New year, new TFSA contribution room
If you turn 18 or older this year, you received an additional $6,000 of TFSA contribution room on January 1, 2020. Remember that you can use a TFSA for investments other than a savings account. If you choose to use a savings account, there is no shortage of financial institutions with short-term TFSA promotions to start the year. Be sure to take into account what the regular interest rate is after the promo has expired, as well as any transfer-out fees should you wish to move your money elsewhere. Compare these offers against the regular rates on our comparison chart. If you decide to leave your money in the account all year, you might be better off forgoing a higher promo rate in favour of a decent regular rate.
For example, CIBC has a 2.75% TFSA promo until March 31, 2020. After the promo period has ended, the regular rate is 1.00%. That averages out to less than 1.50% in interest if you leave your money in for the entire year, which is worse than the regular rate for all of the financial institutions on our chart. There is also a $100 transfer-out fee should you wish to directly transfer your TFSA funds to another financial institution.
The first 60 days of 2020 also represent your last chance to apply RRSP contributions against your 2019 tax return, and some of the TFSA promos (including the CIBC one mentioned above) also apply to RRSPs.
Manulife Bank is offering 3.00% in a TFSA or RRSP until April 30, 2020 on new deposits made before March 13, 2020. Its regular rate is 1.20% and it currently has no transfer-out fee.
Meridian Credit Union has a 1% bonus promo for transfers (minimum $10,000) from other financial institutions into an RRSP or TFSA, which can stack with a 3.00% offer for 4 months in your first account. Its regular rate is 1.30% and it has a $75 transfer-out fee.
If you’re an existing Tangerine customer, its next round of targeted promos has been reported as being between 2.50% and 2.75% on new deposits made between January 6 and May 31, 2020. New clients can get 2.75% for 5 months. Both of these offers apply to regular savings accounts, TFSAs, RRSPs, RRIFs, and US dollar savings accounts. Tangerine’s regular interest rate for the regular savings account, RRSP, and TFSA is 1.05%, and there is a $50 transfer-out fee for registered accounts.
LBC Digital is the only widely available 3.30% savings account remaining
After only a few months, B2B Bank’s 3.30% savings accounts can no longer be opened directly by consumers, and requires a relationship with a financial advisor or deposit broker. However, LBC Digital still remains available to everybody with the same 3.30% savings account interest rate. How long this rate will last remains to be seen!
Take your pick for GICs
There is no shortage of other GIC promos elsewhere (especially at Ontario Credit Unions), including:
- RCU Credit Union (Ontario only), with a 2.80% 1-year GIC
- Parama Credit Union (Ontario only), with a 2.75% 1-year GIC
- Omnia Direct (Ontario only), with a 2.60% 1-year GIC, a 2.70% 2-year GIC, and a 2.80% 5-year GIC
- Ganaraska Credit Union (Ontario only), with a 3.00% 3-year GIC
- DUCA Credit Union (Ontario only), with a 3.00% 5-year cashable GIC
- Weyburn Credit Union (Saskatchewan only), with a 3.35% 54-month (4.5 years) GIC
Check out our continuously updated promotions page for more!
Cash back and more news
- Meridian Credit Union and motusbank now have a Price Drop feature in their mobile apps, where you submit receipts and they alert you (and sometimes refund the price difference) if your purchase is cheaper elsewhere
- $110 cash back (for the rest of January from High Interest Savings), and 10% cash back on all purchases for the first 3 months with the Scotiabank Momentum Visa Infinite Card
- $45 cash back (for the rest of January from High Interest Savings) and 4% in Money-Back rewards in up to 3 categories for the first 3 months with the Tangerine World Mastercard and Tangerine Money-Back Credit Card