tax free savings account (TFSA) strategy

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Tax free savings accounts and tax free GIC tips

What's your savings strategy?

Starting out - If you're a new saver, you may start with a tax free high interest savings account. Save what you can now and what you want later - your tax free allowance grows every year.

Getting established - Set up a tax free high interest savings account and a tax free GIC with your tax free allowance. You could keep about 40% of your allowance in your savings account for quick access needs like repairs and put the rest in a fixed high rate GIC for long-term savings (1 to 5 years).

Looking forward - After you open your tax free high interest savings account and fund it to meet your needs, consider using your tax free allowance each year to open fixed high rate GICs. Longer GIC terms usually earn higher rates.

While we cannot provide financial advice, we think that you will find these strategy tips helpful. See more options at the Government of Canada TFSA calculator.

Get the most out of your TFSA allowance

5 by 5 Strategy

Consider taking your $5,000 TFSA amount and opening a 5 year GIC at the start of each year—you usually have higher fixed rates with longer GIC terms.
Within 5 years, you’ll have a GIC maturing every year as a steady flow of income.