High Interest TFSA Savings Account Canada 2025

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Set up direct deposit and skip the monthly fee. Free to open, and the Easy plan has no monthly fee. Worth doing if you will actually move your pay or your CRA deposits over, not if the card sits unused. Code BREMO2026.

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Where to find the best TFSA savings account rates in Canada and how a high-interest TFSA compares to investing, including when each makes sense.

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Stop paying bank fees: every dollar saved goes into your TFSA. Code BREMO2026 = $20 bonus.

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What Is a High-Interest TFSA?

A high-interest TFSA savings account (HISA TFSA) is simply a TFSA where the funds sit in a savings deposit earning a variable interest rate, rather than being invested in stocks, ETFs, or GICs. The interest earned is completely tax-free inside the TFSA, making it especially valuable since interest income is otherwise taxed at your full marginal rate in a non-registered account.

Big Banks vs Online Banks: The Rate Gap

The Big 5 Canadian banks (RBC, TD, BMO, Scotiabank, CIBC) typically offer very low TFSA savings rates, often 0.01% to 1%. Online banks and credit unions regularly offer 2 to 5x more. Shopping around is essential.

Institution Type	Typical TFSA Savings Rate (2025)	Notes
Big 5 Banks	0.5% to 1.5%	Promotional rates sometimes higher
EQ Bank	3.0% to 4.0%	CDIC insured, no fees
Oaken Financial	3.0% to 4.5%	CDIC insured via Home Bank
Achieva Financial (credit union)	3.5% to 4.5%	Manitoba deposit insurance
Outlook Financial (credit union)	3.5% to 4.5%	Manitoba deposit insurance
Motusbank	2.5% to 3.5%	CDIC insured

Rates as of early 2025. Always verify current rates directly with the institution.

Is a HISA TFSA Better Than Investing?

It depends entirely on your time horizon and risk tolerance:

Short-term (under 2 years): HISA or GIC is better. Market volatility could mean your investments are worth less when you need the money.
Medium-term (2 to 5 years): Consider a mix, some in HISA for liquidity, some in a conservative balanced ETF or GIC.
Long-term (5+ years): Broad equity ETFs have historically returned 7 to 10% annually, significantly more than even the best HISA rates. For long-term wealth building, investing beats saving accounts.

Many Canadians use a HISA TFSA as a "parking lot" for contributions until they decide on longer-term investments, or for the emergency fund portion of their TFSA.

HISA TFSA as an Emergency Fund

A HISA TFSA makes an excellent emergency fund vehicle. Your money is:

Fully liquid: accessible any business day
Earning interest tax-free
Protected by deposit insurance (CDIC or provincial)
Not subject to income tax on withdrawal

The only consideration: withdrawals reduce your contribution room until January 1 of the following year. But for an emergency fund, that trade-off is generally worth it versus keeping cash in a non-registered account where interest is taxed.

How to Open a HISA TFSA

Apply online at EQ Bank, Oaken Financial, or your chosen institution
Provide your SIN, government ID, and complete the TFSA designation form
Transfer funds from your bank account, this counts as a TFSA contribution, so confirm your available room first
To move an existing TFSA from another institution without using contribution room, request a direct TFSA transfer (not a withdrawal)

Deposit Insurance on HISA TFSAs

TFSA deposits at CDIC member institutions are insured up to $100,000 per depositor per insured category. TFSAs are a separate coverage category from other deposits, meaning your TFSA is covered up to $100,000 independently of your other accounts at the same bank. Credit union deposits are covered by provincial deposit insurance corporations, which vary by province but generally provide comparable protection.

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