Canadian High Interest Savings Bank Accounts

On questtrade, they offer a tax free trading account (TFTA). Its like a tax free savings account (TFSA) but you can trade equities with it.

What I want to do is setup a TFSA at say ING or some online bank, deposit $5000 in there and link that account to a TFTA at Questtrade.

I want to then move some portion of my money in the TFSA into TFTA to invest in equities. When I've made my profit, I want to cash out and move it back to the TFSA. I want to do this many times in one year.

Is this OK under the TFSA rules or will I be peanalised/fined?

I've read that I can "transfer" TFSA from one institution to another and I can have more than one TFSA. What exactly is involved in this transfer? Can I just do it as easily as I move money from say a PC Financial savings account to an ICICI savings account? Or do I have to fill a bunch of forms and other stuff which makes it impractical.

Again I want to be able to move the money easily back and forth between the TFSA and TFTA without incurring a penalty and without having to fill a bunch of transfer forms. Is this possible. I called the CRA but they are clueless. They did not even know what a TFTA is.

If anyone knows for CERTAIN (please don't throw in your 2 cents if you don't), please put in your reply. Thanks!

Horn swoggler

Thank you very much for the reply Scone.

That clears things up for me.

The money market fund idea is a good one. I wanted some place to park the funds earning interest while I figured out what stock to stick it in next.

I also wanted someone to be able to easily access my TFTA funds if i died unexpectedly. Hence I wondered if they could just transfer the amount to ING where they can access it easily. But apparently moving any money between TFTA/TFSAs sound like a hassel and a needless expense.

I think I'll just stick to investing in a regular TFSA at ING and do my equity trading outside of it to avoid the hassels of getting my money out of an online brokerage.