The Big 6 Banks
- November 20th, 2023: CIBC now offers FHSA accounts.
- Fall 2023: BMO is now offering FHSA accounts, making CIBC the last of the Big 6 Banks to offer an FHSA account.
- Summer 2023: TD Bank and Scotiabank have started offering FHSA accounts via appointments.
- April 21st, 2023: Royal Bank of Canada (RBC) have begun offering FHSA via their investment accounts.
- April 17th, 2023: FHSA accounts are now available at National Bank via appointments.
| Banks | Is FHSA Available Yet? | When Was FHSA Made Available? |
|---|---|---|
|
TD (Toronto-Dominion Bank) |
Yes. Book an appointment here. | Summer 2023 |
|
RBC (Royal Bank of Canada) |
Yes. Accounts can be opened here. | April 21st, 2023 |
|
Scotiabank (Bank of Nova Scotia) |
Yes. Book an appointment here. | Summer 2023 |
|
BMO (Bank of Montréal) |
Yes. Book an appointment here. | Fall 2023 |
|
CIBC (Canadian Imperial Bank of Commerce) |
Yes. Get started here. | November 20th, 2023 |
| National Bank of Canada | Yes. Available here. | April 17th, 2023 |
Online Brokers
- August 3rd, 2023: Wealthsimple has officially released their FHSA accounts. More info here.
- July 5th, 2023: Wealthsimple confirmed on Twitter that FHSA will be launched in the summer, but some users have been invited for early access. More details here.
- April 19th, 2023: Fidelity have begun offering FHSA accounts.
- April 1st, 2023: Questrade is the only online broker to have offered FHSA accounts so far.
| Banks | Is FHSA Available Yet? | When Will FHSA Be Available? |
|---|---|---|
| Wealthsimple | Yes. Visit this page to open an account. | Available as of August 3rd, 2023. More info here. |
| Questrade | Yes. Accounts can be opened online. | Available as of April 1st, 2023 |
| Fidelity | Yes. Accounts can be opened here. | Available as of April 19th, 2023 |
|
IBKR (Interactive Brokers) |
Not yet. There is no indication that IBKR will offer FHSA accounts anytime soon. | No info yet |
Other Banks and Financial Institutions
On July 19th, 2023, EQ Bank launched the FHSA in the form of:
- A savings account (3.00% interest), and
- GICs of various terms (5.50% for a 1-year deposit)
| Banks | Is FHSA Available Yet? | When Will FHSA Be Available? |
|---|---|---|
|
EQ Bank (Equitable Bank) |
Yes, in the form of a savings account (3.00% interest) and GICs of various terms (5.50% interest for 1 year) | Available as of July 19th, 2023 |
| Canadian Western Bank | Not yet. It appears that FHSA accounts will be offered under CWB Trust Services | No info yet |
| Motive Financial | Not yet. There is no indication that Motive Financial will offer FHSA accounts anytime soon. | No info yet |
| Desjardins | Yes. Available here. Introductory promotional rate of 5.00% available as of September 1st, 2023 | Available in Summer 2023 |
| ATB Financial | Yes. Connect with an ATB Wealth Expert here. | Available in Fall 2023 |
| Tangerine | Not yet. There is no indication that Tangerine will offer FHSA accounts anytime soon. | No info yet |
Not sure what an FHSA is? Here are more info to help you get started.
What is an FHSA?
Let's go straight into an example to illustrate the benefit of having a FHSA account.
Say you open a FHSA account, and:
- If you contribute $8,000 into the FHSA and it grows to $10,000 in the next few years, the $2,000 you earn will be tax-free.
- If you make $50,000 this year and you contribute $8,000 into an FHSA this year, you are able to deduct it and pay taxes on your income as if you only made $42,000.
This is an oversimplification, but it's a headstart in understanding what an FHSA is.
If you know already what a TFSA (Tax-Free Savings Account) and an RRSP (Registered Retirement Savings Plan) are, then an First Home Savings Account (FHSA) combines the best features from the both of them:
- Like a TFSA, the growth in an FHSA is tax-free (see 1 above).
- Like an RRSP, the contributions to an FHSA is tax-deductible (see 2 above).
Can you lose money in an FHSA?
If you use the money inside an FHSA to purchase stocks, ETFs, mutual funds, or bonds, its value will decrease or increase based on their performance.
If you use the money inside an FHSA to buy Guaranteed Investment Certificates (GICs), its value will generally increase depending on the interest rate offered by your financial institution.
Is there a limit on how much you can contribute into a FHSA?
Yes. The limit per year is $8,000.
Can you have more than one FHSA account?
Yes. But keep in mind that you should not contribute more than $8,000 annually across all of your FHSA accounts.
What happens if you overcontribute to a FHSA?
Like a TFSA, there is a penalty of 1% charged on the excess of your contribution per month.
Your Turn
I will update this webpage periodically as more financial institutions offer FHSA accounts. Feel free to save the page as a bookmark!