RBC TFSA Rate at 1.0%

As of checking today the rate for RBC seems to be at the pretty common rate of 1%.

rbcrate2014

PC Financial Rate At 1.4%

I was looking at the annual interest rate for PC Financial’s Tax free Interest Plus Savings Account and by the look of it the rate is currently sitting at 1.4%.  haven’t seen any special promotions as of yet even though it seems like a lot of the other big banks are gearing up for the tax season.

 

pcfinancialratee2014

CIBC Special 2% Interest Rate On New Balances

Looks like CIBC is offering TFSA investors a 2% interest rate on new balances until March 31, 2014.  I must say though, that fee of $100 to transfer your funds from a different bank must make it very unappealing for anyone to switch if the goal of this promotion is to try and convince people to switch over.

 

cibc2014promo

Bank of Montreal Offering A Special 1.8% Interest Rate

It appears that the Bank of Montreal is having a promotion where until March 31, 2014 they will be giving people an additional 0.8% interest rate on new funds deposited into the account.

bmo2014promo

ING Direct Goes To 3% For The New Years

Happy new years everyone! This was kind of a good change as I saw today that ING Direct has decided to increase its tax free savings account rate to 3%.

As indicated on the fine print too, “Rate as at January 1, 2010 and (like the weather) is subject to change. Interest is calculated daily and paid monthly.” This is currently the highest interest rate offered to my knowledge though. Not a bad way to start 2010.

Free $50 Fee Credit For Transferring Your TFSA To Ally

I was just sent this e-mail about an offer from a financial institution called Ally. From what I read, they are offering TFSA account holders with other banks up to $50 to switch to them in order for you to recoup any transferring fees that your bank may charge for the switch.

I suppose the biggest incentive is that if you were thinking of switching it looks like they offer one of the highest interest rates at 2% atthe moment. I have personally never tried this company myself. However, I figured there are probably a lot of people that are looking for options and this may be one of them.

I’m not sure if someone in-the-know wants to clarify this too, but to my understanding the $50 is to simply recoup any transferring fees as opposed to simply getting a free $50 for transferring the account.

Apparently the offer ends at the end of this month:
http://learn.ally.ca/transfer/

Government Proposed Changes To TFSA Accounts

There hasn’t been too much news and happenings when it comes to tax free savings accounts since its launch. I would say the highlights would be how the interest rates took a huge dive which kind of killed the excitement of it for many.

However, I was just browsing around and reading a piece about the government of Canada proposing to add the following amendments to the income tax act in regards to how TFSA’s work:

-Make any income attributable to deliberate overcontributions and prohibited investments subject to existing anti-avoidance rules in the Income Tax Act.

-Make any income attributable to non-qualified investments taxable at regular income tax rates.

– Ensure that withdrawals of deliberate overcontributions, prohibited investments, non-qualified investments or amounts attributable to swap transactions, or of related investment income, from a TFSA do not create additional TFSA contribution room.

– Effectively prohibit asset transfer transactions between TFSAs and other accounts.

I suppose it is a direct attempt to prevent intentional abuse of the plan where one can avoid paying income taxes on their investments. An example would be someone intentionally over contributing to their account where the investment would then generate more money than the actual 1% penalty fee you would have to pay.

This doesn’t really affect the average person though that simply uses the account more as a savings account. Basically, I’m sure most people just want higher interest rates.