The Big 5 Banks
- On April 21st, 2023: Royal Bank of Canada (RBC) have begun offering FHSA via their investment accounts.
- As of April 17th, 2023: None of the Big 5 Banks have offered any FHSA accounts yet.
| Banks | Is FHSA Available Yet? | When Will FHSA Be Available? |
|
TD (Toronto-Dominion Bank) |
Not yet |
Later in 2023 (source: Yahoo) |
| RBC (Royal Bank of Canada) |
Yes. Accounts can be opened here via RBC Direct Investing, RBC InvestEase, or via an appointment at 1-800-769-2563. |
Available as of April 24th, 2023 |
|
Scotiabank (Bank of Nova Scotia) |
Not yet | No info yet |
|
BMO (Bank of Montréal) |
Not yet |
Mid-2023 (source: BMO) |
|
CIBC (Canadian Imperial Bank of Commerce) |
Not yet |
End of 2023 (source: CIBC) |
Online Brokers
- On April 1st, 2023: Questrade is the only online broker to have offered FHSA accounts so far.
- On April 19th, 2023: Fidelity began offering FHSA accounts as well.
| Brokers | Is FHSA Available Yet? | When Will FHSA Be Available? |
| Wealthsimple | Not yet | No info yet, sign up to be notified here |
| Questrade | Yes. Accounts can be opened online. | Available as of April 1st, 2023 |
| Fidelity | Yes. Accounts can be opened here or here. | Available as of April 19th, 2023 |
| IBKR (Interactive Brokers) | Not yet | No info yet |
Other Banks and Financial Insitutions
- On April 17th, 2023: FHSA accounts are now available at National Bank via appointments.
| Other Banks and Financial Institutions | Is FHSA Available Yet? | When Will FHSA Be Available? |
| National Bank of Canada | Yes, via appointments. |
Available as of April 17th, 2023. Brokerage FHSA accounts will be available in fall 2023. (source: NBDB) |
|
EQ Bank (Equitable Bank) |
Not yet |
April 22nd, 2023: Waitlist form available here ————— March 22nd, 2023: No info yet (source: Twitter) |
| Canadian Western Bank | Not yet | No info yet |
| Motive Financial | Not yet | No info yet |
| Desjardins | Not yet |
Summer 2023 (source: Desjardins) |
| ATB Financial | Not yet | No info yet |
| Tangerine | Not yet | 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 bookmark it!
More Money Stuff 🇨🇦
- Beat the Bank: The Canadian Guide to Simply Successful Investing
- Tax-Free Savings Account: A Guide to TFSAs and How They Can Make You Rich
