Best TFSA Accounts in Canada 2023

Best TFSA Savings Account: EQ Bank

One of the best TFSA Savings Account for Canadians is the EQ Bank Savings Account. Once you turn 18, the minimum age to contribute to your TFSA, you can open a TFSA account with EQ bank. Any Candian over the age of 18 that has never contributed to their TFSA or has not reached their contribution limit can open an account with EQ Bank. As long as you don’t over contribute to your account, you won’t pay a single fee. The best perks to the EQ TFSA Savings account are the unlimited withdrawal options and the 3% tax-free interest.

Many TFSA accounts will only allow for 5 withdrawals a year and charge a fee for additional withdrawals. EQ Banks lets you access money in your TFSA as many times as you want. A huge benefit compared to other options. EQ bank also allows you to earn 3%* of tax-free interest on every dollar in your account.

Stocks and exchange traded funds (ETFs) can both offer a far greater return, maximizing the tax savings capabilities of your TFSA. However, this also means assuming more risk. Investing in stocks requires opening a self-directed TFSA investment account with a bank, investment firm or online broker. You can get ad-vice from a broker, which you will pay for, or you can try investing in stocks on your own if you have the knowledge and the time to spend on research.

ETFs work a little differently. Essentially an ETF is a basket of stocks or bonds, or both. Although similar to mutual funds, ETFs tend to be low-cost. And, unlike mutual funds, you can easily purchase and sell off ETFs securities. In other words, if you need the money from your TFSA ETFs, it will be available to you. The additional bonus of ETFs is that you can get instant diversification and the ability to purchase in small amounts.

An all-in-one ETF, which combines a pre-determined balance of stocks and bonds, can simplify your TFSA investment strategy. They’re available in balanced, con-servative and even more aggressive bundles. You can also choose to invest in ETFs that include investments from specific industries, geographical regions or even ETFs that mirror particular markets.

Online brokers, such as Questrade or Wealthsimple Trade, are a great way to get started with TFSA stock trading or ETFs.

Questrade

For investors who want to manage their TFSA investments on their own, online broker Questrade offers Questrade Self-Directed Investing. There are no account opening fees, no annual TFSA account fees, no commissions on buying ETFs and low commissions on stock trades. From your trading account, you can invest in various products, including stocks, bonds, ETFs, mutual funds, GICs and precious metals. Questrade trading allows you to manage your transactions from your computer or a mobile device. They also offer an advanced trading platform for more savvy, advanced investors. To open a trading account, you must invest a minimum of $1000 in your TFSA account.

Wealthsimple Trade

Wealthsimple Trade is online brokerage Wealthsimple’s option for self-managing your TFSA portfolio. Through your no-commission Wealthsimple Trade account, you can purchase fractional shares, stocks, bonds, GICs and any other investment that the CRA allows. There is no commission for Wealthsimple trades on Canadi-an stocks and no account minimums. If you want to trade in stocks, you will pay a 1.5% currency conversion fee, but for $10 per month(Pro membership), you can get unlimited access to USD accounts, including access to ETFs and stocks with no conversion fees. You will only pay the conversion fee if you move money between your Canadian and US accounts.

Who has the best TFSA rates in Canada? That depends, as rates change often. It’s worth checking out several investment options before investing to ensure you get the best rates. Interest rates can vary widely with TFSA accounts. While high-interest rates are definitely appealing, you will also have to consider minimum balances and additional fees in deciding if that high-interest rate is worth it.

These accounts do not require a minimum term and essentially act as high-interest savings accounts for your TFSA. Many financial institutions will offer an initial promotional rate that can earn you higher interest rates for several months or provide a cash bonus with your initial investment.

Here is a sampling of some of the best TFSA current account interest rates in Canada:

• EQ Bank – 1.25%
• Canadian Tire – 1.25%
• Manulife – 1.50%
• Mostusbank – 2.25% (promotional rate)
• Tangerine – 2.25% (promotional rate)

*The above rates are as of March 2022

What is the best TFSA account? That depends on why you are saving, how long you plan to keep your money in a TFSA and your investments skills and interest. The TFSA is a flexible and effective financial tool for saving, so it’s not surprising that they are growing in popularity. Get the most out of the tax savings available through a TFSA by using it for your higher-earning savings.

Robo-advisors are a relatively inexpensive choice for first-time investors and anyone who lacks the time or interest to manage their own investments. Their ETF offerings can deliver diversification and the risk level you are willing to tolerate. And finally, remember, you do not lose contribution room when you withdraw, so you can continually take advantage of the TFSA to grow your savings and help you pay for the things you need or simply want.