Skip to main content
Ratehub logo
Ratehub logo

The best tax free saving accounts (TFSAs) in Canada

TFSAs are a great option to grow your savings. Find the best tax free savings account for you.

Compare Tax Free Saving Accounts (TFSAs)

Rates updated:

  • No Results
Viewing
with a balance of
  1. EQ Bank Tax Free Savings Account

    2023 Winner!

    Featured

    3.00%interest rate
    $150 first year return based on$5,000 balance
    Monthly fee
    $0.00
    Transaction fees
    $0.00
    E-transfer
    $0.00
  2. CIBC Tax Advantage Savings Account

    0.70%interest rate
    $35 first year return based on$5,000 balance
    Monthly fee
    $0.00
    Transaction fees
    $0.00
    E-transfer
    $0.00
  3. Scotiabank Savings Accelerator Account (TFSA)

    0.65%interest rate
    $33 first year return based on$5,000 balance
    Monthly fee
    $0.00
    Transaction fees
    $5.00
    E-transfer
    $0.00
  4. Bank of Montreal BMO TFSA Saving Account

    0.05%interest rate
    $3 first year return based on$5,000 balance
    Monthly fee
    $0.00
    Transaction fees
    $0.00
    E-transfer
    $0.00

Frequently Asked Questions

Who has the best TFSA rates in Canada?


What is the contribution limit for 2024?


When is the best time to make a TFSA withdrawal?


What are the pros and cons of a TFSA?


What are other popular types of savings accounts?


TFSAs vs. RRSPs: Which one is right for you?


What can I invest in a TFSA?


The best overall savings accounts in Canada

What is a Tax-Free Savings Account?

A Tax-Free Savings Account (TFSA) isn’t merely a savings account but a registered investment account that offers tax-shelter benefits from the Government of Canada. You can hold a wide range of investments and securities inside a TFSA, including cash, stocks, bonds, mutual funds, guaranteed investment certificates (GICs) and exchange traded funds (ETFs). The reason it’s called a Tax-Free Savings Account is because all the earnings generated by the investments in your TFSA aren’t taxed, that is, your savings are allowed to grow tax-free.

There are limits to how much you can contribute to a TFSA that increase every calendar year. As of 2024, the contribution room increased to $7,000.

 

How do TFSAs work?

1. How do TFSA contributions and withdrawals work?

There are government-mandated limits to how much money you contribute to your TFSA (aptly known as a TFSA contribution limit). This limit increase with the start of every new calendar year.

In 2024, the contribution limit increased by $7,000. The great thing about TFSAs is that any unused contribution room from previous years carries over.

If you've never contributed to a TFSA before and were at least 18 years old (and a Canadian resident) in 2009 - the year when TFSAs were first launched - your total lifetime contribution limit will be $88,000.

Your lifetime TFSA contribution room begins from when you turned 18, or for newcomers to the country, the year you became a Canadian resident. You can find how much TFSA contribution room you have available online on your CRA My Account profile.

It's also important to know how withdrawals can impact your TFSA contribution limits, as any amount of money you withdraw from your TFSA is temporarily deducted from your contribution room until the start of the next calendar year.

2. How can a TFSA be used?

Depending on your financial goals, there are different types of TFSAs that you can benefit from:

  • High-interest TFSA: This type of account acts very similar to a high interest savings accounts, but with the tax-exemption benefits.
  • TFSA term deposit: This type of account is lock-in for a defined period of time using a tax-free GIC or term deposit.
  • TFSA investment account: This type of account allow you to invest your TFSA funds which can be managed by your financial institution, robo-advisor or online brokerage. Your TFSA funds can be invested in mutual funds, publicly traded securities (stocks, exchange traded funds - ETFs, etc.), guaranteed investment certificates, or bonds.

Also read:

Natasha Macmillan, Business Director of Everyday Banking

With over a decade of experience in the finance industry, Natasha works closely with Canada's top financial institutions - from banks to credit unions - to help Ratehub.ca's 1,200,000 monthly users get matched with the right banking products. read full bio

Making dollars make sense

explore more articles

The knowledge bank

A wealth of knowledge delivered right to your inbox.

By submitting your email address, you acknowledge and agree to Ratehub.ca’s Terms of Use and Privacy Policy. Contact us for more information. You can unsubscribe at any time.

About Ratehub.ca

Whether you need a mortgage, credit card, savings account, or insurance coverage, we help you find and compare the best financial products for your specific needs.

When it comes to mortgages, Ratehub.ca is more than just a place to research and compare the best rates. Our goal is to give Canadians the best mortgage experience from online search to close. This means offering Canadians the mortgage tools, information and articles to educate themselves, allowing them to get personalized rate quotes from multiple lenders to compare rates instantly, and providing them with the best online application and offline customer service to close their mortgage all in one place.

Ratehub.ca has been named Canada's Mortgage Brokerage of the Year for four years straight (2018-2021). With over 12 years of mortgage experience, and over $11 billion in mortgages funded, we deliver you the best mortgage experience in Canada.

How does Ratehub.ca make money?

Financial institutions pay us for connecting them with customers. This could be through advertisements, or when someone applies or is approved for a product. However, not all products we list are tied to compensation for us. Our industry-leading education centres and calculators are available 24/7, free of charge, and with no obligation to purchase. To learn more, visit our About us page.

read more about us