September 1, 2012
November 7, 2014
November 7, 2014
You should note the differences between the regular high interest savings account at Accelerate and the TFSA:
Regular savings: Interest calculated on the daily closing balance and paid the last day of each month
TFSA: Interest calculated on the daily closing balance and paid annually on December 31
Don't know too many people who, knowing how TFSA deposits and withdrawals work, would want to have interest just paid annually, on January 1 of the next year. If one wanted to make a withdrawal from a TFSA, for example to move it to another TFSA, the best time is in late December so that you can redeposit it in January.
Wonder how many people think the Accelerate HISA and TFSA work the same way. Fine print reading is important.
May 24, 2016
October 21, 2013
My hat is also off to gicjunkie!
That is so sleazy that I am shocked - and from a credit union, no less, that supposedly puts its members interests first.
Paying annually not only makes it more difficult to move the TFSA; it also gives you slightly less interest than the posted rate because there is no monthly compounding.
Possible workaround for those who are already stuck there might be to transfer the account in December as you wish, leaving perhaps a few dollars in it to keep it open if required. They will still owe you the interest for the year, as it is calculated on the daily closing balance. On January 1, or as soon as the interest is deposited, cash out the account. Redeposit the interest somewhere else the following January. You would lose a little bit on the lack of TFSA protection for that interest for one year, but not too big of a penalty to get out of there! I think that should work but haven't read the fine print.