Tax-free accounts
How to Transfer a TFSA to Another Bank in Canada
To move a TFSA without affecting your contribution room, ask the new institution for a direct transfer. Why you should never withdraw and re-deposit it yourself, plus fees and timing.
How do I transfer my TFSA?
Open a TFSA at the new bank or broker, then ask them to request a direct transfer from your current institution. You sign a transfer form; the institutions move the money or investments between them.
Transfers often take one to a few weeks. Investments can move “in kind” if the new institution can hold them; otherwise they are sold first.
Put it into practiceBest TFSA savings accountsDoes a TFSA transfer affect my contribution room?
No. A direct transfer between your own TFSAs is not a withdrawal or a contribution, so your room is unchanged and there is no tax.
Why not just withdraw the money and deposit it at the new bank?
Because the deposit counts as a new contribution. If it is more than your available room, the excess is taxed at 1% per month. The withdrawal only comes back as room on January 1 of the next year.
Example: you have $0 of room left and withdraw $10,000 to deposit elsewhere the same year. That is a $10,000 over-contribution, costing $100 a month until it is removed.
Are there fees?
Some institutions charge a transfer-out fee; check your current institution’s fee schedule. Some receiving institutions will cover it on request, especially for larger transfers, so ask before you start.
What about GICs in my TFSA?
Non-redeemable GICs usually cannot be transferred until they mature. You can transfer the rest now and the GIC later, or wait until it matures.
Keep reading
Tax-free accountsCan You Have More Than One TFSA in Canada?Yes. You can hold TFSAs at several banks and brokers, but your contribution room is shared across all of them: the 2026 limit is $7,000 in total, not per account. How to move money between them without overcontributing.
Tax-free accountsHow to Close a TFSA in CanadaYou can close a TFSA at any time by withdrawing everything and asking your institution to close the account. No tax applies, and the room comes back next year. When a transfer is the better choice.
BankingBest TFSA Savings Accounts and GIC Rates in CanadaWhere to keep cash in a TFSA: the best savings and GIC rates we track (2.80% savings, 3.75% for a 1-year GIC), how much your TFSA would earn, and what to check before you open one.- Tax-free accountsTFSA Withdrawal Rules in CanadaTFSA withdrawals are tax-free and can be made at any time, but the room only comes back on January 1 of the next year. How to withdraw without creating an overcontribution.
Official sources and further reading
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