Canada Tax Free Savings Accounts – Current Rates

A Tax Free Savings Account (TFSA) is a great way to save money and not have to worry about paying taxes on withdrawls or the interest earned. You are able to set aside $5,000 each year in various saving options.

Here is some more information on Tax Free Savings Accounts:
– Anyone aged 18 or older can contribute $5,000 per year to the TFSA. This means you AND your spouse can each have a TFSA and are then able to jointly save $10,000 tax free!
– You never lose contribution room, even when withdrawn.
– Withdrawls can be made at any time.
– Contribution room can be carried forward to future years.
– Contributions are NOT tax deductible for income tax purposes.
– Capital losses cannot be claimed.
– Interest income earned nor withdrawls will affect your eligibility for government benefits and credits.
– Any amount withdrawn can be put back into the TFSA at a later date without reducing your contribution room.
– You can choose from a wide range of investment options such as mutual funds, Guaranteed Investment Certificates (GICs) and bonds.

Here are the current TFSA interest rates:
CTFS = 2.15% ($50 transfer out fee, $0 minimum deposit)
ICICI Bank = 2.00% ($50 transfer out fee, $0 minimum deposit)
ING Direct = 2.00% ($0 transfer out fee, $0 minimum deposit)
RBC = 1.95% ($50 transfer out fee, $50 minimum deposit)
Scotiabank = 1.50% ($50 transfer out fee, $25 minimum deposit)
BMO = 1.25% ($0 transfer out fee, $50 minimum deposit)
CIBC = 1.25% ($100 transfer out fee, $25 minimum deposit)
TD = 1.25% ($50 transfer out fee, $0 minimum deposit)
PCF = 1.25% ($50 transfer out fee, $0 minimum deposit)
HSBC = 0.80% ($25 transfer out fee, $0 minimum deposit)

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