

NOTE: Short Term Offers will be listed below in the thread summary after this first post (members please update as you see fit, and remove old ones, as I will not actively be updating the thread summary post)

*EQ Bank - "Tax Free Savings" -- Rate: 2.30% (No transfer fee)

*Canadian Tire - "Tax Free Savings" -- Rate: 1.80% ($50 transfer fee)

*Rosenort Credit Union – “TFSA Variable Savings” – Rate: 1.70% (Unknown Transfer Fee)
-- Note: Interest is paid annually based on the minimum monthly balance. Interest is paid in January. 1st transaction free per month, $5.00 per additional. You must call or email the credit union to withdraw from the TFSA savings account, it cannot be done online.

*Access Credit Union - "TFSA Variable Savings" -- Rate: 1.60% (Unknown Transfer Fee)
-- Note: Interest is paid annually based on the minimum monthly balance. Interest is paid in January. 1st transaction free per month, $5.00 per additional.

*Steinbach Credit Union - "TFSA Variable Savings" -- Rate: 1.60% (Unknown Transfer Fee)
-- Note: Interest is paid annually based on the minimum monthly balance. Interest is paid in January. 1st transaction free per month, $5.00 per additional.

*Motive Financial - "TFSA Savings" -- Rate: 1.55% ($50 transfer fee)

*Wealth One Bank - "Tax-Free Savings Account" -- Rate: 1.50% ($50 transfer fee)

*People's Trust - "Tax Free Savings" -- Rate: 1.30% (No transfer fee)

*AcceleRate Financial - "AcceleRate TFSA Savings" -- Rate: 1.20% ($50 transfer fee)

*Achieva Financial - "TFSA Savings" -- Rate: 1.20% (No transfer fee)

*Alterna Bank - "TFSA eSavings" -- Rate: 1.20% ($50 transfer fee)

*Implicity Financial - "TFSA Savings Account" -- Rate: 1.20% ($50 transfer fee)

*Maxa Financial - "TFSA Savings" -- Rate: 1.20% ($75 transfer fee)

*Outlook Financial - "TFSA High Interest Savings Account" -- Rate: 1.20% ($50 transfer fee)

*Motusbank - "TFSA Savings Account" -- Rate: 1.10% ($50 transfer fee)

*Ideal Savings - "TFSA Savings" -- Rate: 1.01% ($50 transfer fee to another financial institution, $5 transaction fee to move funds to HISA)

*Hubert Financial - "Tickled Pink TFSA" -- Rate: 1.00% (No transfer fee)
Last edited by Shawguy on Jan 10th, 2021 1:22 pm, edited 53 times in total.
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Thread Summary
No Short Term Offers at this time
3885 replies
Moderator
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Mar 23, 2004
42595 posts
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Markham
sklm wrote: From checking their website I believe you could put 2.75% for ???.
right indeed...same goes for the gic/term deposit as well, thanks will go change now!

btw, seeing that a # of banks is giving out 3.75% promo, pcf will probably stay at 3.75% as well, at least until those promos are over.
CSR wrote: thx!
welcome, its still WIP, I hope this gets good enough to be a sticky! :D ..thou my goal is so that rfd users can use this thread for refernece/discussions.
Deal Addict
Nov 18, 2008
3271 posts
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Good thread and nice to see info all at once. In my semi-inebriated state I'd like to add that you can basically hold any GIC your heart desires at least with CIBC. If you want a guaranteed rate of return get the 3-year escalating GIC that has a annual yield of 4% and if you have IS you will get a 0.5% bonus, try negotiating with the personal banker if you can.
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Mar 23, 2004
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Markham
tng11 wrote: Good thread and nice to see info all at once. In my semi-inebriated state I'd like to add that you can basically hold any GIC your heart desires at least with CIBC. If you want a guaranteed rate of return get the 3-year escalating GIC that has a annual yield of 4% and if you have IS you will get a 0.5% bonus, try negotiating with the personal banker if you can.
thanks man, from the looks so far...there are not really any good GICs yet. PCF is the winner for me right now. But i will still wait a couple of more days.

I actually got the CIBC TFSA rate from one of your posts, so thanks to u as well :D
Deal Addict
Mar 28, 2008
1213 posts
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Toronto
I want to know if we can purchase stocks/funds within TFSA?

Or we can only purchase GIC/Deposit within TFSA?
Deal Addict
Mar 28, 2008
1213 posts
31 upvotes
Toronto
Q: What kind of investments can I hold in my TFSA?

A: You can hold many of the same investments you hold in your RSP in your TFSA, including mutual funds, GICs, stocks and bonds.

In this case, don't you want an investment account, instead of just PCF (which only allows you to purchase GIC/deposits??
Dec 31, 1969
angel_wing0 wrote: Please also give me suggestions on any info that I should put here, thanks.
Withdrawal and transfer fees?

BTW, great idea for attempting one thread on this topic.
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Mar 23, 2004
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dealtacular wrote: Withdrawal and transfer fees?

BTW, great idea for attempting one thread on this topic.
true, thanks for the suggestion. Going to get to it once i have time.

Thanks.

ING GIC rates just came out...as expected they are not pretty. Good thing i didnt invest there. The best GIC rate is Achieva for now...3.45% for 1 year..to 4.50% for 5 years.
Member
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Jan 29, 2007
374 posts
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Thanks for this thread and keeping it up-to-date.

I'm not really going to go through too much trouble chasing fractions of percentage points for a maximum $5k investment this year, but I am of thinking of locking in on a GIC since they are still predicting the Bank of Canada will continue to lower rates. Might even take the ING 4% for 5 years GIC given it's so simple.

I wonder how long PCF's TFSA savings account rate will last... I have a feeling it's only high now to attract people initially. I'm kind of getting tired of moving my money chasing higher rate savings accounts only for them to lower them soon after I have done so (like I did with PCF). :lol: Will/do they offer GICs for TFSAs?... bah, their existing GIC rates aren't good, probably will be the same for a TFSA.
Deal Addict
Nov 18, 2008
3271 posts
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I agree with all the posts saying it's questionable whether PCF's TFSA will be at 3.75%, I think it's a tactic to get all people to bring their money to PCF and then drop the rate on them. Even if they do lower it, it will be pretty much in line with ING or the other banks anyways, so don't create a huge fuss over fractions of a percentage for $5,000. If you determine their rate sucks by December 31, 2009 you can withdraw everything and move it over to another bank on January 1st, 2010 with another $5,000 on top.

The only problem I can foresee with PCF is the lack of options you'll have within the account with the $5,000 unless you're solely looking to do GIC or Savings, and there's no investment account option. But it looks the best out of all the TFSAs there and if you're sure you want a Savings account/GIC I think it's a no brainer to put your money there.

I'm putting mine at CIBC even with the lower 3% because you are allowed to move the money into a GIC or investment account at any time without having to pay the transfer fees to another institution, but for CIBC the TFSA option for Investor's Edge and Imperial Investor Service won't be available until mid-year according to my advisor. I need that extra flexibility and not too sure if I will be doing Savings, GIC or stocks in the account.
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Mar 23, 2004
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tng11 wrote: I agree with all the posts saying it's questionable whether PCF's TFSA will be at 3.75%, I think it's a tactic to get all people to bring their money to PCF and then drop the rate on them.
As i have said in my post, ctfs/hsbc, baring more interest rate drops, are offering 3.75% until march. So it's not strange that pcf is offering that exact rate for now...althou i m pretty sure they will drop it once those promos are done.
Member
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Apr 18, 2008
352 posts
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Niagara Falls
Do you guys know if, say, we have $5000 in PCF and they drop the rate, can we transfer (without physically taking the money out of the TFSA) into another TFSA account, say an online discount brokerage before the end of 2009?
Deal Addict
Nov 18, 2008
3271 posts
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myster wrote: Do you guys know if, say, we have $5000 in PCF and they drop the rate, can we transfer (without physically taking the money out of the TFSA) into another TFSA account, say an online discount brokerage before the end of 2009?
There will be a transfer fee, that's why I said it would probably be better to sacrifice a little bit of interest to get that flexibility. I saw somewhere the PC transfer fee will be $25 while for CIBC it will be $100.
Deal Fanatic
Jul 1, 2007
8459 posts
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As much as I hate Edward Jones, I like their ads that cross out the word "savings" and replace it with "investment" for "Tax Free Investment Account".

Getting 3% tax free is a waste of a TFSA unless it's the only savings you have and you have a short-term horizon. What I mean is that if you have short term and long term non-registered investments, the long-term, higher earning investments are better suited for the TFSA.
Member
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Apr 18, 2008
352 posts
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Niagara Falls
tng11 wrote: There will be a transfer fee, that's why I said it would probably be better to sacrifice a little bit of interest to get that flexibility. I saw somewhere the PC transfer fee will be $25 while for CIBC it will be $100.
link?

I can't find anything at PCF about transfer fees.
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Apr 18, 2008
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Niagara Falls
myster wrote: link?

I can't find anything at PCF about transfer fees.
I just called PCF and they said it's actually $50 to transfer into another institution.
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Apr 6, 2007
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Mississauga
Thalo wrote: the long-term, higher earning investments are better suited for the TFSA.
Like what for example?
Member
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Apr 6, 2007
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Mississauga
myster wrote: I just called PCF and they said it's actually $50 to transfer into another institution.
Seems like a better procedure - free, at least - for such "transfer" from institution A to B would be to withdraw everything from A on Dec 31 and invest into B on Jan 1.

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