Scotiabank TFSA Review 2024

ACCOUNT FEATURES	DETAILS
APY	Cash – 0% Savings Accelerator Account (registered TFSA) – 0.650% GICs – 2.25% to 12.50% (guaranteed interest) Mutual Funds – Varies by portfolio
Transaction Fees	$0 (non-redeemable GICs subject to early withdrawal penalties if withdrawn before the term ends)
Monthly Fees	$0
Minimum Balance	$500 (for most registered accounts)
Minimum Deposit	$500 or $5,000 (on some GICs)

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Scotiabank GICs follow the same rules as all GICs, no matter the financial institution, as set out by the CRA. All TFSAs allow you to make deposits and withdrawals tax-free up to an annual contribution limit. Scotiabank lays out these limits in the chart below:

YEAR	AMOUNT	LIFETIME LIMIT
2025	$7,000	$102,000
2024	$7,000	$95,000
2023	$6,500	$88,000
2022	$6,000	$81,500
2021	$6,000	$75,500

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The annual contribution limits are the same regardless of the financial institution where you open a TFSA. Scotiabank does offer some interest-generating opportunities depending on the investment vehicle you decide to put in your TFSA. They also offer a Scotiabank Accelerator Savings Account, which has a registered version, meaning you can open a TFSA that has all the same perks that come with the regular Savings Accelerator Account, including its 0.650% interest rate on deposits, which will then apply to your TFSA deposits. See the full, more detailed list of investment options for your Scotiabank TFSA in the next section.

• Scotiabank Savings Accelerator Account. In addition to the 0.650% interest rate, the TFSA version of the Accelerator Savings Account is identical to the non-registered version in that it offers no monthly fees, no transfer fees when you move your account balance to your other Scotiabank accounts, the ability to make preauthorized contributions and quarterly investment portfolio statements. A Non-registered Savings Accelerator Account gives you a higher interest rate the higher your balance. However, the registered TFSA version gives you 0.650% interest, no matter your balance.
• GICs. You can also place registered Guaranteed Investment Certificates (GICs) into your TFSA and earn more interest on your tax-free contributions. Scotiabank offers non-redeemable, redeemable, cashable, market-linked and guaranteed income optimizers that offer guaranteed payments regardless of market conditions or interest rate fluctuations. The available terms range from 30 days to 10 years, and interest rates range from 2.25% to 12.50%, depending on the GIC you select.
• Mutual Funds. You can also put mutual funds from Scotiabank into your TFSA. Scotiabank has a variety of mutual fund portfolios to choose from, including equity-based portfolios, environmentally-conscious portfolios, index funds, bond funds and dividend funds, each with their own risk class, from low to high, and their fees and MER costs.

A Scotiabank TFSA, like any TFSA, has various advantages and drawbacks you need to consider.

Pros

• Withdraw and deposit funds tax-free up to the annual contribution limit and the overall lifetime limit
• Earn interest on your balance depending on what investment vehicle you select
• Receive the features of the eligible investment vehicle you put in your TFSA
• Spouses can gift contributions to each other’s TFSAs without affecting their own TFSA contribution room

Cons

• You will pay tax on contributions and withdrawals over the annual and lifetime contribution limits.
• Scotiabank’s Savings Accelerator Account gives you the same interest rate on your TFSA no matter your balance, unlike other registered and non-registered versions of the account.
• Scotiabank’s interest rates for your TFSA are standard for a Big Six Bank and not that high compared to a challenger bank or credit union.
• No spousal or joint TFSAs (you are the sole owner)

This is how a Scotiabank TFSA compares to three other TFSAs available from other financial institutions across Canada.

Scotiabank TFSA Vs. EQ Bank TFSA

The EQ Bank TFSA gives you a 3.00% interest on your TFSA deposits with no fees. This is much higher than the Scotiabank Savings Accelerator registered TFSA interest rate of 0.650% but lower than most GIC interest rates offered by Scotiabank. It should also be noted that Scotiabank offers many more styles of GIC than EQ Bank does, whether cashable, redeemable, market-linked, short-term, long-term or provides guaranteed income. EQ Bank just has a non-redeemable version, but its interest rate is 5.05% for a one-year and 4.75% for a two-year GIC, which is higher than what Scotiabank offers for the same terms. Scotiabank gives you 4.50% for a one-year and 4.10% for a two-year. These are also just two examples, but overall, EQ Bank interest rates beat Scotiabank interest rates on GICs. As for fees, both accounts have no fees, so they match there.

Scotiabank TFSA Vs. CIBC TFSA

Scotiabank and CIBC are both Big Six Banks, so their TFSA offerings are similar. The CIBC Tax Advantage Savings Account carries an interest rate that’s only slightly higher than the Scotiabank Savings Accelerator Account at 0.700% compared to the Savings Accelerator’s 0.650%. In addition, if you look at CIBC’s TFSA GIC rates, they are pretty comparable to what Scotiabank offers. For example, a CIBC TFSA Bonus Rate GIC offers 3.75% interest from two to five-year terms, only offering 4.00% for a one-year GIC. Scotiabank beats CIBC on GIC interest rates at 4.50% for one year and 4.10% for two. CIBC does beat Scotiabank on its Flexible GIC, which allows you to cash out any time over a one-year term for a promotional rate of 3.5% interest and a posted rate of 3.25%. Scotiabank’s Cashable GIC only offers 3.0% for a one-year term and is cashable after 30 days. CIBC also doesn’t have as many types of TFSA GICs or term options as Scotiabank, though it’s close.

Scotiabank TFSA Vs. Tangerine TFSA

Scotiabank owns Tangerine, so it’s important to compare their TFSA offerings. Right off the bat, the Savings Accelerator Account from Scotiabank, which can include a TFSA, beats the Tangerine TFSA interest rate. Tangerine’s TFSA offers 0.60%, while Scotiabank’s Savings Accelerator offers 0.650% when paired with a TFSA. Both carry no fees and the TFSA GIC rates from Tangerine go up to 4.65% for 270 days (approximately eight months). Tangerine’s one-year GIC beats its parent over the same term at 4.5% (compared to 4.0%), but Tangerine’s two-year GIC is 3.65%, which is lower than the 4.10% offered by Scotiabank. Obviously, these rates are subject to change, but if you want a basic TFSA GIC with a higher rate, compared to more GIC options at potentially slightly lower rates, go with Tangerine.

To create this list, Forbes Advisor Canada analyzed 11 tax-free savings accounts at 39 financial institutions, including a mix of traditional brick-and-mortar banks, online banks, and credit unions. We ranked each account on 17 data points in the categories of fees, access, customer experience, digital experience, annual percentage yield, and the minimums and balances needed to avoid monthly fees.

The following is the weighting assigned to each category:

• Fees: 50%
• Branch and ATM access: 15%
• Customer experience: 10%
• Digital experience: 10%
• Minimums: 10%
• Balance to avoid monthly fee: 5%

Specific characteristics taken into consideration within each category included monthly fee, ability to waive the monthly fee, overdraft fee, NSF fee, other fees, ATM network, branch access, Better Business Bureau rating, Trustpilot rating, live chat availability, mobile app ratings, online bill pay availability, online banking access, minimum deposit requirements and minimum balance requirements.

Chequing accounts offering no or very low fees scored the highest, as did those offering low minimum requirements and high customer service and digital experience scores. To appear on this list, the chequing account must be nationally available.