[cautiousone]

The title is my question. I've enrolled in a TFSA ('high-interest' savings account...oh, I know, I know, a ridiculous 1%) at my bank, although I have yet to make a contribution. I assumed that I could contribute monthly and take advantage of varying interest rates. However, the bank states I must deposit a lump sum amount because the TFSA is 'registered'. Well, an RRSP is registered, too, and I make monthly purchases of mutual funds, etc. Is any institution allowing regular ongoing contributions?

 

[Dr_V]

I have a TFSA at TD Waterhouse. I made a lump contribution ($5000) this year, but I imagine that I could have made any size of contribution over the course of the year if I had wanted to. (Just like my self-directed RRSP account.)

 

[brad]

When I set up my TFSA last year with ING (they allowed you to set it up in advance of the start date of January 2009), they allowed me to make my contributions whenever I wanted, as long as I didn't go over the $5K limit. I remember making 2 or 3 instalments.

 

[OhGreatGuru]

There should be no reason why you can't make multiple deposits. Maybe the problem is they won't accept automatic monthly payments on this type of account?

Mind you, if you haven't deposited anything yet, maybe they have a minimum initial deposit requirement for the particular type of account you have? With people flipping TFSAs all the time maybe they want to see some real money to justify the paperwork they have to do for a registered account.

 

[ChrisR]

I hold TD e-series funds in my TFSA (through TD mutual funds, not TD Waterhouse). I contribute $400 monthly, simply by purchasing units through online banking (the money comes out of a non-registered savings account). So, yes it should be possible to make contributions whenever you want.

Funny thing is, I actually wanted to put 5k in a TFSA savings account right at the beginning and then use that money to buy fund units each month. The "investment advisor" at TD couldn't figure out how to do that, so we just set it up the way described above.

 

[markham]

i have clients that do tfsa's monthly - no problem, no different than an RRSP, or RESP, we just have to make sure we don't exeed the limit.

 

[stardancer]

Last year, I was offered monthly contributions at TD; however, because I stuck it in a GIC (before the rate crash) I did the whole thing.

I have just opened a TFSA TD Waterhouse brokerage account to get ready for January. Along with the other paperwork, I was sent a monthly contribution application.

 

[spp_24]

My wife and I both have TFSA'a with Scotiabank (Scotia Macleod actually) and we both make automated monthly contributions which are then used to buy a low MER bond fund

 

[cautiousone]

Thank you all for your comments. I'll be asking my Scotiabank rep for clarification and I'll post again with the info. As OhGreatGuru states, the issue may be around a) making automatic deposits and b) into a TFSA cash account. Options might be different were I purchasing mutual funds.