What is a FHSA account?
A First Home Savings Account (FHSA) is a registered savings account designed to help Canadians save for their first home. The FHSA offers tax benefits to encourage savings, similar to a Registered Retirement Savings Plan (RRSP) and a Tax-Free Savings Account (TFSA).
You can also place free funds on a savings account.
Calculate your future income on a savings account (example):
| Amount, $ | Rate, % | Accrued %, $ |
| 25,000 | 3.25% | 813 |
| 25,000 | 3.35% | 838 |
| 25,000 | 3.45% | 863 |
| 60,000 | 3.75% | 2,250 |
| 60,000 | 3.85% | 2,310 |
| 60,000 | 3.95% | 2,370 |
| 140,000 | 4.25% | 5,950 |
| 140,000 | 4.35% | 6,090 |
| 140,000 | 4.45% | 6,230 |
| 340,000 | 4.75% | 16,150 |
| 340,000 | 4.85% | 16,490 |
| 340,000 | 4.95% | 16,830 |
How do I choose the best FHSA account?
Choosing the best First Home Savings Account (FHSA) in Canada involves evaluating several factors to ensure the account meets your financial goals and offers the best terms. Start by identifying banks, credit unions, and other financial institutions that offer FHSAs. Look for reputable institutions with strong customer service and good reviews.
Check the interest rates offered on cash deposits within the FHSA. Higher rates can help your savings grow faster. Review any fees associated with the account, such as maintenance fees, transaction fees, and investment management fees. Lower fees mean more of your money stays invested.
Different institutions offer varying investment options for FHSAs, including stocks, bonds, mutual funds, ETFs, and GICs. Choose an institution that offers a diverse range of investment options that align with your risk tolerance and investment strategy.
Look for features such as online banking, mobile app access, automated contributions, and easy fund transfers. Some institutions may offer additional tools and resources for first-time homebuyers, such as financial planning services or educational materials.
Ensure the institution adheres to the FHSA rules and limits, such as the annual contribution limit of $8,000 and the lifetime limit of $40,000. Verify how contributions are tracked and reported for tax purposes.
Look for competitive interest rates on cash deposits and consider the potential returns on investment options offered. Lower fees mean more savings for you. Compare the fee structures of different institutions.
You can also see the similar FAQ about Canadian banks at the link:
- B2B bank complaints
- BMO Aggregate Bond Index ETF
- BMO Canadian Equity ETF fund
- BMO Canadian Equity fund
- BMO Canadian dividend ETF
Details of companies offering the financial services:
Scotia iTRADE
Web-site: https://www.scotiaitrade.com/
Bank Of Montreal
Head office’s address: 119, rue Saint-Jacques Montreal, Quebec H2Y 1L6
Contact center: 877-225-5266
Phone: 416-867-5000
Web-site: http://www.bmo.com/main/personal
Swift code: BOFMCAM2
Stock code: BMO
BSB: 001
CIBC
Head office’s address: 199 Bay St, 44th Floor Toronto
Contact center: 800-465-2422
Web-site: https://www.cibc.com/en/personal-banking.html
Swift code: CIBCCATT
Stock code: CM
BSB: 010
RBC Royal Bank
Head office’s address: 200 Bay St, 9th Floor South Tower, Toronto
Contact center: 800-769-2511
Web-site: http://www.rbc.com/canada.html
Swift code: ROYCCAT2
Stock code: RY
BSB: 003
TD Bank
Head office’s address: Toronto-Dominion Centre, Po Box 1 Stn Toronto Dom, Toronto
Contact center: 866-222-3456
Web-site: https://www.td.com/about-tdbfg/our-business/index.jsp
Swift code: TDOMCATTTOR
Stock code: TD
BSB: 004