If you’re planning to open a tax-free savings account (TFSA) and are unsure which bank offers the best interest rates, you’ve come to the right place. This article provides information on the highest TFSA interest rates available at TD, RBC, CIBC, BMO, and Scotiabank in 2024.
Contents
TFSA Interest Rate
TFSAs are savings accounts that grow tax-free and can hold various investments. The most advantageous high-interest TFSAs offer high interest rates with minimal expenses.
A TFSA is a type of registered plan that provides tax-free interest. High-interest TFSAs work similarly to regular savings accounts but with tax-sheltered benefits.
In this article, we’ll discuss TFSA interest rates, how they work, and the rates offered by some of the top banks.
What is a TFSA?
Introduced in 2009, tax-free savings accounts (TFSAs) allow Canadians to grow their savings tax-free. Unlike regular savings accounts, TFSAs can house a variety of investments, making them a powerful tool for growing wealth faster.
TFSAs can also serve as simple savings accounts for holding cash, helping individuals grow medium- to long-term wealth through tax-free compound interest. The Federal Income Tax Act governs TFSAs, and the Canada Revenue Agency (CRA) oversees their enforcement and management.
TFSA Interest Rate Overview
| Article Head | TFSA Interest Rate |
| Country | Canada |
| Availability | In various Banks |
| Interest | Varies with bank to bank |
| Minimum Balance | Generally not specified |
| Fees | Generally free of cost |
| To get Detailed Discussion | Click Here |
Highest Interest Rate in 2024
Highest Interest Rate in 2024
High-interest TFSAs offer better rates than standard savings accounts. Below are the TFSA interest rates from some of Canada’s top banks for 2024. Use this information to find the bank offering the highest rates.
| Name of the Bank | TFSA Rate for 2024 |
|---|---|
| TD | 2.5% to 3.6% |
| RBC | 3.3% to 4.5% |
| CIBC | 0.9% to 4.5% |
| BMO | 1% to 2.5% |
| Scotiabank | 0.8% to 3.6% |
The interest rate you earn will depend on the bank where your TFSA is held. Online-only banks often offer higher rates than traditional banks and credit unions.
How to Open a TFSA
Anyone who is a Canadian resident, at least 18 years old, and has a valid SIN can open a TFSA. Non-residents who meet these criteria can also open a TFSA, but contributions made while a non-resident incur a 1% tax each month the money remains in the account.
You can open a TFSA at banks, insurance firms, credit unions, trust companies, bargain brokerages, and robo-advisors. It’s the same process as starting any other bank account. You’ll need to provide your SIN and birthdate to register your account as a TFSA.
FAQs
Which banks offer the best TFSA terms?
The best TFSA savings accounts are offered by Canadian banks with the highest daily interest rates, no minimum deposit requirements, and no fees. These include CIBC, Motusbank, Alterna Bank, and EQ Bank.
What can be placed in a TFSA?
You can hold various assets in a TFSA, such as stocks, bonds, mutual funds, ETFs, and GICs, to earn tax-free profits on your investments. Remember that there are contribution limits to your TFSA, as well as potential income or capital gains from your investments.
How can I get the best TFSA interest rates?
Compare TFSA savings accounts online to find the best interest rates. Look for accounts offering high daily savings rates of 2.50% or above. Also, be mindful of any fees associated with a linked checking account.
We are grateful that you chose our platform to learn more about TFSA Interest Rates in Canada.