Buying a home is a major milestone for many Canadians, but it can be an expensive process. To help first-time homebuyers save for their dream home, the Canadian government introduced the Tax-Free First Home Savings Account (TFHSA). This special savings account allows Canadians to save money for their first home without paying taxes on the interest earned.
While the government created this program, it is up to individual financial institutions to offer TFHSAs. So, which Canadian banks are currently offering this tax-free savings account?
- Alterna Savings
Alterna Savings is a credit union that offers a range of financial products, including the TFHSA. To open an Alterna Savings TFHSA, you’ll need to become a member of the credit union. Once you’re a member, you can open a TFHSA with a minimum deposit of $100.
- Canadian Western Bank
Canadian Western Bank is a regional bank that operates primarily in Western Canada. They offer a TFHSA that pays a competitive interest rate and requires no minimum balance to open.
- Coast Capital Savings
Coast Capital Savings is a credit union based in British Columbia that offers a TFHSA with no monthly fees or minimum balance requirements. This account pays interest on a tiered rate system, with higher balances earning higher interest rates.
- Meridian Credit Union
Meridian Credit Union is the largest credit union in Ontario, and they offer a TFHSA with no annual fees and a competitive interest rate. You can open a Meridian TFHSA with a minimum deposit of $1,000.
- National Bank of Canada
The National Bank of Canada offers a TFHSA with a tiered interest rate system that pays higher interest rates on higher balances. There are no monthly fees or minimum balance requirements to open this account.
- RBC Royal Bank
RBC Royal Bank is one of the largest banks in Canada, and they offer a TFHSA with no monthly fees and a competitive interest rate. You can open a TFHSA with RBC with a minimum deposit of $25.
- Scotiabank
Scotiabank offers a TFHSA that pays a competitive interest rate and has no monthly fees. You can open a TFHSA with Scotiabank with a minimum deposit of $500.
- Simplii Financial
Simplii Financial is an online bank that offers a TFHSA with no monthly fees or minimum balance requirements. This account pays a competitive interest rate and can be opened with a minimum deposit of $100.
In conclusion, if you’re a first-time homebuyer looking to save for your dream home, there are several Canadian banks and credit unions offering the Tax-Free First Home Savings Account. Each institution offers unique features and benefits, so it’s important to compare their offerings and choose the account that best fits your needs.
