Best TFSA Savings Accounts Comparison in Canada in 2019
Got spare cash? It should probably be collecting interest, not dust.
TFSAs (Tax-Free Savings Accounts) have been available in Canada for 10 years for that very purpose, and the contribution limit recently increased to $6,000 in 2019. Sound appealing? We commend you for your decision to get in the game and open a high interest TFSA this year, but there are a lot of options out there, and we strongly caution against simply signing up for the first TFSA that you stumble across, without looking at different offers.
Best TFSA Interest Rates in Canada
|Savings Account||Tax Free Savings Account Interest Rate||Monthly Fee||Key Feature|
|Tangerine TFSA||2.75% for 6 months for new clients, then 1.15%||$0||Unique goal setting feature|
|Hubert Financial||2.5%||$0||No minimum balance|
|Implicity Financial||2.40%||$0||Unlimited deposits, 1 free withdrawal per month|
|Motive Financial||2.40%||$0||No minimum balance, free transfers|
|Alterna Financial||2.35%||$0||Unlimited free me-to-me transfers|
|CIBC Tax Advantage Savings Account||1.15%||$0||Automatic transfers|
|Scotia Savings Accelerator TFSA||1.05% for <$250K|
1.15% for >$250K
|$0||Transfer funds to other Scotia accounts|
Tangerine is the darling of the online banking world, offering no-fee chequing accounts, an excellent credit card with 2% money back on eligible purchases, low-cost investing options, and a TFSA high-interest savings account with an attractive interest rate. When you open a TFSA through Tangerine your money will earn 2.75% for 6 months, and then 1.15% after that. There are no minimum account balances and no annual fees. You can set up automatic contributions to your TFSA from your Tangerine chequing account, and Tangerine’s unique goal tracking feature will allow you to monitor your progress.
Scotiabank Savings Accelerator
The Savings Accelerator TFSA from Scotiabank is a good no-fee option for Scotia customers with a large rainy-day fund. Those saving for retirement, who like banking with a reliable and veteran financial institution and who want to be able to transfer money free to their other Scotia accounts are ideal candidates. Scotia TFSAs can hold mutual funds, GICs, and encapsulate other types of savings accounts from Scotia, but we like the Savings Accelerator for its tiered interest—a competitive 1.050% on anything less than $250,000, and 1.150% on $250,000 or more.
Implicity Financial is an online financial institution and a division of Entegra Credit Union. When you open a TFSA through Implicity Financial, your money will earn 2.40%, which is one of the best TFSA rates on this list. There are no annual fees for this account, and you can make unlimited deposits into it. There is, however, a notable downside: You can only make one free withdrawal per month.
The Alterna Bank TFSA eSavings Account requires no minimum balance and has no monthly fee. Deposits to the account earn a strong 2.35% interest rate; transfers are made easily by linking your bank account at an outside financial institution. These are called “me-to-me” transfers, and accountholders can perform as many as they like without paying any fees. Accounts can be opened from anywhere in Canada, as Alterna Bank is an online bank.
Motive Financial is an online division of Canadian Western Bank, which means the Canada Deposit Insurance Corporation secures your deposits. Motive Financial’s Tax-Free Savings Account rates are among the highest on this list at 2.40%. There is no minimum account balance on new deposits and transfers are free and unlimited.
CIBC Tax Advantage Savings Account
CIBC TFSA rates are on the lower end at 1.15%, making this account best for short term deposits. The account has no monthly fees, but e-transfers cost $1.50 each. Those who prefer to do their banking at a branch instead of online may appreciate CIBC’s many brick and mortar locations.
With better margins achievable by cutting out brick-and-mortar costs, online-only banks like Hubert are able to offer you high-interest tax-free savings through products like the Happy Savings Account. This account’s interest rate is an impressive 2.50% with no minimum balance, charging no fees and providing full access to your account from an easy web dashboard. Linking in other banks’ accounts is easy, and everything is accessible via mobile as well.
A new online-only financial institution rivaling Tangerine Bank and Simplii Financial, motusbank offers a TFSA account that collects 2.50% interest and makes it easy to use your money flexibly. With no monthly account fees or minimum balance required, you’re less restricted, and unlimited self-serve transactions are nice if you don’t mind doing things yourself. motusbank TFSAs can also hold GICs, ranging from 1-5 years with interest rates from 2.80% – 3.25%. As a member of CDIC, deposits are insured up to $100,000.