RBC TFSA Review: Is It Worth It?
RBC TFSA at a glance
Best pick for:
Unrestricted access to funds
RBC's tax-free savings account offers a consistent interest rate on all cash balances. You can access your funds freely, without worrying about a minimum balance.
Consolidated banking users
You may decide to consolidate your banking products for convenience, to receive fee rebates with the Value Program, or to establish a new relationship with RBC.
Tax-free investment gains
The RBC TFSA could be a convenient fit if you're an existing customer looking for a tax-advantaged account that allows for both saving and investing.
Not ideal for:
High-yield savers
The RBC TFSA offers a base savings rate comparable to other Big Banks. However, you might find higher rates with credit unions and online banks, especially if there are bonus rates involved.
Fee-conscious individuals
For low-cost investment management and trading fees paid to access your funds, explore online alternatives that offer no- or low-fees.
Non-RBC customers
For non-RBC clients, managing TFSA transfers, withdrawals, and contributions can be a hassle. RBC’s TFSA also falls short on interest rates and often lacks an introductory offer compared to other providers.
RBC TFSA full review
Royal Bank of Canada, or RBC, is one of the big six banks in Canada and offers several types of tax-free savings accounts to its customers. What makes a TFSA appealing is that any interest, dividends and capital gains earned in the account are completely tax-free. Plus, eligible Canadian residents gain a TFSA contribution room yearly, regardless of their income.
Types of TFSAs available from RBC
RBC offers different types of tax-free savings accounts depending on the kind of savings and investments you want to hold and how you want to manage your TFSA.
Standard TFSA. This RBC TFSA gives you access to advice from RBC financial advisors, while allowing you to hold products such as guaranteed investment certificates (GICs), mutual funds and savings.
RBC InvestEase. This TFSA option offers a low-cost portfolio of exchange-traded funds (ETFs), built and managed for you by RBC advisors.
RBC Direct Investing. This do-it-yourself route is a TFSA that allows you to make trades. Direct Investing is RBC’s discount brokerage, so you’ll make all the trades yourself, but you’ll have access to investor resources and research.
What is RBC?
The Royal Bank of Canada was founded in 1864 in Halifax, Nova Scotia, as the Merchants Bank of Halifax. Since then, the bank has grown to be one of the big six banks and now has over 97,000 employees and 17 million clients worldwide.
In addition to TFSAs, RBC offers products such as bank accounts, investment advice, mortgages, credit cards, and more. RBC’s head office is located in Toronto, Canada, but it also has global offices in the United States, Australia, China, France, Hong Kong, the United Kingdom, Spain, and more.
Is RBC safe?
RBC is a member of the Canada Deposit Insurance Corporation (CDIC). That means your eligible deposits are insured up to $100,000 per account. RBC GICs, term deposits and cash in your TFSA would qualify for protection under CDIC insurance.
RBC is also a Canadian Investor Protection Fund (CIPF) member. In the unlikely case that RBC fails, your investments, such as stocks, mutual funds, and ETFs held within your TFSA, would be covered up to $1,000,000.
In addition, RBC uses the highest possible standards when it comes to security. These include multi-layered secure servers, multiple layers of internal and external firewalls, Secure Socket Layer (SSL) 128-bit encryption and more.
The bank also uses a secure messaging centre, personal verification questions, and two-factor authentication to ensure only the account holder accesses sensitive information. The RBC Digital Banking Guarantee protects customers against fraudulent transactions.
RBC customer satisfaction ratings
RBC Royal Bank ranks first in customer satisfaction with retail banking advice, according to J.D. Power’s 2025 Canada Retail Banking Advice Satisfaction Study, a survey of 2,582 retail bank customers in Canada .
RBC Royal Bank ranks third in online banking and mobile app satisfaction according to J.D. Power’s 2025 Canada Online Banking Satisfaction Study, a survey of 9,857 retail bank and credit card customers nationwide .
At the time of this writing, RBC had a Trustpilot rating of 1.3 out of 5 possible stars after more than 1,600 customer reviews.
At the time of this writing, RBC had a Better Business Bureau (BBB) rating of 1.1 out of 5 possible stars after more than 80 customer reviews.
How RBC TFSA features stack up
We rate tax-free savings accounts based on several criteria in our evaluation methodology, including annual percentage yields, minimum balances, fees, digital experience, access to other TFSA investment products, and more. Here are the key banking features that our team scored on a scale of one to five, rounded for simplicity.
Interest rates | ⭐️
Promotional rate as of January 2025
RBC’s TFSA has no promotional interest rate as of Jan. 16, 2025.
Ongoing interest rate as of January 2025
RBC’s TFSA’s ongoing interest rate is 0.55% as of Jan. 16, 2025.
Features and Limitations | ⭐️⭐️⭐️⭐️⭐️
RBC’s standard TFSA and InvestEase allow you to make automatic monthly contributions. If you use RBC Direct Investing, you can set up your account so that any eligible dividends are automatically reinvested without fees.
Minimum balance
RBC TFSAs have no minimum savings amount, though you may need to invest a minimum amount when purchasing GICs or mutual funds.
The TFSA contribution limit for 2025 is $7,000. If you were eligible in 2009 when the TFSA was introduced, your lifetime contribution limit would be $180,000 as of 2025. Over-contributions will be taxed.
Banking experience | ⭐️⭐️⭐️⭐️⭐️
You can manage your RBC TFSA using online, ATM, phone or in-branch banking services.
RBC standard TFSA has no monthly or withdrawal fees.
However, RBC InvestEase comes with an annual management fee of 0.5%, which is calculated on your average Assets under management (AUM) and billed monthly.
RBC Direct Investing users are charged $25 each quarter, which is waived if you maintain a minimum balance of $15,000 across all of your investing accounts or if certain other conditions are met. Additionally, a trading fee of up to $9.95 will apply if you sell securities within RBC Direct Investing before making a withdrawal.
Note that a $150 transfer fee applies when you transfer your RBC TFSA to another institution.
RBC TFSA details and eligibility
Who qualifies for an RBC TFSA?
To open an RBC TFSA, you must:
Be a Canadian resident.
Be over the age of majority in your province or territory.
Have a valid Social Insurance Number (SIN).
How to know if an RBC TFSA is right for you
If you’re an RBC customer looking to hold or invest your savings, tax-free with an unused TFSA contribution room, an RBC TFSA might be right for you.
How to open an RBC TFSA
Method and general steps
Opening a TFSA with RBC is easy. Just follow these steps:
Go to the RBC website.
Hover over the “Investments” menu and click “Tax-Free Savings – TFSA.”
Scroll down to “Invest in a TFSA Today” and choose the type of TFSA you want (access to advice, build and managed for me, or TFSA I can trade in).
If you already have an RBC account, sign into your online banking profile and you’ll be able to open an account right away.
If you’re a new RBC customer, you’ll need to call an RBC advisor or visit a local branch to open a TFSA.
Deposit and withdrawal process
Once you’ve set up your RBC TFSA, you need to fund your account or purchase investment products. How you do this depends on your account. With a standard TFSA, you can have your advisor withdraw funds directly from your bank account to purchase products.
If you opened an RBC InvestEase or Direct Investing account, you’ll need to move money into it before you can invest it. You’ll do this through your RBC online banking. Choose the “Move Money” tab and then choose the bank account you’re moving funds from and the account you’re moving funds to. Once the money is in your InvestEase TFSA, you can invest in the recommended portfolio.
When it comes to withdrawals, you can only access funds from cashable investment products. One of the exceptions is the non-redeemable GICs that are only available at maturity. Once the funds are available in cash, you could move them back into your bank account.
If you withdraw money from a TFSA, you can re-contribute that amount in the following year.
Customer service options
If you need assistance opening a TFSA with RBC or have questions about your account, you can contact an advisor for help via several methods:
Phone. Call 1-800-463-3863 for live support. If you use RBC Direct Investing, the number is 1-800-769-2560. They’re open Monday to Friday from 7 a.m. to 8 p.m. ET.
In person. Call your local branch to set up an appointment during business hours.
Send a direct message. RBC Direct Investing clients can send a direct message to customer support from within their accounts.
How to maximize the benefits of the RBC TFSA
Opening an RBC TFSA is simple. However, if you want to maximize the benefits of your account, consider the following:
Invest your money. Some people falsely assume that a TFSA can only be used as a savings account. That’s untrue, as you can invest in products that have higher growth potential, such as mutual funds, stocks and ETFs. If you’re new to investing, ask an advisor for help.
Maximize your contributions. Although you don’t get a tax break when you contribute to your TFSA, all capital gains and interest earned in the account is tax-free. Maxing out your account by contributing up to the annual limit is ideal since you’ll pay taxes on your investment gains in other accounts.
Start early. Even if you can’t max out your TFSA immediately, opening an account as soon as possible is preferred, so your money has more time to grow.
Don’t over contribute. You can contribute up to theTFSA limit, which you can check in your account with the Canada Revenue Agency. If you exceed that amount, you’ll be charged 1% of the excess amount each month by the CRA until you withdraw the excess funds.
RBC TFSA alternatives
Most financial institutions offer similar TFSAs, so it doesn’t make a huge difference which bank you choose. That said, a TFSA may not be for everyone. Some people may prefer to focus on contributing to a registered retirement savings plan (RRSP), since these contributions help reduce their taxable income.
TFSA vs. high interest savings account
Each of these RBC savings accounts serves a purpose. Compare the features, interest rates and other factors to find the most ideal account to satisfy your immediate or future financial needs.
RBC TFSA | ||
|---|---|---|
Purpose | A registered account for tax-free earnings and withdrawals | High interest-earning account |
Standard interest rate | 0.55% | 1.00% |
Annual contribution limit | $7,000 for 2025 | N/A |
Monthly fee | None | None |
Over-contribution penalty tax | 1% per month on excess contributions | N/A |
Frequently asked questions
How to contribute to your RBC TFSA?
How to contribute to your RBC TFSA?
If you have an existing RBC chequing or savings account, you can add funds using the RBC online banking or mobile app, via phone banking (call 1-844-357-8242), or by visiting your nearest branch.
What are the RBC TFSA fees I should know about?
What are the RBC TFSA fees I should know about?
You don’t pay any monthly RBC TFSA fees.
There’s no fee for withdrawing funds from your account. But a trading fee of up to $9.95 will apply if you sell securities within RBC Direct Investing before making a withdrawal.
RBC Direct Investing users are charged $25 each quarter but this fee is waived when you meet certain conditions. There is a $150 transfer fee if you transfer your RBC TFSA to another institution.
Sources
NerdWallet writers are subject matter authorities who use primary, trustworthy sources to inform their work, including peer-reviewed studies, government websites, academic research and interviews with industry experts. All content is fact-checked for accuracy, timeliness and relevance. You can learn more about NerdWallet's high standards for journalism by reading our editorial guidelines.
- J.D. Power. J.D. Power’s 2025 Canada Retail Banking Advice Satisfaction Study. Accessed Oct 6, 2025.
- J.D. Power. J.D. Power’s 2025 Canada Online Banking Satisfaction Study. Accessed Oct 6, 2025.
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