What are tax free first-home savings accounts?
Tax-Free First Home Savings Accounts (FHSA) in Canada are a savings vehicle designed to help Canadians save for their first home in a tax-efficient manner. The FHSA is a relatively new account type introduced in Canada to assist first-time homebuyers by combining features of both the Tax-Free Savings Account (TFSA) and the Registered Retirement Savings Plan (RRSP).
You can also place free funds on a savings account.
Calculate your future income on a savings account (example):
| Amount, $ | Rate, % | Accrued %, $ |
| 25,000 | 3.30% | 825 |
| 25,000 | 3.40% | 850 |
| 25,000 | 3.50% | 875 |
| 60,000 | 3.80% | 2,280 |
| 60,000 | 3.90% | 2,340 |
| 60,000 | 4.00% | 2,400 |
| 140,000 | 4.30% | 6,020 |
| 140,000 | 4.40% | 6,160 |
| 140,000 | 4.50% | 6,300 |
| 340,000 | 4.80% | 16,320 |
| 340,000 | 4.90% | 16,660 |
| 340,000 | 5.00% | 17,000 |
What are the tax advantage savings accounts?
There are several tax-advantaged savings accounts designed to help individuals save and invest more effectively by offering tax benefits.
- Tax-Free Savings Account (TFSA). Contributions to a TFSA are not tax-deductible, but investment income earned within the account (including interest, dividends, and capital gains) is tax-free.
- Registered Retirement Savings Plan (RRSP). Contributions to an RRSP are tax-deductible, reducing taxable income in the year they are made. Investment income earned within the account is tax-deferred until withdrawal.
- Registered Education Savings Plan (RESP). Designed to save for a child's post-secondary education. Contributions are not tax-deductible, but investment income grows tax-deferred.
- Registered Disability Savings Plan (RDSP). Designed to provide long-term financial security for individuals with disabilities. Contributions are not tax-deductible, but investment income grows tax-deferred.
Government Grants and Bonds: Eligible for Canada Disability Savings Grant (CDSG) and Canada Disability Savings Bond (CDSB). - First Home Savings Account (FHSA). A new account type designed to help Canadians save for their first home. Combines features of TFSAs and RRSPs, offering tax-free growth and tax-deductible contributions.
Who offers the best high-interest TFSA savings accounts?
The following financial institutions are known for offering competitive high-interest Tax-Free Savings Accounts (TFSAs): EQ Bank, Motive Financial, Oaken Financial, Tangerine, Simplii Financial, Wealth One Bank of Canada, Alterna Bank.
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/
ATB Financial
Head office’s address: 2100, 10020 – 100 Street, Edmonton, Alberta
Contact center: 800-332-8383
Mail address: [email protected]
Web-site: https://www.atb.com
Swift code: ATBRCA6E
Stock code: ATB Financial
BSB: 219
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
EQ Bank
Web-site: https://www.eqbank.ca/
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