Tax Free HISA is a high interest savings account provided by Canadian Tire Bank. Since January 1, 2009, Canadian residents, who are 18 years of age or older with a valid SIN, have been eligible to contribute up to $5,000 annually to a Tax Free Savings Account (TFSA). In 2013, the annual contribution limit increased to $5,500. In 2015 this limit was again increased to $10,000 allowing existing and new account holders to contribute up to the new maximum. In 2016, the limit was decreased back to $5,500. In 2019, the limit was increased to $6,000. In 2023, the limit was increased to $6,500. For more information, visit the Canada Revenue Agency (CRA) website.

The current contribution limit is $6,500. For more information, visit the Canada Revenue Agency (CRA) website.

The beginning of the year is the ideal time to make a deposit to maximize your tax savings. By investing early you could earn the most interest tax free for that year.

TFSAs are available to Canadian residents, who are 18 years of age or older with a valid SIN. You cannot open a TFSA or contribute to one until you turn 18. However, when you turn 18, you can contribute up to the full TFSA dollar limit for that year.

NOTE: In certain provinces and territories, the legal age at which an individual can enter into a contract (which would include opening a TFSA) is 19. For example, from 2009 to 2012, in such jurisdictions, an 18-year-old who would be otherwise eligible, would accumulate $5,000 contribution room for that year and carry it over to the following year.

While a RRSP is primarily intended for retirement, the TFSA is for everything else in your life. Both plans offer tax advantages, but they have 2 key differences:

• TFSA withdrawals are not added to your income for tax purposes - they are tax-free. Withdrawals from an RRSP are added to your income and subject to tax.
• Contributions to an RRSP are tax deductible and reduce your income for tax purposes. In contrast, contributions to your TFSA are not tax-deductible.

You can have more than one TFSA. However, it is your responsibility to ensure that your total contributions do not exceed your contribution room in a given tax year. You should check with the CRA to determine your exact contribution limit.

It is your responsibility to know what your contribution limit is for a given year. The Canada Revenue Agency (CRA) will track your available contribution room (including unused contribution room that is carried forward) and will report this amount to you as part of your Notice of Assessment that you will receive after filing your previous year's tax return. This information can be impacted by any withdrawals or contributions that you might make, so it is important that you keep track of your activities and available contribution room.

Any unused contribution room from a given tax year will be added to your contribution room for the next year. There is no limit on the number of years that unused contribution room can be carried forward, so your unused contribution room will continue to accumulate until you are able to make contributions.

The CRA will impose a penalty of 1% on the highest excess amount in that month, for each month as long as the excess remains.

If you have more than one TFSA, you can transfer funds between them without affecting your TFSA contribution room, as long as you arrange for the transfer to be done by the two Financial Institutions where the TFSAs are held. This would be considered a qualifying transfer and would have no tax consequences. If the transfer is not done directly by your Financial Institutions, that is, if you withdraw the funds from one TFSA and deposit those funds on your own with another Financial Institution, your deposit will be considered a separate contribution that will reduce, and may even exceed, your TFSA contribution room for the year. As a result, you may be subject to a penalty on the excess contributions. Please also note that some Financial Institutions charge a fee when transferring assets. In the case of Canadian Tire Bank, we charge a fee of $50 when you transfer your TFSA to another Financial Institution. If you wish to transfer a Canadian Tire Tax Free GIC, additional conditions may apply. See the answer to question #19 for further details.

Withdrawals reduce your available contribution room in the year of the withdrawal by the amount of the withdrawal. However, your contribution room is not lost - your withdrawal amount will be added to your contribution room for the following year. So, you can re-contribute amounts that you withdraw from your TFSA, but you have to wait until the following year to do so.

No. Government rules only permit individual accounts.

The designation of a successor holder or beneficiary is currently available in all provinces/territories except Quebec and Nunavut.
If you would like to designate a successor holder or beneficiary on your Tax Free Savings Account (TFSA), please download, complete and sign a Tax Free Savings Account Successor Holder and Beneficiary Designation form and mail it to:

Canadian Tire Bank,
PO Box 3000, STN Main
Welland, ON L3B 5S5

To apply, you'll need:

• Your Social Insurance Number (SIN). Note: The CRA requires that your SIN be collected as part of the TFSA application process so that they can provide you with your annual TFSA contribution room as part of your T1 Notice of Assessment.
• A completed Direct Transfer Authorization Form (DTA Form), including the amount of your initial deposit. This form will be provided to you in your Instruction package.
• A completed Declaration of Tax Residence for Individuals form. This form will be provided to you in your Instruction package.

Once your linked external account is set up, you may transfer funds online or by calling one of our customer service representatives at 1-866-681-CTFS (2837) between the hours of 8 AM and 6 PM ET Monday to Friday. If you would like to transfer your TFSA from us to another Financial Institution, a $50 fee applies. If you wish to transfer a Canadian Tire Tax Free GIC, additional conditions may apply.

Yes. However, if you are already an existing customer in another savings product, applying for a Tax Free HISA will be even easier since we already have your information on hand. Government regulations require that you agree to the terms and conditions before opening your account. Just call 1-866-681-CTFS (2837) and one of our customer service representatives will have your Tax Free HISA set up for you in no time!

There is NO minimum deposit required for a Tax Free HISA. There is a minimum deposit of $1,000 required for a Canadian Tire Tax Free GIC.

Of course! You can make withdrawals anytime you want via phone or online banking. Just remember, withdrawals reduce your available contribution room in the year of the withdrawal by the amount of the withdrawal. However, your contribution room is not lost - your withdrawal amount will be added to your contribution room for the following year. So, you can re-contribute amounts that you withdraw from your TFSA, but you have to wait until the following year to do so. If you have a non-redeemable GIC, you may not redeem your GIC prior to its maturity, but if you die while holding your GIC in your own name (and not jointly) or if you move to Quebec or outside Canada, then your GIC will be terminated and you will receive interest only up to the date of termination. If you hold your GIC in a TFSA and in order to obtain a refund of an overcontribution to the TFSA, you must redeem the GIC, or if you wish to transfer all or part of your GIC to another TFSA, then in either case you will forfeit all interest that has accrued on the GIC.

Your deposits are eligible for up to $100,000 in CDIC insurance coverage.

You can apply online, or call us at 1-866-681-CTFS (2837).

To make a deposit to an account, simply go online at ctfs.com/account.

Yes, there is a $50 transfer fee for transferring your TFSA from us to another Financial Institution. In addition the products that you hold within a TFSA may have charges. In the case of a High Interest Savings Account the following charges apply:

For Inactive Accounts:

• after 2 years, the lesser of the balance or $20.00. Waived if balance is greater than $20.00
• after 5 years, the lesser of the balance or $30.00. Waived if balance is greater than $30.00
• after 9 years, the lesser of the balance or $40.00. Waived if balance is greater than $40.00