Best Tax-Free Savings Account Rates in Canada for 2025
🏆 Our picks for the best high-interest TFSAs in Canada
Tangerine Tax-Free Savings Account
Saven Financial TFSA HISA
WealthONE Tax-Free Savings Account
Canadian Tire Tax Free High Interest Savings® Account
Hubert Financial Happy Savings TFSA
Steinbach Credit Union TFSA Variable Savings
National Bank of Canada Cash Advantage Solution TFSA
Wealthsimple Registered Savings Account (TFSA)
Why trust NerdWallet
NerdWallet follows strict editorial guidelines to remain objective in our evaluations and ensure accuracy for our readers. Evaluations are based on a proprietary formula that factors in the overall value and benefits of each tax-free savings account (TFSA).
Over 50 financial institutions, including traditional banks, credit unions and online banks reviewed by our banking specialists.
Nearly 30 currently available high-interest TFSAs are examined to determine their eligibility for our roundup.
The best TFSA rates in Canada
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Product detailsMore high-interest TFSA rates in Canada
These TFSAs also offer higher-than-average rates as of Dec. 23, 2025. Some of these accounts are limited to residents of a single province. (Scroll horizontally to see more details about each TFSA.)
Savings Account sorted ascending | Interest Rate | Monthly Fee | Insurance |
|---|---|---|---|
Achieva Financial TFSA Daily Interest Savings Account | 1.95% | $0 | Deposit Guarantee Corporation of Manitoba |
Alterna Bank TFSA eSavings Account | 1.15% | $0 | CDIC |
ATB Financial Tax-Free Saver Account (Alberta residents only) | up to 2.70%* | $0 | Guaranteed under the ATB Financial Act |
Canadian Tire Tax Free High Interest Savings® Account | 2.40% | $0 | CDIC |
EQ Bank TFSA Savings Account | 1.50% | $0 | CDIC |
FirstOntario Credit Union TFSA Investment Savings Account (Ontario only) | 0.60% | $0 | Financial Services Regulatory Authority of Ontario |
Hubert Financial Happy Savings TFSA | 2.30% | $0 | Deposit Guarantee Corporation of Manitoba |
ICICI Bank Tax-Free Savings Account | 1.25% | $0 | CDIC |
Island Savings TFSA High Interest Savings Account (British Columbia only) | up to 3.94%* | $0 | CDIC |
Manulife Bank Tax-Free Savings Account | 3.75%* | $0 | CDIC |
MAXA Financial TFSA High Interest Savings Account | 1.75% | $0 | Deposit Guarantee Corporation of Manitoba |
Meridian Credit Union TFSA High Interest Savings | 0.85% | $0 | Financial Services Regulatory Authority of Ontario |
National Bank of Canada Cash Advantage Solution TFSA | up to 2.25% | $0 | CDIC |
Outlook Financial TFSA High-Interest Savings Account | 1.75% | $0 | Deposit Guarantee Corporation of Manitoba |
Saven Financial TFSA HISA | 2.85% | $0 | Financial Services Regulatory Authority of Ontario |
Steinbach Credit Union TFSA Variable Savings | 2.10% | $0 | Deposit Guarantee Corporation of Manitoba |
Tangerine Tax-Free Savings Account | up to 4.50%* | $0 | CDIC |
WealthONE Tax-Free Savings Account | 2.60% | $0 | CDIC |
Wealthsimple Registered Savings Account (TFSA) | up to 2.25% | $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
Tax-free savings accounts (TFSAs) are registered accounts where the interest and investment income you earn, such as dividends and capital gains, is usually tax-free. You can save your cash in a high-interest TFSA for easy access, or hold eligible investments — such as GICs, mutual funds or ETFs — inside your TFSA.
Benefits to look for in a high-interest TFSA
NerdWallet evaluates and selects TFSAs based on their overall value. We prefer accounts with:
Higher interest rates. 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 accommodate changing financial goals in the future.
Ease of banking. Generally, you should be able to withdraw cash from your TFSA at any time without restrictions. Always review account terms and check reviews of the provider’s online and mobile banking services to make sure you understand any restrictions.
Downsides to be aware of in a high-interest TFSA
While TFSA are generally reliable savings solutions, watch out for accounts that have:
Minimum balances. 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.
Transaction limits. Avoid banks that limit your withdrawals or charge high fees for exceeding transaction limits. However, ideally you won’t need to make withdrawals from your TFSA very often; it’s not a good fit for day-to-day banking.
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 saving for 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 to open a TFSA at 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 the age of majority in your province or territory.
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 has no 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. You can also hold a GIC within your TFSA for tax-free growth.
Online bank accounts: Great option for digitally savvy users seeking to combine chequing and savings features for minimal fees and higher interest rates, although the interest you earn is taxable.
U.S. dollar HISAs: Ideal for frequent travellers and dual citizens, these accounts let you save and earn interest in U.S. dollars and help you avoid exchange fees.
Frequently asked questions
What’s the difference between a TFSA and an RRSP?
What’s the difference between a TFSA and an RRSP?
When you contribute to your registered retirement savings plan, or RRSP, your taxable income is reduced by the same amount. This can help you save money on your income taxes for the year. However, when you eventually withdraw that money, you will pay tax on it. With TFSAs, you don’t get a tax break on contributions, but all interest and investment gains 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 not part of the official name of the account and doesn’t have a true definition. It’s a bit relative since rates fluctuate over time, and Canada has had fairly low interest rates in recent years. Still, comparing TFSAs by the interest rates offered is a fairly simple way to consider which might be the best account for your needs.
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