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Published July 10, 2024
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Best Tax-Free Savings Account Rates in Canada for 2024

The best high-interest tax-free savings accounts (TFSAs) have minimal fees and earn high rates of interest

Many or all of the products featured here are from our partners who compensate us. This may influence which products we write about and where and how the product appears on a page. However, this does not influence our evaluations. Our opinions are our own.

ALSO CONSIDER: Best high-interest savings accounts | Best high-interest registered retirement savings plans (RRSPs) | Best savings accounts | Best online savings accounts

Tax-free savings accounts (TFSAs) are a type of registered plan that earns tax-free interest. High-interest TFSAs act like regular savings accounts but with tax-sheltered benefits.

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Tangerine Tax-Free Savings Account

Tangerine Tax-Free Savings Account
  • Interest Rate
    6.00%*
    Promotional rate
  • Bonus Offer
    N/A
  • Monthly Fee
    $0
Our Take
  • This flexible, no-fee TFSA comes with a generous promotional offer that will earn you cash and a high rate of return for five months.
  • Tangerine is a subsidiary of Scotiabank and offers chequing and savings accounts, GICS, registered accounts, credit cards, mortgages, loans and investment products. Read our review of Tangerine for more information.
Product Details
  • 0.60% regular interest rate.
  • No monthly fee.
  • Automated savings program available.
  • Manage your money by phone, through online banking and a mobile app.
  • Other Tangerine TFSA investment options include Tax-Free GICs, available in 90-day to 5-year terms, and investment accounts and portfolios.
  • Service fees are listed online.
  • Deposits and withdrawals are free.
  • $50 fee to transfer your TFSA to another bank (transferring in another TFSA is free).
  • No minimum balance is required.
  • Eligible for CDIC deposit insurance.

Motive Financial TFSA Savings Account

Motive Financial TFSA Savings Account
  • Interest Rate
    4.10%
    No minimum balance required
  • Bonus Offer
    N/A
  • Monthly Fee
    $0
Our Take
  • Earn interest at a competitive rate on this no-fee and no-minimum balance high-interest TFSA.
  • Motive Financial is an online division of Canadian Western Bank and offers chequing and savings accounts, registered plans and GICs.
Product Details
  • 4.10% variable interest rate. Interest is calculated on the daily closing balance at the applicable rate tier and paid on the last day of the month, for the period beginning on the last day of the previous month and ending on the second last day of the month.
  • No monthly fee.
  • Withdrawals can be deposited into a Motive Savings or Motive Chequing account, a no-fee chequing account that earns 0.15% interest.
  • Manage your money by phone, through online banking and a mobile app.
  • Other TFSA investment options include the Motive® TFSA GIC, available in one to 10-year terms.
  • Service fees are listed online.
  • Free TFSA withdrawals and deposits.
  • $50 fee to transfer your TFSA to another bank (transferring in another TFSA is free).
  • $50 fee to close the account within one year of opening.
  • No minimum balance is required.
  • Eligible for CDIC deposit insurance.
  • Motive Financial products are not available to Québec residents.

Canadian Tire Tax Free® High Interest Savings Account

Canadian Tire Tax Free® High Interest Savings Account
  • Interest Rate
    3.70%
    No minimum balance required
  • Bonus Offer
    N/A
  • Monthly Fee
    $0
Our Take
  • This online-only high-interest TFSA features all the benefits of Canadian Tire’s ‘Money Magnet’ HISA, with tax-free advantages.
  • Canadian Tire Bank (CTB) is a federally chartered virtual bank that operates the Triangle Rewards Program and offers credit cards, savings accounts, and GICs.
Product Details
  • 3.70% variable interest rate. Interest is calculated daily, based on the closing balance of the account, and paid monthly.
  • No monthly fee.
  • Automatic savings plan available.
  • Manage your money by phone or through online banking.
  • Other Canadian Tire TFSA investment options include Tax-Free GICs, available in one to five-year terms.
  • Service fees are listed online.
  • Deposits and withdrawals are free.
  • $50 fee to transfer your TFSA to another bank (transferring in another TFSA is free).
  • No minimum balance.
  • Eligible for CDIC deposit insurance.
  • This account is not available to Québec residents.

Steinbach Credit Union TFSA Variable Savings

Steinbach Credit Union TFSA Variable Savings
  • Interest Rate
    3.65%
  • Bonus Offer
    N/A
  • Monthly Fee
    $0
Our Take
  • SCU’s TFSA Variable Savings offers a flexible way to save and earn tax-free interest for your short- or long-term goals.
  • Steinbach Credit Union, or SCU is one of Manitoba’s largest credit unions offering personal and business solutions online, by phone and in person.
Product Details
  • Offers a competitive, variable interest rate.
  • No introductory rate to expire after a few months — Steinbach Credit Union offers high-interest rates right from dollar one.
  • Interest is calculated on your minimum monthly balance and paid annually on December 31st.
  • Automate your contributions to your TFSA monthly so you can save without even thinking about it. Make sure you’re within your annual contribution limits.
  • Deposits can be added to your savings at any time without paying a fee.
  • All deposits are guaranteed 100% by the Deposit Guarantee Corporation of Manitoba.

Achieva Financial TFSA Savings Account

Achieva Financial TFSA Savings Account
  • Interest Rate
    3.50%
    No minimum balance required
  • Bonus Offer
    N/A
  • Monthly Fee
    $0
Our Take
  • This high-interest no-fee TFSA will help you save up for a TFSA GIC or a Qtrade Direct Investing online investment account, both offered through the virtual bank.
  • Achieva Financial is an online division of Manitoba’s Cambrian Credit Union and offers savings accounts, GICS, TFSAs, Registered Retirement Savings Plans (RRSPs), and Registered Retirement Income Funds (RRIFs).
Product Details
  • 3.50% variable interest rate. Interest is calculated on the daily closing balance and added to the principal on the last day of each month.
  • No monthly fee.
  • To open this account, you must agree to become a member of Cambrian Credit Union Limited, which requires a $5 share. Your is considered an investment and is fully refundable should you decide to cancel your membership.
  • Earn $1 per month when you choose electronic documents.
  • Manage your money by phone, through online banking and a mobile app.
  • Other Achieva TFSA investment options include TFSA GICS, available in one to five-year terms, and Qtrade Direct Investing online investment accounts.
  • Service fees are listed online.
  • Free deposits and one free cheque, direct transfer or pre-authorized payment every month.
  • $15 fee to close the account within six months of opening.
  • No minimum balance is required.
  • Eligible for Deposit Guarantee Corporation of Manitoba deposit insurance.

WealthONE Tax-Free Savings Account

WealthONE Tax-Free Savings Account
  • Interest Rate
    3.50%
    $1,000 opening deposit required
  • Bonus Offer
    N/A
  • Monthly Fee
    $0
Our Take
  • Use this no-fee TFSA to earn tax-free interest in an easy, flexible way.
  • WealthONE Bank of Canada is a Canadian Schedule 1 bank that serves all Canadians including the newcomers. It has two offices in Toronto and Vancouver and offers online banking, a mobile app and competitive interest rates.
Product Details
  • No monthly fee.
  • Automated savings program available. Manage your money by phone, through online banking and a mobile app.
  • Other Wealth One TFSA investment options include guaranteed investment certificates, available in 6-month to 5-year terms, and investment accounts and portfolios through Smart Money Invest.
  • Service fees are listed online.
  • Deposits and withdrawals are free.
  • $50 fee to transfer your TFSA to another bank (transferring in another TFSA is free).
  • $100 fee to close your TFSA account.
  • No minimum balance is required.
  • Eligible for CDIC deposit insurance.

MAXA Financial TFSA Savings

MAXA Financial TFSA Savings
  • Interest Rate
    3.45%
  • Bonus Offer
    N/A
  • Monthly Fee
    $0
Our Take
  • This TFSA Savings account offers competitive rates, the convenience of no minimum balance and added savings through zero monthly fee.
  • MAXA Financial is an operating division of Westoba Credit Union Ltd. and offers a high-interest savings account, GICs, and TFSA, RRSP and RRIF products.
Product Details
  • Get one free withdrawal monthly. After that, there will be a $3 fee per withdrawal.
  • Deposits are guaranteed 100% by Deposit Guarantee Corporation of Manitoba.
  • No minimum balance is required.
  • No monthly maintenance fee.
  • Interest is calculated on the daily closing balance and paid monthly.
  • MAXA MemberCard for ATM and Point-of-Sale transactions.
  • Account information is available online or by phone.
  • Contributions can be easily transferred from your MAXA High-Interest Savings account online or by phone.
  • You can set up recurring transfers from your MAXA High-Interest Savings account online or by phone.

Outlook Financial TFSA High-Interest Savings Account

Outlook Financial TFSA High-Interest Savings Account
  • Interest Rate
    3.45%
    No minimum balance required
  • Bonus Offer
    N/A
  • Monthly Fee
    $0
Our Take
  • This flexible high interest TFSA offers easy transfers between accounts via Outlook Financial mobile app or online banking.
  • Outlook Financial is an online division of Assiniboine Credit Union and offers savings accounts, GICS, TFSAs, Registered Retirement Savings Plans (RRSPs), and Registered Retirement Income Funds (RRIFs).
Product Details
  • 3.45% variable interest rate. Interest is calculated daily and paid back monthly.
  • No monthly fee.
  • To open this account, you must agree to become a member of Assiniboine Credit Union membership, which requires a $5 share. Your share is considered an investment and is fully refundable should you decide to cancel your membership.
  • Manage your money by phone or through online banking.
  • Other TFSA investment options include guaranteed investment certificates, available in one to five-year terms. RRSPs and RRIFs are also available.
  • Service fees are listed online.
  • One free cheque, pre-authorized debit, or transfer per month. Deposits are free and unlimited.
  • $50 fee to transfer your TFSA to another bank, transfers in are free.
  • $10 fee to close the account.
  • No minimum balance is required.
  • Eligible for Deposit Guarantee Corporation of Manitoba deposit insurance.
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Qtrade Direct Investing DIY TFSA

Get $50 upon opening and funding a new account, up to $150 for 3 accounts. Invest in high interest savings account ETFs, mutual funds, GICs, bonds, stocks and more, all in one place. Stay flexible while maximizing your returns.

Top high-interest TFSA rates in Canada:

Savings AccountInterest RateMonthly FeeInsurance
Achieva Financial TFSA Daily Interest Savings Account3.50%$0Deposit Guarantee Corporation of Manitoba
Alterna Bank TFSA HISA2.25%$0CDIC
ATB Financial Tax-Free Saver Account (Alberta residents only)0.50%$0Guaranteed under the ATB Financial Act
Canadian Tire Tax Free High Interest Savings® Account**3.70%$0CDIC
Canadian Western Bank WestEarner® TFSA Account1.00%$0CDIC
CIBC TFSA Tax Advantage Savings Account®0.70%$0CDIC
EQ Bank TFSA Savings Account**3.00%$0CDIC
​FirstOntario Credit Union TFSA Investment Savings (Ontario only)1.70%$0Financial Services Regulatory Authority of Ontario
Hubert Financial Happy TFSA HISA**3.40%$0Deposit Guarantee Corporation of Manitoba
ICICI Bank TFSA Savings Account1.25%$0CDIC
Manulife Bank Tax-Free Advantage Account5.00%$0CDIC
MAXA Financial TFSA High Interest Savings Account3.45%$0Deposit Guarantee Corporation of Manitoba
Meridian Credit Union TFSA HISA2.05%$0Financial Services Regulatory Authority of Ontario
Motive TFSA Savings Account**4.10%$0CDIC
Motusbank TFSA High interest savings account2.05%$0CDIC
National Bank of Canada Cash Advantage Solution TFSA1.10% - 4.30%$0CDIC
Outlook Financial TFSA High-Interest Savings Account3.45%$0Deposit Guarantee Corporation of Manitoba
Peoples Trust Tax-Free Savings3.40%$0CDIC
Steinbach Credit Union TFSA Variable Savings3.65%$0Deposit Guarantee Corporation of Manitoba
Tangerine Tax-Free Savings Accountup to 6.00%*$0CDIC
WealthONE Tax-Free Savings Account3.50%$0CDIC

**Not available to Quebec residents. 

Methodology

NerdWallet Canada selects the best high-interest tax-free savings accounts based on several criteria. Factors in our evaluation methodology include annual percentage yields, minimum balances, fees, digital experience, access to other TFSA investment products, and more. Only TFSAs from financial institutions available in more than one province are considered for this list.

    Things to know about Tax-Free Savings Accounts

    By Barry Choi

    What is a Tax-Free Savings Account?

    The tax-free savings account, or TFSA, was introduced to Canadians in 2009. With this type of account, you are not required to pay taxes on the interest it earns. This is obviously appealing since it’s a way to grow your money even faster than a traditional savings account or non-TFSA high-interest savings account.

    » Make sure you understand the basics: How interest rates work in Canada

    How to open a TFSA

    Banks, insurance companies, investment firms, credit unions, trust companies, discount brokerages and robo-advisors all provide access to TFSAs. Opening one is similar to opening any bank account, as long as you are eligible.

    » MORE: Read our full review of Scotiabank TFSA

    TFSA eligibility

    To be eligible for a TFSA, you need to meet all the following criteria:

    • Be a resident of Canada (or qualifying non-resident).
    • Have a valid Social Insurance Number (SIN).
    • Be at least 18 years or older.

    Both residents and non-residents of Canada can open a TFSA so long as they meet the other eligibility requirements. However, non-residents may be subject to a 1% tax on some contributions.

    In most provinces and territories, you must wait until the date of your 18th birthday to open a TFSA. However, once you turn 18, you get the total contribution limit amount for that year. For example, let’s say you turned 18 on July 7, 2023. You’d be able to open a TFSA on that day and contribute up to $6,500 since that’s the TFSA contribution limit for 2023.

    However, in some provinces, you can’t open a TFSA until you are 19, even though you start accumulating contribution room at age 18. If you reside in British Columbia, New Brunswick, Newfoundland and Labrador, Nova Scotia, Northwest Territories, Nunavut, or Yukon, the age of eligibility for a TFSA is 19. In this case, you’d get the contribution room for the year you turn 19 and the previous year.

    So, let’s say you live in Vancouver and turn 19 on September 9, 2023. On your birthday, you’d have access to a total of $12,500 in TFSA contribution room since the limit for 2022 and 2023 was $6,000 and $6,500, respectively.

    TFSA contribution room and withdrawals

    Before opening your TFSA, it’s important to be familiar with the rules.

    TFSA contribution room

    There’s an annual dollar limit on how much you can contribute to a TFSA each year. Here are the TFSA contribution limits since 2009:

    • 2009 – $5,000
    • 2010 – $5,000
    • 2011 – $5,000
    • 2012 – $5,000
    • 2013 – $5,500
    • 2014 – $5,500
    • 2015 – $10,000
    • 2016 – $5,500
    • 2017 – $5,500
    • 2018 – $5,500
    • 2019 – $6,000
    • 2020 – $6,000
    • 2021 – $6,000
    • 2022 – $6,000
    • 2023 – $6,500
    • 2024 – $7,000

    Your “contribution room” is the total combined annual contribution limits of all the years you’ve been eligible for a TFSA. Even if you haven’t been investing in a TFSA, you’ve been accumulating contribution room since 2009 for every year that you’ve been at least 18 years old, have had a SIN and have been a Canadian resident.

    If you turned 18 in 2013, for example, your lifetime TFSA contribution limit as of 2024 would be $75,500.

    Since your investments can grow within your TFSA, having a book value that exceeds the contribution limit is possible. Additionally, since you can recontribute any withdrawals the following year, it’s possible to have a TFSA limit that exceeds what you have been allotted.

    For example, let’s say you’ve maxed out your TFSA and you’ve made a capital gain of $20,000. You decide to withdraw that money. Come the new year, you can recontribute that $20,000, plus the additional contribution limit. By doing this, you’ve essentially created an additional $20,000 in contribution room.

    Where can I find my TFSA contribution room?

    You can find out where your TFSA contribution room stands by logging into your “My Account for Individuals” on the CRA website. Alternatively, you can contact the CRA directly and ask an authorized representative about your contribution room.

    While this is a quick way to check your TFSA contribution room, it’s not always accurate. Financial institutions typically only report your contributions once a year. That means if you’ve made any additional contributions or withdrawals, the CRA likely won’t have the most up-to-date information.

    The best thing to do is to keep your own records of your TFSA transactions. By doing this, it’s unlikely that you’ll ever go over your limit.

    TFSA withdrawals

    Most types of TFSA accounts allow you to withdraw money at any time. That said, some products within your TFSA, such as registered guaranteed investment certificates (GICs), may be locked in, so you may need to wait a certain length of time before you can withdraw them.

    Withdrawing funds from a TFSA doesn’t affect your total contribution limit. However, if you plan on replacing the amount you’ve withdrawn, you need to be mindful of your contribution limits.

    Any withdrawals you make in a calendar year can be replaced the following year. However, you can’t withdraw and replace funds in the same year unless you have the contribution room available.

    » MORE: How to hold a GIC in a TFSA

    How to use a TFSA

    There are many different ways to use a TFSA. When deciding the best TFSA for your needs, first consider how you’ll use the account. Some people will use their TFSA for short-term savings, such as a home down payment, while others will use it for long-term goals, including investing for retirement.

    » DISCOVER: 8 easy ways to start saving money

    Types of TFSAs

    The type of TFSA you set up depends on your goals. But here’s a brief overview of types of TFSAs and what you can do with them.

    • High-interest TFSA. This type of TFSA acts like a regular high-interest savings account but with tax-exemption benefits. Since you can access your funds quickly, it’s ideal for short-term savings or an emergency fund.
    • TFSA term deposits. You can lock away money for a specified period of time using a tax-free guaranteed investment certificate (GIC) or term deposit. These can be either redeemable, meaning you can cash out early, or non-redeemable. Non-redeemable GICs can offer higher rates of interest than redeemable GICs and high-interest TFSAs, but you won’t have immediate access to your money with this option.
    • TFSA investment account. This type of TFSA account allows you to invest TFSA funds. It may be managed by your financial institution or investment firm, including robo-advisors, or it can be self-directed, meaning you manage it on your own.

    » See our picks: The best high-interest savings accounts in Canada

    Investing your TFSA

    A TFSA is pretty straightforward. You contribute any amount up to the current limit and your contributions grow tax-free. What often confuses people about TFSAs is the name. Even though it’s called a tax-free savings account, it can be used as an investment account.

    Investment products can be purchased within the account, including:

    Because of all the different ways you can use a TFSA, you may choose to open more than one. Just remember that your total amount of available contribution room does not change, and you can’t exceed that limit regardless of how many accounts you have. So, you’ll have to monitor the balances of all your accounts.

    Times you may pay taxes on your TFSA

    In most cases, any gains made within your TFSA are tax-exempt, but there are some scenarios where taxes may apply.

    • If you exceed your available contribution room, you’ll have to pay a tax of 1% on the excess contribution every month until you get your account back below your limit.
    • If you become a non-resident. Now let’s say you have a TFSA and decide to move overseas and become a non-resident for tax purposes. You would no longer gain any new contribution room, so you’d be taxed 1% on any extra deposits if you exceed your total limit.
    • If you use your TFSA for business purposes. Your TFSA is meant for personal use only and can’t be used for business purposes. For example, let’s say you decide to day trade in your TFSA. The CRA may consider this business use and tax all of your capital gains at your marginal tax rate. It doesn’t matter if you’re not a professional day trader. If the CRA considers it business use, they’ll tax you accordingly.

    » MORE: How does income tax work?

    FAQs

    What’s the difference between a TFSA and RRSP?

    When you contribute to your Registered Retirement Savings Plan, or RRSP, your taxable income is reduced by the same amount for the year. However, when you eventually withdraw that money, it will be taxed at your marginal tax rate.

    With TFSAs, you don’t get a tax break on contributions, but all gains made are entirely tax free.

    With RRSPs, you gain contribution room based on your previous year’s income, while TFSA contribution room is a fixed amount that gets set by the government each year.

    What is a high-interest TFSA?

    A high-interest TFSA is a tax-free savings account that pays a higher rate of interest than traditional savings accounts or other types of TFSAs. How much interest you’ll get depends on the financial institution where you have your TFSA. Online-only banks tend to offer higher rates than traditional banks and credit unions, for example.

    The term “high-interest” is a bit relative since rates fluctuate over time, and Canada has had record low interest rates in recent years. Still, the interest rate offered is a fairly simple way to compare TFSAs when searching for the best account for your needs.

    DIVE EVEN DEEPER

    TFSA vs. RRSP: How to Choose

    TFSA vs. RRSP: How to Choose

    The tax-free withdrawals of a TFSA offer more flexibility, but the tax-deferred contributions of an RRSP are great for retirement. The type of account you choose will depend on your savings goals.

    TFSA Contribution Limit and Withdrawal Rules for 2024

    TFSA Contribution Limit and Withdrawal Rules for 2024

    TFSA contribution limit for 2024 is $7,000 — an annual ceiling for how much you can contribute to a tax-free savings account. However, over-contributing, can cost you a tax penalty.

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