Turbocharged TFSA

Move your TFSA money now for better returns next year.

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6 comments on “Turbocharged TFSA

  1. Interesting to learn that there is a penalty for switching TFSA providers in the same calendar year.

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    • only if you existing contributions added to what you recontribute elsewhere puts you over your allowed limit.

      so if youve only put in 5000, and your eligible for 20,000 you can withdraw and re-contribute penalty free

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  2. If you had your TFSA in a stock market account you can change stocks with no penalty , better than going to another BANK !!! and getting a wonderful 2.55 %

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  3. Well, no there isn't a government/tax penalty for switching TFSA providers in mid-year. It just takes a bit more time and work. As the articles says: "Note: The plan can also be transferred between financial institutions within the same year without penalty by filling out the required forms, but this requires more paperwork and may take several weeks."

    If you *withdraw* from one provider and *contribute* to another provider in the same year, there is a very high tax/government penalty, though.

    It is possible that some TFSA providers charge to transfer funds, but do not charge to withdraw funds. If so, then a year end withdrawal followed by a January 1 contribution to a new provider might be more economical.

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  4. This is really good published article. Such a great yet interesting post. Thank you very much for sharing this useful stuff.

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  5. Ally doesn't have any penalties for transferring out/in your TFSA, but they dropped their rate very low after being acquired by RBC. I'm transferring my TFSA to People Trust (3%. non-promotional rate), which also don't charge any fees..it will take several weeks, but it can be done in the middle of the year as long as the request is done by the new institution (in other words, don't withdraw the money yourself!)

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