How to Transfer Your TFSA to Another Financial Institution

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Have you ever wondered how to transfer your TFSA to another financial institution? Just like transferring your RRSP, it’s a simple process, but due to contribution limits, there are a few other things to consider when moving your Tax-Free Savings Account.

To be clear, there are no tax consequences if you’re transferring your funds from one TFSA to another, but it needs to be done via a direct transfer initiated by the financial institution where your new TFSA is held. Since there is more than one way to transfer your TFSA, I’m going to outline what you want to do to ensure your TFSA transfer is done correctly.

How to transfer your TFSA

How to transfer your TFSA

Before you transfer your TFSA, you need to set up a new TFSA account at another financial institution. Many people choose to go with a robo advisor such as JustWealth, Wealthsimple or RBC InvestEase since they offer low fee automated investing. Alternatively, those going the DIY investor route will open an account with a direct brokerage.

Once your account is set up, you need to have the company where your new TFSA is being held request that the funds from your old TFSA be transferred. To do this, they would require you to fill out a TFSA transfer form as well as the info about where your funds are being held. The easiest way to get this information is to provide them with your most recent statement as it would have the details that they need.

As soon as the transfer request is put through, there’s nothing your old financial institution can do. That said, many of them have a TFSA transfer fee, which you’re required to pay. Before you sign up for your new TFSA account, see if they’ll cover the transfer fee. It could also take up to 3-4 weeks for the transfer to complete.

Now that you’ve got your funds in your new TFSA, you can close your old account. If you prefer, you can keep the old account open, as you can have multiple TFSAs, but it’s probably best to close it.

What happens to my funds during the transfer?

What you’re currently invested in will determine what happens to your funds when you request a transfer. Let’s say you’re currently invested in ETFs widely available to the public, such as Vanguard ones. When doing the transfer, you could ask for a transfer in kind which would port everything you have right to your new financial institution. 

For most people, things aren’t that simple. If you’re looking to transfer your TFSA to somewhere else, you’re likely not happy with what you’re invested in now or with your financial advisor. There’s a good chance that your portfolio consists of mutual funds exclusive to your old financial institution. If those funds aren’t available for purchase within your new TFSA, your old TFSA would be sold, and then the cash would be transferred to you. 

This can be a problem for some people as they might be forced to sell at a loss when they don’t want to. There may also be deferred sales charges that would cost you a few percentage points of your portfolio’s current value. You also need to consider any missed opportunities since it may take a few weeks for your money to arrive.

What if you withdraw your TFSA yourself?

It’s not considered a direct transfer when you withdraw your TFSA and then deposited it into another TFSA. This would be a regular contribution, so there may be tax consequences.

How much you pay in taxes depends on how much you’re contributing. Let’s say you want to transfer $30,000 from your current TFSA to a new account, and you have a total contribution room of $69,500. You could withdraw the $30,000 and then immediately deposit it into your new account, and there would be no tax consequences since you’re now at $60,000, which is below your contribution limit. You would also get that $30,000 contribution room back the following year.

If you had $40,000 in your TFSA, you would only be able to withdraw and contribute $29,500 without going over your limit. TFSA rules are quite strict, so you would be charged a 1% tax on the excess amount for each month that you’re over your limit.

The easiest way to check your TFSA contribution room is to log in to your CRA account since it displays your info. That said, the CRA website is famous for not being up to date, so the number you see may be inaccurate. You’re better off logging all of your contributions and withdrawals on your own, so you know precisely how much TFSA contribution room you have left. A good alternative is to use this TFSA Contribution room calculator.

The easiest way to transfer your TFSA

There is one way to transfer your TFSA that only takes a few days, and there are no tax consequences to worry about. However, it requires a bit of timing.

Since you get your contribution room back from any withdrawals done the previous year, you could sell/withdraw all of your funds in late December and then deposit that money into your new TFSA on January 1st. You’d also be able to contribute the additional room you get since it’s a new year.

For people who are currently using a high interest savings account for their TFSA, this won’t be an issue, but if you’re invested in equities, you could still miss out on any potential gains (or losses) for those few days between the transfer. If you’re in a rush, this option is better than waiting for a few weeks.

Final thoughts

People transfer their TFSA for a variety of reasons. They may want to use a better platform; they want to start investing, or they want to lower their management expense ratio. Switching just because your portfolio has not performed as well as you hoped shouldn’t be the driving force behind your decision as past performance is not an indicator of future performance.

About Barry Choi

Barry Choi is a Toronto-based personal finance and travel expert who frequently makes media appearances. His blog Money We Have is one of Canada’s most trusted sources when it comes to money and travel. You can find him on Twitter:@barrychoi


  1. Ada Browne on March 18, 2021 at 3:01 PM

    Beginner investor here. If you are waiting for a GIC to mature but have realized there are much better options out there in terms of financial institutions can you start a TFSA with another institution to start investing with them and transfer the other funds once the GIC matures?

    • Barry Choi on March 18, 2021 at 3:04 PM

      Hi Ada,

      Yes, you can have more than one TFSA with different institutions. You just can’t exceed your contribution amount. Let’s say you have unused room of $10,000. You could open a new account, deposit $10K, and invest it right away. When your GIC matures, you could just transfer it over, or withdraw it before the end of the year and deposit it in your new account the following year.

      • RS on May 23, 2023 at 11:59 AM

        Hi Barry,

        I just opened a TFSA in CIBC by myself online, can I transfer that to wealth simple. what is the process? and will that be beneficial and which interest rate should I choose. As I am not aware of it so I just made TFSA account by me. and now wants to invest to make some money.

        • Barry Choi on May 23, 2023 at 10:55 PM


          You’d need to have Wealthsimple make the transfer to avoid over contributions. That said, if you have more than enough contribution room, you could withdraw it and then open a Wealthsimple account and then deposit it again. Your TFSA can be used for many things. YOu can’t choose an interst rate unless you’re going to invest in a high interest savings account within your TFSA. Even then, the interest rate can change. You should think about what your goals are for the money and then invest accordingly.

          Check this article for more info –

    • Kat on July 16, 2022 at 2:29 AM

      Hi, if I transfer /withdraw all my TFSA contributions from CIBC in Dec 2022 and deposit the funds into Savings account at EQ bank, then wait until Jan 2023 to deposit it into my EQ TFSA account, this will not be treated as new contribution since I have room from 2022? And I won’t be penalized is that correct?

      • Barry Choi on July 16, 2022 at 6:46 AM

        Hi Kat,

        Yes, if you withdraw from your TFSA in 2022, you get all of that contribution back in 2023.

  2. George Nishimura on April 12, 2021 at 12:38 PM

    Is the transfer fee incurred when one transfers a TFSA account between institutions considered a withdrawal and hence can the amount of the fee be replenished into the TFSA account the following January?

    • Barry Choi on April 12, 2021 at 1:34 PM


      It doesn’t count as a withdrawal so it can’t be readded in the following year.

  3. Paula on April 12, 2021 at 5:02 PM

    I deposited the max amount into a TFSA last year but I already had an account open with a balance of $108. The initial deposit was $100 so I didn’t include the $8 in my max calculation. Is that how it works? Or can the balance never be over the max contribution room and I have to withdraw the earnings?

    • Barry Choi on April 12, 2021 at 5:13 PM

      Hi Paula,

      Any gains made within your TFSA do not count towards your contribution room. You only need to keep track of what you’ve contributed and withdrawn.

      • Paula on April 12, 2021 at 5:15 PM

        Thank you. I actually just read this on the Canadian Government website.

  4. Giovanni on April 17, 2021 at 1:55 AM

    I have my TFSA maxed out and I want to move it to another bank. I don’t wish to wait 3-4 weeks.

    I don’t understand your 30,000 vs 40,000 example…

    Why can’t I just withdraw all the money and deposit it a TFSA at the new bank? At the end of the year CRA will see the withdraw and the deposit and no tax should be owing…no?

    • Barry Choi on April 17, 2021 at 5:31 AM


      That’s just how the rules work. If you withdraw any amount and contribute it back in the same year, it’s considered a new contribution.

      If you still have enough contribution room, you could withdraw the funds and then move it over without paying taxes.

      • Garret on July 27, 2022 at 10:42 AM

        I did that and CRA totally screwed me. It made me take out all the former growth as an over contribution AND charged me $3000 penalties and intrest

  5. David on August 9, 2021 at 3:53 AM

    I have fully contributed TFSA at Simplii. Last year I noticed the interest rate offered by Simplii was very low, so I did self transfer by withdraw $69,500 in December 2020 and deposit this amount into EQ Bank in January 2021. Then I contributed $6000 into EQ for the year of 2021.

    I still have about $4000 earned interest for the past few years remaining at Simplii. I am wondering if I can do self transfer again at the end of this year: withdraw all from Simplii and deposit at EQ in Jan 2022? Would my $4000 not consider as over contribution besides if I contribute another $6000 for 2022 (if that’s the max limit allowed)?

    • Barry Choi on August 9, 2021 at 6:16 AM


      If you withdraw the remaining $4,000 in 2021 and then deposit in 2022, you’re fine. You could still deposit the new $6,000 in 2022/

  6. David on August 9, 2021 at 10:22 AM

    Thanks Barry! The $4000 room generated by interest won’t be considered as over-contribution when I do self=transfer next year?

    • Barry Choi on August 9, 2021 at 12:48 PM

      Hi David,

      Interest and capital gains can be withdrawn one year and contributed the next year.

      Think of it this way. Whatever you withdraw one year, can be re-contributed the following year, plus your new yearly contribution.

    • Diane on August 4, 2022 at 8:41 PM

      Hi Barry,
      I am the POA for my mother, 93. She has a TFSA with Sun Life. It is the only one. The client service with them is terrible and I want to transfer all of it to a TFSA to Alterna where her chequing account is. Keep everything in one place. Will there be a fee for this? Will my mother lose the intetest she earned?

      • Barry Choi on August 4, 2022 at 10:56 PM

        Hey Diane,

        It sort of depends what she was invested in. If it were just a high interest savings account, then she wouldn’t lose any of the interest earned. That said, Sun Life might charged a transfer out fee.

        Alternatively, if your mother was invested in GICs that are redeemable, she might lose some interest.

        • Diane on August 5, 2022 at 6:03 AM

          Thanks Barry.. I am really green with financial investments and as I am the Executor of her estate, I don’t want to screw up! Apparently it is a mutual fund investment. On her statement it says its a Granite Conservative Portfolio – FEL. Just shows what she started with, dividends/interest bought then ending total.

          • Barry Choi on August 5, 2022 at 9:24 AM


            Since it’s a mutual fund, your mom wouldn’t lose any capital gains / interest earned to date.

            There’s only one issue.

            If you wanted to continue to keep your mom’s investments in mutual funds, there are a few steps. The fund your mother is currently invested in is exclusive to Sun Life. That means if you were to transfer to Alterna, you’d have to sell the mutual fund first it first. The cash would be transferred to Alterna, and then you could use that cash to invest in another mutual fund with Alterna.

  7. Debbie on July 18, 2022 at 3:44 PM

    Do I need to fill out a T2033 form to transfer my tfsa from one institution to another?

    • Barry Choi on July 18, 2022 at 5:31 PM

      Hey Debbie,

      No, a T2033 doesn’t need to be filled out.

  8. Peter on August 2, 2022 at 1:26 PM

    With Tangerine bank (or any other bank), I have $5000 in the TFSA account and contributed $5000 so far in 2022.

    Will buying Tangerine Tax Free GIC(tfsa gic) count towards the contribution limit?

    • Barry Choi on August 2, 2022 at 6:18 PM


      Assuming you can purchase the GIC with the funds that are already in your TFSA account, then it wouldn’t count as a new contribution.

  9. Alex M on August 15, 2022 at 8:24 PM

    Hi Barry, if I’m transferring 40k of TFSA from
    one institution to another but only 30k of that was purchased and 10k is gains from the investment. Would that 10k go against my contribution room once transferred over or will it remain as tax free gains?

    • Barry Choi on August 15, 2022 at 8:34 PM

      Hey Alex,

      It sort of depends. If you’re transferring from one institution to another (where your new institution is requesting the transfer), the extra $10k would not count as contribution room.

      Now let’s say you’re withdrawing $40K today from your old financial institution on your own and you want to deposit the funds into your new account at a different financial institution. It would count as a new contribution so you would need $40K in space available. If you go this route, you would get the $40K space back next year.

      • Sonia nudi on September 30, 2022 at 2:27 AM

        Hi Barry
        My parents are transferring their TFSA accounts to a different institution. My moms was transferred and everything was fine. My Dads left the original bank (td) but never arrived to the new account (BMO) it’s has been over 6 months? Has this ever happened? They are still waiting.

        • Barry Choi on September 30, 2022 at 9:03 AM


          That’s highly unusual. I would advise following up with BMO/TD every week and escalating as high as you can. Does anyone know where the money is stuck (I assume TD)? I would even contact TD’s Ombudsman.

          • Sonia nudi on September 30, 2022 at 12:36 PM

            Hi Barry
            The financial advisor has asked for my dad to sign a LOI requesting the transfer to stop going to the BMO abd them advised the money will go back into the td TFSA account .. does this sound correct?

          • Barry Choi on September 30, 2022 at 12:46 PM

            Hey Sonia,

            So is your dad’s money still in his TD account or is it in limbo somewhere?

            BMO should have requested a transfer in-kind or in-cash directly.

            If the transfer was already initiated, I’m not sure how a letter of intent advising them to stop the transfer would help.

            Sure it would technically go back, but if they can get that figured out, why can’t they just send it to BMO?

  10. Sonia nudi on October 3, 2022 at 6:14 PM

    Hi Barry
    The funds are in limbo and they cannot find ? The advisor sent a letter of indemnity for my parents to sign. They advised this only way money can be put back into an account. This sounds strange.. I advised not to sign. Is this correct is this the correct steps ?

    • Barry Choi on October 4, 2022 at 9:38 AM


      SOunds like they want you to sign that letter of indemnity as a way to let them off the hook. I wouldn’t sign it and would keep escalating the issue.

      On a side note, is the money sitting in cash right now or is it still in the original investments? You’d have quite the case if you asked for the funds to be transferred 6 months ago but things sat while markets dropped.

      Write to the ombudsman and keep escalating.

  11. Dawn on September 4, 2023 at 3:41 PM

    I had my TFSA money with a financial advisor transferred to my savings account. I then called a Bank and opened a TFSA and put it in a 1 year GIC at a good rate. But I increased the amount to the full amount allowed. Am I going to have a problem because I took it out myself and then put it in a TFSA GIC? Wish I’d read your column first! The new Bank said there was no problem if I didn’t exceed my limit, but looks like there may be. What will be the consequence?
    Thank you!

    • Barry Choi on September 4, 2023 at 3:53 PM

      Hi Dawn,

      Did you exceed your limit?

      Let’s say you have $85,000 total TFSA room.

      If you withdrew $40,000, you could recontribute that same amount this year since you still had $45,000 left. That would leave you with $5,000 more.

      However, if you added any amount over that limit, you would have gone over and taxes would apply.

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