When considering TFSAs, you should consider the interest rates that financial institutions offer. Below is a breakout of the best TFSA rates in Canada for 2023.
Remember that a Tax-free Savings Account (TFSA) is just a receptacle in which you hold your savings tax-free. This means, you can use it as a regular savings account with a regular (read: not so high) interest rate, or you can hold investments like GICs, stocks or bonds there that typically have higher interest rates.
Scotiabank MomentumPLUS Savings Account
- Interest Rate: up to 5% until June 30th, 2023
- Fees: $0
- Bonus: N/A
Scotiabank offers up to 5% interest for five months with: Regular Interest1 (1.50%) + Premium Period Interest2 (0.85% – 1.15%) + Package Interest Rate Boost3 (0.05% or 0.10%)+ Welcome Bonus Interest Rate* (2.25%) on eligible deposits. The longer you save, the higher the rate. There is no minimum balance required and there are no fees to use this account.
Tangerine TFSA
- Interest Rate: 5% for five months
- Fees: $0
- Bonus: up to $400
Tangerine offers one of the best TFSA rate in Canada right now with its generous bonus and no monthly fees. To earn the high interest, you need to become a new online client before July 17, 2023 using the promo code EARNMORE. Open your first savings and checking account within 30 days and start earning 5% interest on your savings for five months. Then, open a TFSA and earn 5% interest on those savings, as well.
To earn the $400 bonus, open a savings and checking account within 30 days of becoming a client, activate your client card and start accumulating your bonus. You can earn 20% cash back for 60 days on eligible purchases and bill payments by using your card.
Automated savings plan is also available from Tangerine. You can put your savings on autopilot and earn high interest while sleeping.
Manulife Bank Tax-Free Guaranteed Investment Certificates
- Interest Rate: 4.25%
- Fees: $0
- Bonus: N/A
If you want to grow your money tax-free with Manulife, you need to put it into a GIC for a term. The terms are one, two, three, four and five years. The term that renders the highest interest right now is a one year term. The initial investment cannot be less than $2,500. There are no fees to open the account, make deposits or withdraw funds. You pay fees only if you want to withdraw cash before maturity from a GIC.
Home Trust TFSA High Interest Savings Account
- Interest Rate: 4.20%
- Fees: $0
- Bonus: N/A
This Home Trust account offers the possibility of earning interest while being able to access the funds at any time because it has no lock-in periods and maturity dates. The interest is calculated daily and paid monthly. The minimum initial investment is $1,000.
Ideal Savings TFSA
- Interest Rate: 3.75%
- Fees: $0
- Bonus: N/A
Ideal Savings is an online branch of Carpathia Credit Union Limited. In addition to a variable TFSA Savings Account with 3.75% interest rate, it offers redeemable and non-redeemable GICs with even higher interest rates. A good thing about this savings account is that a minimal balance is not required. The interest is calculated daily and paid out monthly. You can view your investments online at any time and you can transfer funds and pay bills through online banking. It is an easy and convenient way to save. This account is a no-fees deal and the deposits are 100% guaranteed.
Steinbach Credit Union TFSA Variable Savings
- Interest Rate: 3.75%
- Fees: $0
- Bonus: N/A
Similarly to Ideal Savings, Steinbach Credit Union offers a variable rate TFSA Account with 3.75% interest rate. It also offers GICs with higher rates than 3.75%. Interest is calculated monthly on a minimum monthly balance and paid yearly on December 31st.
Outlook Financial TFSA High-Interest Savings Account
- Interest Rate: 3.45%
- Fees: $0
- Bonus: N/A
Outlook Financial offers 3.45% interest rate when you keep your money in High-Interest Savings Account. You can transfer or withdraw your money at any time. You can transfer your money to GICs for even better interest, but then it will be locked for a term.
Hubert Financial Happy TFSA HISA**
- Interest Rate: 3.45%
- Fees: $0
- Bonus: N/A
Hubert Financial is an online division of Access Credit Union that offers savings accounts. It takes literally just a few minutes to open an account with Hubert. There is no minimum balance required for this account. Interest is calculated daily and paid out monthly.
Achieva Financial TFSA Daily Interest Savings Account
Achieva is another online bank that offers great rates on deposits. TFSA Daily Savings Account has a 3.40% interest rate. Their GICs range from 4.70 % to 4.85% depending on the term.
WealthONE Tax-Free Savings Account
WealthOne offers the same competitive rate of 3.40% for High Rate Savings Account, TFSA and RSP. It also offers one of the highest rates on GICs in Canada: 5% on a 5-year, non redeemable GICs.