Tax-Free Interest PlusTM Savings Account

Print Print Tax-Free Interest Plus™ Savings Account Page

The less you have to pay in taxes, the more you can keep for yourself! Start saving for whatever you have in mind with a President's Choice Financial® Tax Free Savings Account (TFSA) where your interest grows tax-free.*

  • Competitive interest rate with no minimum balance required.
  • No fees, no fixed term and no minimum deposit to open your account.
  • Every dollar of interest earned is tax-free.
  • Withdraw your money at any time without tax penalty and re-contribute, up to your personal contribution limit, the following year. Any unused contribution room is carried forward to future years.
  • Increase your balance and watch your money grow by setting up easy, automatic payments into your TFSA.
  • Mutual Funds also available to be held in a TFSA so your investment income can grow tax-free as well.
  • View your account online, by phone or through mobile banking all for free.
Interest Rates Open Interest Rates DialogClose Interest Rates Dialog
This table lists the Tax-Free Interest Plus Savings Account interest rate
Daily Balance Annual Rate (%)
$0.00 and up

Interest is calculated on each day's closing balance and is paid into your account monthly. Rates subject to change.

About TFSAsopen About TFSA Dialog close About TFSA Dialog
  • If you are a Canadian resident and 18 years or older your TFSA dollar limit for 2016 is $5, 5001.
  • Unlike a Registered Retirement Savings Plan (RRSP) with a TFSA your earnings and withdrawals are tax-free and contributions are not tax-deducible which means the amount you invest is after-tax income.
  • You can withdraw money from your TFSA at any time without penalty and re-contribute, up to your personal contribution limit, the following year or in future years.
  • Just like an RRSP, when you file your tax return each year, the government will determine your remaining available tax-free savings contribution limit for the coming year.
  • Any unused contribution room is carried forward for you to use later.
  • You can have multiple TFSAs at multiple financial institutions just ensure you know how much you've contributed so you don't exceed your personal contribution limit. Your TFSA contribution room is made up of three things:

    • Annual TFSA dollar limit
    • Withdrawals made in the previous year (except to correct over-contributions)
    • Unused contribution room from the previous year

  • There is no need to close your TFSA once you reach a certain age.
  • To help find out what your TFSA contribution room is, you can go to this link at Canada Revenue Agency’s website
TFSA vs RRSPOpen TFSA vs. RRSP DialogClose TFSA vs. RRSP Dialog
This table describes TFSA versus RRSP
Purpose Designed to provide income after you retire. Designed to help you save money for a wide range of goals − not just retirement.
Minimum/Maximum Age Requirement No minimum age requirement to open, as long as you've earned income and filed a tax return. Must be closed by December 31 in the year you turn 71. Must be 18 years of age to open. There is no maximum age restriction to close an account.
Tax Deduction Contributions are tax-deductible, but when you withdraw any funds you must pay tax.2 Contributions are not tax-deductible, but all the interest and income earned is tax-free. Any money you withdraw is tax-free too.3
Contribution Limits

• Percentage of previous year's earned income, plus previously unused contribution room, less any pension adjustment.
• You can carry forward any unused amount to the following year or any year after that.
• Generally, amounts withdrawn cannot be re-contributed (other than under the Home Buyers' Plan or Lifelong Learning Plan).

• The government has set a TFSA dollar limit of $5,500 in 2016. You also can contribute up to the amount of any unused contribution room from previous years.
• The amount you can contribute is not based on income.
• Amounts withdrawn (excluding amounts withdrawn because of an over-contribution) may be re-contributed starting the year after the withdrawal.


• Over-contributions are assessed a 1% penalty per month4.

• Over-contributions are assessed a 1% penalty per month5.

Interest Income Not taxed until withdrawn. Not taxed.
Withdrawals Included in income and fully taxable at your marginal tax rate in the year withdrawn. Not included in income and are tax-free. Any amount withdrawn (other than due to over-contribution) is added to contribution room the next year.
Government Benefits Withdrawals are considered as income and may impact amounts you receive from income-tied government benefits or credits. Withdrawals are not considered as income and do not impact amounts you receive from income-tied federal government benefits or credits.
LegalOpen Legal Dialog Close Legal Dialog

Fresh Financial Thinking®