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What types of investment options are available in the TFSA?

You can contribute your savings to one of two options:

 

Tax Free High Interest Savings Account

A Canadian Tire Tax Free® High Interest Savings account allows you to save your money, tax free and enjoy all the benefits of a savings account.

  • Earn a high annual rate of interest
  • Grow your money tax-free
  • No monthly fees
  • No minimums
  • No lock-in period
  • Easily transfer funds online or by phone
  • Interest rates are annualized and are subject to change without notice. Interest is calculated daily, based on the closing balance of the account, and paid monthly
  • 24/7 Online banking
  • Telephone customer service between the hours of 8 AM and 10 PM ET Monday to Friday, 8 AM and 6 PM ET Saturday

Apply By Phone

Tax Free GIC

With our Canadian Tire Tax Free® GIC your interest is guaranteed for the term of the GIC and you earn that interest tax free! It's guaranteed high interest savings risk free. High interest. Tax free. Nice.

  • Earn a high annual rate of interest
  • No haggling about rates
  • Your rate is guaranteed for your entire term
  • Terms from 1 year to 5 years
  • Minimum investment of only $500
  • Interest rates are annualized. Interest is calculated based on the principal amount and the number of days in the term of your GIC
  • Interest is paid upon the maturity of your GIC, unless you have chosen to receive interest annually
  • 24/7 Online banking
  • Telephone customer service between the hours of 8 AM and 10 PM ET Monday to Friday, 8 AM and 6 PM ET Saturday 

Apply By Phone

Tax Free High Interest Savings Account Questions and Answers

1. What is a Canadian Tire Tax Free® High Interest Savings account (Tax Free HISA)?
2. What is the contribution limit this year?
3. When is the best time to invest my money?
4. Who is eligible for a Tax Free Savings Account(TFSA)?
5. How does a TFSA differ from a Registered Retirement Savings Plan (RRSP)?
6. Can I open more than one TFSA?
7. How will I know what my TFSA contribution room is for a given tax year?
8. What happens if I'm unable to contribute in a given year?
9. What happens if I contribute more than my TFSA contribution room in a given year?
10. Can I transfer money between my TFSA accounts?
11. What happens to my contribution room when I make a withdrawal?
12. Can I open a joint TFSA with my spouse or someone else?
13. Can I designate a successor holder or beneficiary on my TFSA?
14. What do I need to apply?
15. How can I transfer money to/from my Tax Free HISA?
16. If I am an existing customer, in one of your savings products other than the Tax Free HISA, do I have to fill out an application for a Canadian Tire TFSA?
17. Can I automatically transfer money into my Canadian Tire Tax Free HISA every month?
18. Do I have to maintain a minimum deposit?
19. Can I access my money whenever I need it?
20. Is my money insured?
21. How do I open or deposit to an account?
22. Are any charges applicable to the Tax Free HISA?

QUESTION

1. What is a Canadian Tire Tax Free® High Interest Savings account (Tax Free HISA)?

ANSWER

Tax Free HISA is a high interest savings account provided by Canadian Tire Bank. Since January 1, 2009, Canadian residents, who are 18 years of age or older with a valid SIN, have been eligible to contribute up to $5,000 annually to a Tax Free Savings Account (TFSA). Beginning in 2013, the annual contribution limit increased to $5,500. The interest earned on the account is not taxed, even when it’s withdrawn. Any unused contribution room from a given tax year is added to your contribution room for the next year. Your unused contribution room continues to accumulate year after year.

QUESTION

2. What is the contribution limit this year?

ANSWER

Beginning in 2013, the annual contribution limit increased to $5,500. Since January 1, 2009, Canadian residents, who are 18 years of age or older with a valid SIN, have been eligible to contribute up to $5,000 annually to a Tax Free Savings Account (TFSA), with unused contribution room carried forward and accumulated for future years. If you have never made a TFSA contribution before, the most you could contribute is $5,000 per year from 2009 to 2012 and $5,500 per year for 2013 and beyond. You should check with the Canada Revenue Agency (CRA) to determine your exact contribution limit. Visit the CRA website to learn more about a TFSA.
http://www.cra-arc.gc.ca/tx/ndvdls/tpcs/tfsa-celi/menu-eng.html

QUESTION

3. When is the best time to invest my money?

ANSWER

The beginning of the year is the ideal time to make a deposit to maximize your tax savings. By investing early you could earn the most interest tax free for that year.

QUESTION

4. Who is eligible for a Tax Free Savings Account(TFSA)?

ANSWER

TFSAs are available to Canadian residents, who are 18 years of age or older with a valid SIN. You cannot open a TFSA or contribute to one until you turn 18. However, when you turn 18, you can contribute up to the full TFSA dollar limit for that year.

NOTE: In certain provinces and territories, the legal age at which an individual can enter into a contract (which would include opening a TFSA) is 19. From 2009 to 2012, in such jurisdictions, an 18-year-old who would be otherwise eligible, would accumulate $5,000 contribution room for that year and carry it over to the following year. For 2013 and beyond, $5,500 would accumulate for that year and be carried forward to the following year.

QUESTION

5. How does a TFSA differ from a Registered Retirement Savings Plan (RRSP)?

ANSWER

While a RRSP is primarily intended for retirement, the TFSA is for everything else in your life. Both plans offer tax advantages, but they have 2 key differences:

  • TFSA withdrawals are not added to your income for tax purposes - they are tax-free. Withdrawals from an RRSP are added to your income and subject to tax.
  • Contributions to an RRSP are tax deductible and reduce your income for tax purposes. In contrast, contributions to your TFSA are not tax-deductible.

QUESTION

6. Can I open more than one TFSA?

ANSWER

You can have more than one TFSA. However, it is your responsibility to ensure that your total contributions do not exceed your contribution room in a given tax year. You should check with the CRA to determine your exact contribution limit.

QUESTION

7. How will I know what my TFSA contribution room is for a given tax year?

ANSWER

It is your responsibility to know what your contribution limit is for a given year. The Canada Revenue Agency (CRA) will track your available contribution room (including unused contribution room that is carried forward) and will report this amount to you as part of your Notice of Assessment that you will receive after filing your previous year's tax return. This information can be impacted by any withdrawals or contributions that you might make, so it is important that you keep track of your activities and available contribution room.

QUESTION

8. What happens if I'm unable to contribute in a given year?

ANSWER

Any unused contribution room from a given tax year will be added to your contribution room for the next year. There is no limit on the number of years that unused contribution room can be carried forward, so your unused contribution room will continue to accumulate until you are able to make contributions.

QUESTION

9. What happens if I contribute more than my TFSA contribution room in a given year?

ANSWER

The CRA will impose a penalty of 1% on the highest excess amount in that month, for each month as long as the excess remains.

QUESTION

10. Can I transfer money between my TFSA accounts?

ANSWER

If you have more than one TFSA, you can transfer funds between them without affecting your TFSA contribution room, as long as you arrange for the transfer to be done by the two Financial Institutions where the TFSAs are held. This would be considered a qualifying transfer and would have no tax consequences. If the transfer is not done directly by your Financial Institutions, that is, if you withdraw the funds from one TFSA and deposit those funds on your own with another Financial Institution, your deposit will be considered a separate contribution that will reduce, and may even exceed, your TFSA contribution room for the year. As a result you may be subject to a penalty on the excess contributions. Please also note that some Financial Institutions charge a fee when transferring assets. In the case of Canadian Tire Bank, we charge a fee of $50 when you transfer your TFSA to another Financial Institution.

QUESTION

11. What happens to my contribution room when I make a withdrawal?

ANSWER

Withdrawals reduce your available contribution room in the year of the withdrawal by the amount of the withdrawal. However, your contribution room is not lost - your withdrawal amount will be added to your contribution room for the following year. So you can re-contribute amounts that you withdraw from your TFSA, but you have to wait until the following year to do so.

QUESTION

12. Can I open a joint TFSA with my spouse or someone else?

ANSWER

No. Government rules only permit individual accounts.

QUESTION

13. Can I designate a successor holder or beneficiary on my TFSA?

ANSWER

The designation of a successor holder or beneficiary is currently available in all provinces/territories except Quebec and Nunavut.
If you would like to designate a successor holder or beneficiary on your Tax Free Savings Account (TFSA), please download, complete and sign a Tax Free Savings Account Successor Holder and Beneficiary Designation form and mail it to: Canadian Tire Bank, PO Box 3000, STN Main, Welland, ON, L3B 5S5.

QUESTION

14. What do I need to apply?

ANSWER

To apply, you'll need:

  • Your Social Insurance Number (SIN). Note: The CRA requires that your SIN be collected as part of the TFSA application process so that they can provide you with your annual TFSA contribution room as part of your T1 Notice of Assessment.
  • A cheque from a bank account in your name held at another Canadian Financial Institution (in Canadian funds). The cheque must be pre-printed with your name (sorry - cheques with handwritten names and business cheques will not be accepted).

QUESTION

15. How can I transfer money to/from my Tax Free HISA?

ANSWER

Once your linked external account is set up, you may transfer funds online or by calling one of our customer service representatives at 1-866-681-CTFS (2837) between the hours of 8 AM and 10 PM ET Monday to Friday, 8 AM and 6 PM ET Saturday. If you would like to transfer your TFSA from us to another Financial Institution, a $50 fee applies.

QUESTION

16. If I am an existing customer, in one of your savings products other than the Tax Free HISA, do I have to fill out an application for a Canadian Tire TFSA?

ANSWER

Yes. However, if you are already an existing customer in another savings product, applying for a Tax Free HISA will be even easier since we already have your information on hand. Government regulations require that you agree to the terms and conditions before opening your account. Just call 1-866-681-CTFS (2837) and one of our customer service representatives will have your Tax Free HISA set up for you in no time!

QUESTION

17. Can I automatically transfer money into my Canadian Tire Tax Free HISA every month?

ANSWER

With the Automatic Savings Plan, deposits are automatically transferred from one of your other accounts into your Canadian Tire Tax Free Savings account. For more information, click here..

QUESTION

18. Do I have to maintain a minimum deposit?

ANSWER

There is NO minimum deposit requirement.

QUESTION

19. Can I access my money whenever I need it?

ANSWER

Of course! You can make withdrawals anytime you want via phone or online banking. Just remember, withdrawals reduce your available contribution room in the year of the withdrawal by the amount of the withdrawal. However, your contribution room is not lost - your withdrawal amount will be added to your contribution room for the following year. So you can re-contribute amounts that you withdraw from your TFSA, but you have to wait until the following year to do so.

QUESTION

20. Is my money insured?

ANSWER

Your deposits are eligible for up to $100,000 in CDIC insurance coverage.

QUESTION

21. How do I open or deposit to an account?

ANSWER

Just give us a call! Our knowledgeable customer service representatives are happy to answer your questions and help make sure you’re maximizing your savings. To open an account, just call us at 1-866-681-CTFS (2837), or to deposit to an account, simply go online at myctfs.com.

QUESTION

22. Are any charges applicable to the Tax Free HISA?

ANSWER

Yes, there is a $50 transfer fee for transferring your TFSA from us to another Financial Institution. In addition the products that you hold within a TFSA may have charges. In the case of a High Interest Savings Account the following charges apply:
 

Drafts / Office Cheques (Canadian dollars only)$5.00
Wire transfer to another Canadian financial institution (other than your External Account)$20.00
Wire transfer to a foreign financial institution$30.00
Cheque, pre-authorized debit or other payment item drawn on an Account that is returned for insufficient funds (NSF)$30.00
If your Account goes into overdraft$5.00
If a cheque drawn on another financial institution is deposited to your Account but is not honoured by that other financial institution$7.50
Stop Payment with complete information, for a single cheque or a range of cheques$10.00
Stop Payment with incomplete information (per item)$20.00
Copies of Past Account Statements (per copy)$5.00
Transfer TFSA from us to another financial institution$50.00
Inactive accounts (after 2 years)$20.00
Inactive accounts (after 5 years & 9 years)$30.00

 

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