This year’s RRSP deadline is March 2 if you want to deduct the contribution(s) on your tax return for 2025. Want to brush up on your RRSP knowledge? Take our RRSP quiz!
Everybody loves a good quiz if the scores are anonymous and it could save you money, right?
TFSA quiz results
Since we launched our TFSA quiz last month, we’ve had over 450 responses. The average score (without counting repeat attempts) is 9.6 out of 11, which makes you a pretty smart bunch!
Here are a few TFSA refresher facts based on which answers were most frequently answered incorrectly:
- The TFSA over-contribution penalty is 1% per month.
- The entire amount of money withdrawn from your TFSA is added back to your contribution room the following calendar year. Your TFSA contribution room at the beginning of the calendar year consists of your unused contribution room, plus the TFSA dollar limit of the current calendar year, plus the amount of any withdrawals from the previous year.
- The CRA My Account portal is not considered reliable when it comes to tracking your TFSA contribution room! The CRA itself states that you should “always verify your contribution room with your financial institution records to avoid over-contribution”.
You can take our TFSA quiz at any time, as many times as you want!
Rate leaders and tiered rates
It has been relatively quiet when it comes to interest rate changes. Current highlights include:
- Highest non-promotional savings account interest rate: 2.85% at Saven Financial (applies to TFSA and RRSP accounts as well)
- Highest promotional savings account interest rate: 4.80% (registered accounts) or 4.70% (non-registered accounts) on new deposits to a Vancity savings account until April 30, 2026
- Highest GIC rate: 3.85% for a 5-year GIC at Achieva Financial
If you’ve got larger amounts to deposit, more financial institutions are starting to offer tiered interest rates. Tangerine, known for its “interest rate lottery” targeted promotions for existing customers, has started to offered targeted tiered rates, although at relatively underwhelming rates (3.00% if you have at least $50,000 to deposit) compared to its normal promotions (the latest one offering between 3.75% and 4.25% on new deposits). Scotiabank is rumoured to be working on a tiered rate savings account with lower rates than at Tangerine. And we reported back in November that Neo Financial is offering a higher savings account interest rate (now 3.00%) than normal if you have more than $20,000 to deposit.
Registered account transfer fees: the end is near?
If you’ve ever transferred a registered account such as a TFSA or RRSP to another financial institution, you’ve probably encountered a transfer fee, especially if you’re transferring away from a big bank. These fees can be up to $150. Some receiving financial institutions will reimburse the fee if your transfer is over a certain threshold.
The proposed upcoming federal budget will outlaw registered account transfer fees. We’ll see if this change becomes official, and hope that your spurned bank doesn’t find another way to get you.
ATM fee reimbursements at EQ Bank: still free (within Canada), but capped
EQ Bank is capping ATM fee reimbursements starting on April 6 to 5 withdrawals per month and up to $5 per withdrawal. Previously, there was no limit to the amount of the reimbursement or the number of times you could claim it.
For most Canadians this new limit won’t be a problem.
EQ’s main competitor in this “free ATM” space is Wealthsimple, which still allows an unlimited number of withdrawals and no limit on the fee that’s reimbursed. Wealthsimple will also reimburse ATM fees internationally, whereas EQ Bank’s reimbursements are limited to withdrawals at Canadian ATMs.
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