Plan carefully to avoid excess contributions
If you do end up overcontributing to your TFSA, know that the CRA charges a penalty tax of 1% per month on the excess for as long as it’s in the TFSA. Keep track of your contributions throughout the year to avoid going over your limit. (Unlike with RRSPs, there is no $2,000 buffer for TFSA overcontributions.) If you make auto-deposits, it’s worth it to do the math and figure out your annual contribution total and how it stacks against your contribution room.
One thing that often trips up TFSA holders: if you withdraw funds from your TFSA, you can only replace them within the same calendar year if you have unused contribution room. If you don’t have room, the recontribution will be viewed as an excess contribution, and you’ll have to pay the 1% tax on the excess amount until you remove it.
How to open an EQ Bank TFSA Savings Account
Opening a TFSA at EQ Bank is simple, and the process is completely digital. The account has no minimum balance or monthly fees. It also pays 2% interest on your savings. (Interest is calculated daily on the total closing balance and paid monthly.)Plus, you’ll receive a 2% match (also tax-free) on new deposits made by Feb. 28, 2025.
Here’s how to open your TFSA at EQ Bank:
Log in or open your EQ Bank account in a few clicks.
Head to “Products,” scroll to TFSA and open an account.
Fund your account and start earning 2.00% interest on every dollar.
EQ Bank also offers registered guaranteed investment certificates (GICs), with terms ranging from three months to 10 years, for its registered accounts, including the TFSA, registered retirement savings plan (RRSP) and first home savings account (FHSA).
Don’t miss out on bonus TFSA growth
Earning interest inside a TFSA can give your savings a big boost over time, thanks to the power of compounding—and even more so if you get extra interest on your deposits up front. Open an EQ Bank TFSA Savings Account today and watch your savings grow.
About the survey
These findings are from a survey conducted by EQ Bank from Jan. 8 to 10, 2025, among a sample of 1,515 online Canadians who are members of the Angus Reid Forum. The survey was conducted in English and French. For comparison purposes only, a probability sample of this size would carry a margin of error of +/-4.4 percentage points, 19 times out of 20.
This article is sponsored.
This is a paid post that is informative but also may feature a client’s product or service. These posts are written, edited and produced by MoneySense with assigned freelancers.
Get free MoneySense financial tips, news & advice in your inbox.
More about saving:
About Jaclyn Law
Jaclyn Law is MoneySense’s managing editor. She has worked in Canadian media for over 20 years, including editor roles at Chatelaine and Abilities. Jaclyn completed the Canadian Securities Course in 2022.
GIPHY App Key not set. Please check settings