2024 TFSA Interest Rates: Top Rates at TD, RBC, CIBC, BMO, and Scotiabank

Updated on January 26, 2024

If you’re thinking about opening a tax-free savings account but unsure about which bank offers the best interest rates, you’re in the right place. Dive into this article to discover the 2024 TFSA interest rates at TD, RBC, CIBC, BMO, and Scotiabank.

TFSA Interest Rate

TFSAs serve as tax-free growth accounts, allowing the accumulation of various investments. The most advantageous high-interest tax-free savings accounts (TFSAs) not only provide attractive interest rates but also come with minimal fees.

A tax-free savings account (TFSA) is a registered plan that generates tax-free interest. Operating with tax-sheltered advantages, high-interest TFSAs operate much like regular savings accounts.

In this article, we’ll delve into a comprehensive exploration of TFSA interest rates, examining how they work and detailing the interest rates offered by leading banks.

What is a TFSA?

Back in 2009, Canadians gained initial access to tax-free savings accounts, commonly known as TFSAs. Contrary to the notion that TFSAs are solely for savings accounts, they serve a broader purpose. The rationale is clear—it enables your money to grow at an accelerated pace compared to a regular savings account or a high-interest savings account that doesn’t qualify for TFSA status.

While TFSAs are versatile enough to accommodate various investments, they can also function as straightforward savings accounts for holding cash. Leveraging tax-free compound interest, TFSAs contribute to the growth of medium- to long-term wealth for individuals and play a role in an individual’s overall portfolio.

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The Federal Income Tax Act outlines the operational guidelines for TFSAs, with the Canada Revenue Agency (CRA) responsible for overseeing and enforcing these regulations.

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
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Highest Interest Rate in 2024

In contrast to other tax-free savings accounts or regular savings accounts, a high-interest TFSA provides a more substantial interest rate. This section presents the TFSA interest rates from some of Canada’s major banks. Utilize this information to identify the bank offering the highest interest rates in 2024.


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 receive depends on the bank where your TFSA is located. Typically, online-only banks offer higher rates compared to traditional banks and credit unions.

How to Open a TFSA?

Any Canadian resident, aged at least eighteen with a valid SIN, can open a tax-free savings account (TFSA). Additionally, non-residents of Canada, aged at least eighteen with a valid SIN, are eligible to apply for a TFSA.

Various entities, including banks, insurance firms, credit unions, trust companies, bargain brokerages, and robo-advisors, offer access to TFSAs. Creating one is a straightforward process, similar to opening any other bank account, as long as you meet the specified requirements.

Conversely, if contributions are made while you are a non-resident, a 1% tax will be applied for each month the funds stay in the account. To initiate a TFSA, reach out to your financial institution, credit union, or insurance provider. Your SIN and birthdate will be required by the issuer to register your eligible arrangement as a TFSA.

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Which banks offer TFSAs the best terms?

For TFSA savings accounts, the best options among Canadian banks are those that offer the highest daily interest rates, have no minimum deposit requirements, and impose no fees. Notable choices include CIBC, Motusbank, Alterna Bank, and EQ Bank.

In a Tax-Free Savings Account (TFSA), you can diversify your investments with assets like stocks, bonds, mutual funds, exchange-traded funds (ETFs), and all types of Guaranteed Investment Certificates (GICs). It’s essential to be aware of contribution limits and any potential income or capital gains from your investments within your TFSA.

How can I obtain a TFSA with the best interest rates?

Secure the highest interest rates by exploring and comparing TFSA savings accounts online. Look for accounts offering substantial daily savings rates, ideally 2.50% or higher. Additionally, exercise caution in scrutinizing any associated costs related to a linked checking account.

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