Tangerine TFSA review
Get a high interest rate and maximize your savings with a Tangerine Tax-Free Savings Account.
Looking for a flexible savings option with a reputable online bank? Tangerine offers a high return on investment and no fees when you sign up for its Tax-Free Savings Account. These accounts are similar to Tangerine’s everyday savings accounts, except you won’t have to claim the interest you make on your investments at tax-time.
Promotional Interest Rate
Looking for a flexible savings option with a reputable online bank? Tangerine offers a high return on investment and no fees when you sign up for its Tax-Free Savings Account. These accounts are similar to Tangerine‘s everyday savings accounts, except you won’t have to claim the interest you make on your investments at tax-time.
- Interest rate: 0.1%.
- Fee: $0
- Minimum balance: $0
- Automatic savings option: Yes
- Deposit insurance: up to $100,000
What are the benefits of a Tax-Free Savings Account with Tangerine?
Tangerine TFSA‘s offer a full suite of benefits which include:
- High interest rates. You’ll get a higher return on your savings with Tangerine than you will with some of Canada’s “Big Five” banks.
- Gains are tax-free. You won’t be taxed on any interest you earn on your account as long as you stay within the limits of your contribution room.
- Automatic savings. You’ll be able to save more with automatic withdrawals from your bank account using Tangerine‘s Automatic Savings Program (ASP).
- No fees. You won’t have to pay any additional account fees or service charges to maintain your Tangerine TFSA.
- Flexible redemptions. You can move your money between accounts at your leisure, keeping in mind the ways this could affect your TFSA contribution room.
- No minimum deposits. It’s possible to invest as little as $1 in your TFSA since there are no minimum deposit requirements.
- Savings tools. You can utilize Tangerine‘s savings calculator to set financial goals and figure out how long you’ll need to save up for them.
Currently, all Canadians who are 18 years and older can contribute up to $6,000 per year into the combined total of the TFSAs they hold. If you’ve never contributed to a TFSA before, you can deposit as much as $69,500 into your account as of 1 January 2020. Find out more about how much TFSA contribution room you have by checking your most recent Notice of Assessment or by logging into your CRA MyAccount.
What should I watch out for?
While Tangerine TFSAs offer a number of benefits, you should also make sure to keep an eye out for potential drawbacks.
- Lower rates than online competitors. Some of Tangerine‘s online competitors may offer better rates or introductory offers.
- Fees to transfer funds. While you can transfer funds between your Tangerine accounts for no extra fee, you’ll pay $50 to transfer your full balance to another institution.
- No cash deposits. Since Tangerine is an online bank, it won’t allow you to deposit funds in cash.
- Penalties for over-contribution. If you exceed the maximum allowable contribution room for your TFSA, you may have to pay a fee to the CRA until you take the money out.
What should I know before I apply?
To apply for a Tangerine TFSA, you’ll need to meet the following criteria:
- Be a resident of Canada
- Be 18 years of age or older with a valid Social Insurance Number
- Have an email account
How do I open an account?
To open a TFSA savings account with Tangerine, you’ll need to fill out a quick and easy online application. Follow these steps to get started:
- Head to Tangerine’s website to begin the online Tangerine TFSA application.
- Complete the application, which includes providing your name, email address, social insurance number and birth date.
- Create a 6-digit login PIN to sign in to your account.
- Verify your ID by sending a cheque to Tangerine, or by getting your documents verified at Canada Post or a nearby Tangerine Café.
How do I deposit or withdraw money?
One of the only ways to deposit money into your Tangerine account is to use your client card at a participating bank machine. This card is linked to your Tangerine chequing account so any money you deposit will need to be transferred from this account into your TFSA after it’s received. You can also deposit money by sending it to your Tangerine account via e-transfer from another financial institution.
The same process applies for withdrawing money from your account. You’ll need to transfer funds from your Tangerine TFSA to your chequing account to be able to withdraw them. You’ll also want to keep your TFSA contribution room in mind when you withdraw and deposit funds, since you’ll need to make sure you don’t over-contribute to your TFSAs or use up valuable room in them by transferring money in and out.
Which bank machines let me transfer money for free?
You can make deposits and withdrawals for free at any Tangerine ABM and at any Scotiabank Branch ABM. You’ll also be able to withdraw your money for free at over 3,500 ABMs on the Scotiabank® ABM Network including those at 7-Eleven, Quickie convenience stores and Cineplex Theatres. If you’re not sure which ABM to use, you can use Tangerine‘s ABM Locator to find a machine near you.
How can I get in touch with customer service?
To get a hold of Tangerine‘s customer service department, click here. The main customer service line is available 24 hours a day, seven days a week. You can get in touch with them using the following numbers:
- English: 1-888-826-4374 or 416-756-2424
- French: 1-844-826-4374
Customer service can also be accessed through online chat weekdays between 8am and 8pm ET and on weekends from 9am to 5pm ET.
If you’re not overly tech-savvy, you might also want to consider visiting one of Tangerine‘s physical café locations if you’re based in Toronto, Vancouver, Calgary or Montreal.
Tangerine is one of the most reputable online banks in Canada, offering a full suite of financial products to millions of clients each year. Tangerine‘s Tax-Free Savings Account is designed to help you reach your savings goals faster with tax-free gains, high interest rates and no fees. Find out what you’ll need to qualify and learn how you can apply online for this type of account today.Back to top