Best Tax-Free Savings Account Rates in Canada for 2025
Tax-free savings accounts (TFSAs) are a type of registered plan that earns tax-free interest. High-interest TFSAs work like regular savings accounts but come with tax-sheltered benefits.
We evaluate TFSAs from over 40 financial institutions to provide an up-to-date list of accounts offering the best overall value to meet your financial needs.
- Summary of our picks for the best high-interest TFSAs
Tangerine Tax-Free Savings Account
WealthONE Tax-Free Savings Account
Saven Financial TFSA
Canadian Tire Tax Free® High Interest Savings Account
National Bank Cash Advantage Solution TFSA
Steinbach Credit Union TFSA Variable Savings
Motive Financial TFSA Savings Account
Achieva Financial TFSA Savings Account
The best TFSA rates in Canada
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Product detailsMore high-interest TFSA rates in Canada
Savings Account | Interest Rate | Monthly Fee | Insurance |
|---|---|---|---|
Achieva Financial TFSA Daily Interest Savings Account | 2.10% | $0 | Deposit Guarantee Corporation of Manitoba |
Alterna Bank TFSA HISA | 1.25% | $0 | CDIC |
ATB Financial Tax-Free Saver Account (Alberta residents only) | 0.50% | $0 | Guaranteed under the ATB Financial Act |
Canadian Tire Tax Free High Interest Savings® Account** | 2.75% | $0 | CDIC |
EQ Bank TFSA Savings Account** | 1.75% | $0 | CDIC |
FirstOntario Credit Union TFSA Investment Savings (Ontario only) | 0.80% | $0 | Financial Services Regulatory Authority of Ontario |
Hubert Financial Happy TFSA HISA** | 1.65% | $0 | Deposit Guarantee Corporation of Manitoba |
ICICI Bank TFSA Savings Account | 1.25% | $0 | CDIC |
Island Savings TFSA HISA (British Columbia only) | 4.52%* | $0 | CDIC |
Manulife Bank Tax-Free Advantage Account | 1.05% | $0 | CDIC |
MAXA Financial TFSA High Interest Savings Account | 1.85% | $0 | Deposit Guarantee Corporation of Manitoba |
Meridian Credit Union TFSA HISA | 0.85% | $0 | Financial Services Regulatory Authority of Ontario |
Motive TFSA Savings Account** | 2.25% | $0 | CDIC |
National Bank of Canada Cash Advantage Solution TFSA | 0.35% - 2.75% | $0 | CDIC |
Outlook Financial TFSA High-Interest Savings Account | 1.85% | $0 | Deposit Guarantee Corporation of Manitoba |
Peoples Trust Tax-Free Savings | 1.75% | $0 | CDIC |
Saven Financial TFSA HISA | 2.90% | $0 | Financial Services Regulatory Authority of Ontario |
Steinbach Credit Union TFSA Variable Savings | 2.25% | $0 | Deposit Guarantee Corporation of Manitoba |
Tangerine Tax-Free Savings Account | up to 4.50%* | $0 | CDIC |
WealthONE Tax-Free Savings Account | 3.10% | $0 | CDIC |
Wealthsimple TFSA | 1.75% - 2.75% | $0 | CDIC |
(Not available to Quebec residents.)
*Promotional rates offered by the bank. Conditions apply.
Methodology
BACK TO TOPNerdWallet 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.
Guide to choosing a tax-free savings account
A good tax-free savings account, or TFSA, provides easy access to your funds along with diverse investment options when needed.
Benefits to look for in a high-interest TFSA
NerdWallet evaluates and selects TFSAs based on their overall value. We prefer accounts with:
Faster tax-free growth. The best TFSA pays a higher rate of interest than traditional savings accounts or standard TFSAs. Online banks usually provide better rates compared to traditional banks.
Scalable investment options. TFSAs from financial institutions with multiple product offerings may better suit your future financial goals.
Ease of banking. Generally, you should be able to withdraw funds at any time without restrictions. Always review account terms and check reviews of the provider’s online and mobile banking services.
Downsides to be aware of in a high-interest TFSA
While TFSA are generally reliable savings solutions, watch out for accounts that have:
High initial deposit. Be aware of TFSAs that require a minimum balance for higher interest rates or free transactions.
Fewer investment options. Online banks tend to have fewer investment products compared to major banks, potentially restricting your TFSA investment plans in the near future.
Transaction Limits. Avoid banks that limit monthly withdrawals or charge higher fees for exceeding transaction limits.
How to find the best TFSA for you
When selecting a TFSA, consider the following factors:
✅ Your financial approach: Will you use your TFSA for short-term goals like a home down payment or emergency fund? Or are you looking for medium- to long-term growth through tools like TFSA GICs or mutual funds? Decide if you prefer a managed investment account or a self-directed solution.
- Explore eligible TFSA investment options
A TFSA can hold several types of qualified investment products, including:
✅ Your banking preferences: Would you prefer your current financial institution or are you open to exploring other options? Consider each institution’s investment options, interest rates, fees and digital banking capabilities.
» MORE: Read our full review of Scotiabank TFSA
How to open an 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.
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 (age eligibility may vary by province).
Before opening your TFSA, familiarize yourself with the contribution limits and withdrawal rules.
Alternatives to consider
If a TFSA does not meet your financial objectives, consider these alternatives:
Registered retirement savings plans (RRSPs): Suitable for retirement savings and reducing taxable income.
High-interest savings accounts (HISAs): Ideal non-registered shorter-term savings tool that offers fewer restrictions and contribution limits.
Guaranteed investment certificates (GICs): Ideal for fixed-term investment and guaranteed rate of return with varying term options to match your investment goals.
Online bank accounts: Great option for digitally savvy users seeking to combine chequing and savings features for minimal fees and higher interest rates.
U.S. dollar HISAs: Ideal for frequent travelers and dual citizens, these accounts can save and earn interest in U.S. dollars and help avoid exchange fees.
Frequently asked questions
What’s the difference between a TFSA and RRSP?
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?
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.
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Siddhi Bagwe
Siddhi Bagwe