Name: Best TFSA HISA
Creator: NerdWallet

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ALSO CONSIDER: Best high-interest savings accounts | Best high-interest registered retirement savings plans (RRSPs) | Best savings accounts | Best online savings accounts

Tax-free savings accounts (TFSAs) are a type of registered plan that earns tax-free interest. High-interest TFSAs act like regular savings accounts but with tax-sheltered benefits.

Our picks for the best TFSA HISAs
Other top high-interest TFSA rates in Canada
What to know about tax-free savings accounts

Summary of our picks for the best high-interest TFSAs

Tangerine Tax-Free Savings Account
WealthONE Tax-Free Savings Account
Canadian Tire Tax Free® High Interest Savings Account
Saven Financial TFSA
Motive Financial TFSA Savings Account
Achieva Financial TFSA Savings Account
Steinbach Credit Union TFSA Variable Savings

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Tangerine Tax-Free Savings Account

Interest Rate

5.50%*

0.30% regular interest rate. The Tangerine New Client 5.50% Interest Rate Offer (the "Offer") is available to new Tangerine Clients who: (a) have a Client Number created between November 6, 2024 and March 31, 2025, and (b) open an Eligible Savings Account as the Primary Account Holder within 60 days of the date their Client Number was created.

Promotional rate
Bonus Offer

N/A
Monthly Fee

$0

This flexible, no-fee TFSA comes with a generous promotional offer that will earn you cash and a high rate of return for five months.
Tangerine is a subsidiary of Scotiabank and offers chequing and savings accounts, GICS, registered accounts, credit cards, mortgages, loans and investment products. Read our review of Tangerine for more information.

0.30% regular interest rate.
No monthly fee.
Automated savings program available.
Manage your money by phone, through online banking and a mobile app.
Other Tangerine TFSA investment options include Tax-Free GICs, available in 90-day to 5-year terms, and investment accounts and portfolios.
Service fees are listed online.
Deposits and withdrawals are free.
$50 fee to transfer your TFSA to another bank (transferring in another TFSA is free).
No minimum balance is required.
Eligible for CDIC deposit insurance.

WealthONE Tax-Free Savings Account

Interest Rate

3.75%

$1,000 opening deposit required
Bonus Offer

N/A
Monthly Fee

$0

Use this no-fee TFSA to earn tax-free interest in an easy, flexible way.
WealthONE Bank of Canada is a Canadian Schedule 1 bank that serves all Canadians including the newcomers. It has two offices in Toronto and Vancouver and offers online banking, a mobile app and competitive interest rates.

No monthly fee.
Automated savings program available. Manage your money by phone, through online banking and a mobile app.
Other Wealth One TFSA investment options include guaranteed investment certificates, available in 6-month to 5-year terms, and investment accounts and portfolios through Smart Money Invest.
Service fees are listed online.
Deposits and withdrawals are free.
$50 fee to transfer your TFSA to another bank (transferring in another TFSA is free).
$100 fee to close your TFSA account.
No minimum balance is required.
Eligible for CDIC deposit insurance.

Canadian Tire Tax Free® High Interest Savings Account

Interest Rate

3.70%

No minimum balance required
Bonus Offer

N/A
Monthly Fee

$0

This online-only high-interest TFSA features all the benefits of Canadian Tire’s ‘Money Magnet’ HISA, with tax-free advantages.
Canadian Tire Bank (CTB) is a federally chartered virtual bank that operates the Triangle Rewards Program and offers credit cards, savings accounts, and GICs.

3.70% variable interest rate. Interest is calculated daily, based on the closing balance of the account, and paid monthly.
No monthly fee.
Automatic savings plan available.
Manage your money by phone or through online banking.
Other Canadian Tire TFSA investment options include Tax-Free GICs, available in one to five-year terms.
Service fees are listed online.
Deposits and withdrawals are free.
$50 fee to transfer your TFSA to another bank (transferring in another TFSA is free).
No minimum balance.
Eligible for CDIC deposit insurance.
This account is not available to Québec residents.

Saven Financial TFSA

Interest Rate

3.40%
Bonus Offer

N/A
Monthly Fee

$0

Saven Financial TFSA earns you an attractive interest rate with an option to grow your tax-free savings in a GIC.
Saven Financial is a division of FirstOntario Credit Union. The credit union offers attractive perks and interest rates on savings accounts and GICs. Not available to Quebec residents.

Grow savings in a high interest savings account, tax free.
Interest is calculated daily and paid on a monthly basis.
No monthly fees or minimum balance requirements.
Potentially earn higher returns with a GIC.
Get unlimited free transfers. Contribution and transfer limits apply.
Eligible deposits covered under the Financial Services Regulatory Authority of Ontario’s (FSRA) deposit insurance program.

Motive Financial TFSA Savings Account

Interest Rate

3.20%

No minimum balance required
Bonus Offer

N/A
Monthly Fee

$0

Earn interest at a competitive rate on this no-fee and no-minimum balance high-interest TFSA.
Motive Financial is an online division of Canadian Western Bank and offers chequing and savings accounts, registered plans and GICs.

3.20% variable interest rate. Interest is calculated on the daily closing balance at the applicable rate tier and paid on the last day of the month, for the period beginning on the last day of the previous month and ending on the second last day of the month.
No monthly fee.
Withdrawals can be deposited into a Motive Savings or Motive Chequing account, a no-fee chequing account that earns 0.15% interest.
Manage your money by phone, through online banking and a mobile app.
Other TFSA investment options include the Motive® TFSA GIC, available in one to 10-year terms.
Service fees are listed online.
Free TFSA withdrawals and deposits.
$50 fee to transfer your TFSA to another bank (transferring in another TFSA is free).
$50 fee to close the account within one year of opening.
No minimum balance is required.
Eligible for CDIC deposit insurance.
Motive Financial products are not available to Québec residents.

Achieva Financial TFSA Savings Account

Interest Rate

3.00%

No minimum balance required
Bonus Offer

N/A
Monthly Fee

$0

This high-interest no-fee TFSA will help you save up for a TFSA GIC or a Qtrade Direct Investing online investment account, both offered through the virtual bank.
Achieva Financial is an online division of Manitoba’s Cambrian Credit Union and offers savings accounts, GICS, TFSAs, Registered Retirement Savings Plans (RRSPs), and Registered Retirement Income Funds (RRIFs).

3.00% variable interest rate. Interest is calculated on the daily closing balance and added to the principal on the last day of each month.
No monthly fee.
To open this account, you must agree to become a member of Cambrian Credit Union Limited, which requires a $5 share. Your is considered an investment and is fully refundable should you decide to cancel your membership.
Earn $1 per month when you choose electronic documents.
Manage your money by phone, through online banking and a mobile app.
Other Achieva TFSA investment options include TFSA GICS, available in one to five-year terms, and Qtrade Direct Investing online investment accounts.
Service fees are listed online.
Free deposits and one free cheque, direct transfer or pre-authorized payment every month.
$15 fee to close the account within six months of opening.
No minimum balance is required.
Eligible for Deposit Guarantee Corporation of Manitoba deposit insurance.

Steinbach Credit Union TFSA Variable Savings

Interest Rate

2.80%
Bonus Offer

N/A
Monthly Fee

$0

SCU’s TFSA Variable Savings offers a flexible way to save and earn tax-free interest for your short- or long-term goals.
Steinbach Credit Union, or SCU is one of Manitoba’s largest credit unions offering personal and business solutions online, by phone and in person.

Offers a competitive, variable interest rate.
No introductory rate to expire after a few months — Steinbach Credit Union offers high-interest rates right from dollar one.
Interest is calculated on your minimum monthly balance and paid annually on December 31st.
Automate your contributions to your TFSA monthly so you can save without even thinking about it. Make sure you’re within your annual contribution limits.
Deposits can be added to your savings at any time without paying a fee.
All deposits are guaranteed 100% by the Deposit Guarantee Corporation of Manitoba.

Top high-interest TFSA rates in Canada:

Savings Account	Interest Rate	Monthly Fee	Insurance
Achieva Financial TFSA Daily Interest Savings Account	3.00%	$0	Deposit Guarantee Corporation of Manitoba
Alterna Bank TFSA HISA	1.65%	$0	CDIC
ATB Financial Tax-Free Saver Account (Alberta residents only)	0.50%	$0	Guaranteed under the ATB Financial Act
Canadian Tire Tax Free High Interest Savings® Account**	3.00%	$0	CDIC
Canadian Western Bank WestEarner® TFSA Account	0.55%	$0	CDIC
CIBC TFSA Tax Advantage Savings Account®	0.60%	$0	CDIC
EQ Bank TFSA Savings Account**	2.50%	$0	CDIC
FirstOntario Credit Union TFSA Investment Savings (Ontario only)	1.30%	$0	Financial Services Regulatory Authority of Ontario
Hubert Financial Happy TFSA HISA**	2.40%	$0	Deposit Guarantee Corporation of Manitoba
ICICI Bank TFSA Savings Account	1.25%	$0	CDIC
Island Savings TFSA HISA (British Columbia only)	1.02%	$0	CDIC
Manulife Bank Tax-Free Advantage Account	1.25%	$0	CDIC
MAXA Financial TFSA High Interest Savings Account	2.70%	$0	Deposit Guarantee Corporation of Manitoba
Meridian Credit Union TFSA HISA	1.35%	$0	Financial Services Regulatory Authority of Ontario
Motive TFSA Savings Account**	3.20%	$0	CDIC
Motusbank TFSA High interest savings account	1.35%	$0	CDIC
National Bank of Canada Cash Advantage Solution TFSA	0.75% - 3.75%	$0	CDIC
Outlook Financial TFSA High-Interest Savings Account	2.65%	$0	Deposit Guarantee Corporation of Manitoba
Peoples Trust Tax-Free Savings	2.25%	$0	CDIC
Saven Financial TFSA HISA	3.40%	$0	Financial Services Regulatory Authority of Ontario
Steinbach Credit Union TFSA Variable Savings	2.90%	$0	Deposit Guarantee Corporation of Manitoba
Tangerine Tax-Free Savings Account	up to 5.50%*	$0	CDIC
WealthONE Tax-Free Savings Account	3.75%	$0	CDIC

**Not available to Quebec residents.

Methodology

NerdWallet 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.

Things to know about Tax-Free Savings Accounts

By Barry Choi

What is a Tax-Free Savings Account?

The tax-free savings account, or TFSA, was introduced to Canadians in 2009. With this type of account, you are not required to pay taxes on the interest it earns. This is obviously appealing since it’s a way to grow your money even faster than a traditional savings account or non-TFSA high-interest savings account.

» Make sure you understand the basics: How interest rates work in Canada

How to open a 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.

» MORE: Read our full review of Scotiabank TFSA

TFSA eligibility

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 older.

Both residents and non-residents of Canada can open a TFSA so long as they meet the other eligibility requirements. However, non-residents may be subject to a 1% tax on some contributions.

In most provinces and territories, you must wait until the date of your 18th birthday to open a TFSA. However, once you turn 18, you get the total contribution limit amount for that year. For example, let’s say you turned 18 on July 7, 2023. You’d be able to open a TFSA on that day and contribute up to $6,500 since that’s the TFSA contribution limit for 2023.

However, in some provinces, you can’t open a TFSA until you are 19, even though you start accumulating contribution room at age 18. If you reside in British Columbia, New Brunswick, Newfoundland and Labrador, Nova Scotia, Northwest Territories, Nunavut, or Yukon, the age of eligibility for a TFSA is 19. In this case, you’d get the contribution room for the year you turn 19 and the previous year.

So, let’s say you live in Vancouver and turn 19 on September 9, 2023. On your birthday, you’d have access to a total of $12,500 in TFSA contribution room since the limit for 2022 and 2023 was $6,000 and $6,500, respectively.

TFSA contribution room and withdrawals

Before opening your TFSA, it’s important to be familiar with the rules.

TFSA contribution room

There’s an annual dollar limit on how much you can contribute to a TFSA each year. Here are the TFSA contribution limits since 2009:

2009 – $5,000
2010 – $5,000
2011 – $5,000
2012 – $5,000
2013 – $5,500
2014 – $5,500
2015 – $10,000
2016 – $5,500
2017 – $5,500
2018 – $5,500
2019 – $6,000
2020 – $6,000
2021 – $6,000
2022 – $6,000
2023 – $6,500
2024 – $7,000

Your “contribution room” is the total combined annual contribution limits of all the years you’ve been eligible for a TFSA. Even if you haven’t been investing in a TFSA, you’ve been accumulating contribution room since 2009 for every year that you’ve been at least 18 years old, have had a SIN and have been a Canadian resident.

If you turned 18 in 2013, for example, your lifetime TFSA contribution limit as of 2024 would be $75,500.

Since your investments can grow within your TFSA, having a book value that exceeds the contribution limit is possible. Additionally, since you can recontribute any withdrawals the following year, it’s possible to have a TFSA limit that exceeds what you have been allotted.

For example, let’s say you’ve maxed out your TFSA and you’ve made a capital gain of $20,000. You decide to withdraw that money. Come the new year, you can recontribute that $20,000, plus the additional contribution limit. By doing this, you’ve essentially created an additional $20,000 in contribution room.

Where can I find my TFSA contribution room?

You can find out where your TFSA contribution room stands by logging into your “My Account for Individuals” on the CRA website. Alternatively, you can contact the CRA directly and ask an authorized representative about your contribution room.

While this is a quick way to check your TFSA contribution room, it’s not always accurate. Financial institutions typically only report your contributions once a year. That means if you’ve made any additional contributions or withdrawals, the CRA likely won’t have the most up-to-date information.

The best thing to do is to keep your own records of your TFSA transactions. By doing this, it’s unlikely that you’ll ever go over your limit.

TFSA withdrawals

Most types of TFSA accounts allow you to withdraw money at any time. That said, some products within your TFSA, such as registered guaranteed investment certificates (GICs), may be locked in, so you may need to wait a certain length of time before you can withdraw them.

Withdrawing funds from a TFSA doesn’t affect your total contribution limit. However, if you plan on replacing the amount you’ve withdrawn, you need to be mindful of your contribution limits.

Any withdrawals you make in a calendar year can be replaced the following year. However, you can’t withdraw and replace funds in the same year unless you have the contribution room available.

» MORE: How to hold a GIC in a TFSA

How to use a TFSA

There are many different ways to use a TFSA. When deciding the best TFSA for your needs, first consider how you’ll use the account. Some people will use their TFSA for short-term savings, such as a home down payment, while others will use it for long-term goals, including investing for retirement.

» DISCOVER: 8 easy ways to start saving money

Types of TFSAs

The type of TFSA you set up depends on your goals. But here’s a brief overview of types of TFSAs and what you can do with them.

High-interest TFSA. This type of TFSA acts like a regular high-interest savings account but with tax-exemption benefits. Since you can access your funds quickly, it’s ideal for short-term savings or an emergency fund.
TFSA term deposits. You can lock away money for a specified period of time using a tax-free guaranteed investment certificate (GIC) or term deposit. These can be either redeemable, meaning you can cash out early, or non-redeemable. Non-redeemable GICs can offer higher rates of interest than redeemable GICs and high-interest TFSAs, but you won’t have immediate access to your money with this option.
TFSA investment account. This type of TFSA account allows you to invest TFSA funds. It may be managed by your financial institution or investment firm, including robo-advisors, or it can be self-directed, meaning you manage it on your own.

» See our picks: The best high-interest savings accounts in Canada

Investing your TFSA

A TFSA is pretty straightforward. You contribute any amount up to the current limit and your contributions grow tax-free. What often confuses people about TFSAs is the name. Even though it’s called a tax-free savings account, it can be used as an investment account.

Investment products can be purchased within the account, including:

Because of all the different ways you can use a TFSA, you may choose to open more than one. Just remember that your total amount of available contribution room does not change, and you can’t exceed that limit regardless of how many accounts you have. So, you’ll have to monitor the balances of all your accounts.

Times you may pay taxes on your TFSA

In most cases, any gains made within your TFSA are tax-exempt, but there are some scenarios where taxes may apply.

If you exceed your available contribution room, you’ll have to pay a tax of 1% on the excess contribution every month until you get your account back below your limit.
If you become a non-resident. Now let’s say you have a TFSA and decide to move overseas and become a non-resident for tax purposes. You would no longer gain any new contribution room, so you’d be taxed 1% on any extra deposits if you exceed your total limit.
If you use your TFSA for business purposes. Your TFSA is meant for personal use only and can’t be used for business purposes. For example, let’s say you decide to day trade in your TFSA. The CRA may consider this business use and tax all of your capital gains at your marginal tax rate. It doesn’t matter if you’re not a professional day trader. If the CRA considers it business use, they’ll tax you accordingly.

» MORE: How does income tax work?

When you contribute to your Registered Retirement Savings Plan, or RRSP, your taxable income is reduced by the same amount for the year. However, when you eventually withdraw that money, it will be taxed at your marginal tax rate.

With TFSAs, you don’t get a tax break on contributions, but all gains made 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.

» MORE: How to decide between TFSA and RRSP

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 a bit relative since rates fluctuate over time, and Canada has had record low interest rates in recent years. Still, the interest rate offered is a fairly simple way to compare TFSAs when searching for the best account for your needs.

» MORE: » MORE: Canada’s Best High-Interest Savings Accounts of 2024

DIVE EVEN DEEPER

TFSA vs. RRSP: How to Choose

The tax-free withdrawals of a TFSA offer more flexibility, but the tax-deferred contributions of an RRSP are great for retirement. The type of account you choose will depend on your savings goals.

Hannah Logan

TFSA Contribution Limit and Withdrawal Rules for 2024

TFSA contribution limit for 2024 is $7,000 — an annual ceiling for how much you can contribute to a tax-free savings account. However, over-contributing, can cost you a tax penalty.