Tax-Free Term Deposits | HSBC Canada

TFSA Term Deposits

Choose a risk-free HSBC TFSA Term Deposit

Invest your money at a competitive rate knowing your interest is guaranteed – and that you can access your principal if you need to before the end of your investment term.1 Best of all, your savings grow faster because you earn interest tax-free.2

Is a TFSA Term Deposit right for you?

HSBC TFSA Term Deposits may be an ideal investment option if you:

  • Prefer a secure, tax-free fixed-term investment with guaranteed interest
  • Want your money to grow faster than in a regular savings account
  • Want the flexibility to access your money at any time
  • Have a minimum of $1,000 to invest

Features and benefits

  • Save faster
    The income earned on your investment isn't taxed.2 That can make a big difference to how much – and how fast – you can save
  • Plan for the future
    You know what your returns will be over time, which makes savings for a specific goal easier
  • Access your money when you need it
    HSBC TFSA Term Deposits are redeemable prior to maturity1
  • Choose from a range of short-term and long-term options
    Terms range from 30 days to 5 years. No matter what your savings goals, short term or long term, you'll find a term that suits your needs
  • Choose your interest payment option
    You earn daily interest that is paid out depending on your term.

    With a $1,000 minimum deposit and a 1- to 5-year term, you can choose interest to be paid either semi-annually or annually.

    With a $5,000 minimum deposit, you can choose to have:
    • Interest paid monthly on 90-day to 5-year terms
    • Interest paid at maturity on 30-day to 270-day terms
  • Renew automatically3
    You can select a renewal option when opening your TFSA Term Deposit. If you don't notify us before maturity, we will automatically re-invest your deposit (including any interest earned) at the prevailing, posted rate (certain restrictions apply3)
  • Protection for your deposits
    TFSA Term Deposits are eligible for CDIC insurance

Check today's rates to see how fast your money can grow

1 Redeemable prior to maturity with no interest paid.

2 Only Canadian residents, who are over 18 years of age and have a valid Social Insurance Number, can make contributions to a Tax-Free Savings Account (TFSA). The age of majority is 19 for residents of Newfoundland & Labrador, New Brunswick, Nova Scotia, British Columbia, Northwest Territories, Yukon and Nunavut, which may delay the opening of a TFSA. However, the accumulation of contribution room will start at age 18. Annual contributions to TFSAs are subject to specific limits. Generally, the maximum contribution room for a year is equal to the total of unused TFSA contribution room from previous years, distributions (withdrawals) from TFSAs made in previous years and the TFSA dollar limit for the year in question. As of 2016, the annual TFSA dollar limit is $5,500 (previous annual limits were $5,000 for 2009 to 2012, $5,500 for 2013 to 2014, and $10,000 for 2015). The maximum annual contribution applies to all of your TFSAs held with HSBC or any other financial institution. The Canada Revenue Agency (CRA) will track your contribution room. The CRA reports this amount to individuals through the “My Account” function on the CRA web site (www.cra.gc.ca/myaccount). Provided that contribution limits are not exceeded and contributions are made while the account holder is a resident of Canada, income earned in a TFSA is generally not subject to Canadian taxes. Taxes of other countries may apply. Excess contributions to your TFSA are subject to taxes, interest and penalties. Unlike an RRSP, any money you contribute to a TFSA will not itself be tax-deductible.

3 You can opt into our automatic renewal option when purchasing your term deposit. If you don't notify us before maturity, we will automatically re-invest your deposit (either the principal only or principal and any interest earned) at the interest rate applicable on the date of renewal, to help maximize the growth of your savings. Consult your HSBC branch regarding any eligibility &/or restrictions with setting up an automatic renewal option on your term deposit(s).

The content herein is not intended to provide specific tax advice and should not be relied upon in this regard. HSBC makes no guarantee, representation, or warranty and accepts no responsibility or liability as to the tax treatment of these services. For full details about TFSAs and how they relate to your own income tax and financial situation, please consult your personal tax advisor.

Canadian Deposit Insurance Corporation
Some HSBC accounts and deposit products up to certain dollar amounts are eligible for insurance under the Canada Deposit Insurance Corporation Act (CDIC). Learn more about CDIC and how CDIC Deposit Insurance works:
• Visit http://www.cdic.ca/home/Pages/default.aspx
• Read "Protecting Your Deposits." Visit CDIC to download a copy.
Please note some products, such as foreign currency accounts, are not eligible for CDIC Deposit Insurance.

Earn tax-free investment income with a flexible HSBC TFSA Term Deposit

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