TFSA FAQs

Can I only open one TFSA account?

No, you can open as many TFSA accounts with as many financial institutions as you wish. However, you need to make sure that the combined funds that you have with all the banks does not exceed your contribution limit. Otherwise you will incur a penalty.

For example, with the contribution limit in 2009 being $5000, if you decided to open two accounts and have deposited $2800 in “Bank A”, then in “Bank B” the maximum you can contribute is $2200 for the year.

What is the excess/over contribution penalty rate?

You will have to pay a penalty of 1% every month for any excess funds in your TFSA accounts that exceed your contribution limitation. For example, if the limit is $5000/month and one month you invest another $200 still then you will have to pay a 1% penalty on that $200 which in this case means $2.

If you have more questions, feel free to use the contact form and hopefully we can build a comprehensive list to answer everyone’s tax free savings account questions.