We recently used an Orange Key to set up an Tangerine Tax-Free Investment Savings Account (TFSA) in my wife’s name to use as our emergency fund and saving for annual expenses like Christmas gifts and property taxes. We decided to use Tangerine for three reasons:
- Unlike some other banks, this is a TFSA with no fees
- The current interest rate is great compared to most other banks’ high interest savings accounts
- Using an Orange Key gave us a free $50 when we opened the account (use this link for an Orange Key worth up to $50 in bonuses and 2.4% interest for 6 months)
TFSA with no fees
Some banks have TFSA accounts with either administration fees or withdrawal fees. We chose Tangerine because they have no fees. This is especially important in these early years of the TFSA since the fees could wipe out any tax savings from the interest on a relatively small balance.
High interest rate
While a couple years ago, I wouldn’t be calling this a “high interest rate”, in the current economy this is about as good as it gets for a savings account. While everyone loves their low mortgage lending rates, the low interest rates have a negative effect when you’re trying to save money and earn interest on it. That said, Tangerine has a good track record of providing one of the best interest rates at any point in time, so I’m hoping to see this rate increase eventually and stay ahead of the competition.
Tangerine does also offer a Tax-Free Guaranteed Investment (GIC) with a higher interest rate (use Orange Key 35090351S1). While this account didn’t suit our needs since we plan to access the money, it could be a great way to set up a GIC ladder inside your TFSA.
Orange Key for up to $50 in bonuses
Being able to use an Orange Key for a free $50 helped us make the choice between Tangerine and other banks. Once you have your own account, you also get an orange key to refer friends and family and not only do they get up to $50 added to their Tangerine savings account, but you will get paid as well!
If you want to sign up for a TFSA at Tangerine, you can use this link to get up to $50 added to your account for free! Once you sign up, just send them a cheque for your initial deposit of $100 and you should sign up for automated savings as well. Once they finalize your account you’ll have the bonuses added. The Orange Key is also good for accounts outside of a TFSA, including high interest savings accounts, GICs, and mutual funds.