The Best TFSA Savings Accounts in Canada

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by Ratehub.ca February 5, 2019 / No Comments

Using a TFSA is a great way to avoid paying taxes. However, it can be a bit confusing for many Canadians, primarily due to the name. While you can put many different types of investments—like stocks and mutual funds—in a TFSA, it can also be used as a place to stash your cash. Your TFSA might be in need of a rebrand to be a bit easier to understand, but it still can be an amazing tool for you.

Even though tax-free savings accounts are already good, they keep getting better. The amount that you can hold in your TFSA continues to grow! In the beginning of 2018, you gained an additional $5,500 in TFSA contribution room, and you will receive another increase in your contribution room at the beginning of 2019.

If you’re looking for a TFSA savings account that’s similar to a high-interest savings account, we found a few that offer a good rate and provide great features (like free transfers). Here are the best TFSA savings accounts in Canada:

Alterna Bank TFSA eSavings Account

The Alterna Bank TFSA eSavings Account is similar to the Alterna Bank High Interest eSavings Account. It has an interest rate of 2.35% and offers both unlimited free withdrawals and debits. There’s also no minimum balance and no monthly fee.

Alterna is a subsidiary of Ottawa-based credit union Alterna Savings. You can live anywhere in Canada if you want to open an account.

Motive Financial Motive® TFSA Savings Account

The rate on the Motive Financial Motive® TFSA Savings Account has become quite competitive. It currently offers a great rate of 2.4%. There are also unlimited free withdrawals and transfers.

Tangerine Tax-Free Savings Account

The Tangerine Tax-Free Savings Account doesn’t have the best rate on the market (it’s 1.25% for current clients; new clients get 3% for the first 182 days and 1.25% thereafter) but it does come with an unlimited number of free transfers, which many of its competitors don’t offer. The account has no fees and there’s no minimum balance required.

Tangerine (formerly ING Direct) is one of the country’s first digital banks and owned by Scotiabank.

CIBC Tax Advantage Savings Account

The CIBC Tax Advantage Savings Account currently offers a promotional rate of 3.00% on new deposits. However, it is important to note that this is a limited offer and once the promotion ends the rate will drop to its regular rate of 1.15%.

BMO TFSA Savings Account

The Bank of Montreal currently offers a promotional rate of 3.25% for its TFSA. Keep in mind, though, that the rate drops to 0.75% after March 15, 2019. Still, it’s a great account to park your money in the short-term to earn quite a bit of interest.

Implicity Financial TFSA

Implicity’s TFSA currently offers an interest rate of 2.4%. It also offers unlimited deposits and one withdrawal per month.

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