SIMPLII TFSA low return | Simplii Financial | Discussion forum

That's right the Simplii TFSA so-called account is an extreme "rip-off" at 0.40%, which is .004.
That is why they run the promo's to get people to put money into it, and then the money is stuck in that horrible account. Shame on Simplii for duping people.

Just make sure you do your careful research, as you cannot just withdraw TFSA money, and then deposit it elsewhere without consequences.
https://www.canada.ca/en/revenue-agency/services/tax/individuals/topics/tax-free-savings-account/transfers.html

With a larger amount some other institution's may cover the transfer fee.
There are also other TFSA HISA's with better rates, even Canadian Tire has 10x the rate of Simplii https://www.highinterestsavings.ca/chart/
But yes a person can have GIC's inside a TFSA account as well.
NOT giving specific advice here at all, be sure to do very very careful research as pulling 94K out of a TFSA can lead to real problems if not transfered according to the CRA rules.

mpmn said
I have a SIMPLII TFSA account and am only receiving approximately $30 per month interest on $94,000 in 2023. Pitiful returns imo.
After reading many threads/posts on this site, I think I should take this money and put it in a GIC account. Our net income for 2023 is around $48,000 which puts us in a low income tax bracket.
Thoughts on this?  

If I were in your situation, I would do the following, assuming Simplii TFSA is all cash:

1. Withdraw everything from Simplii TFSA and put it to regular Savings account at FI. Withdrawing from TFSA is not considered taxable income;

2. Will place these funds to HISA with best interest rate (about 4%) or buy 1yr. GIC (about 5%). Will also look for short-term HISA promo. Will also consider current Tangerine offer of 270 days 5.25% GIC.

3. Come January 1st 2025 or GIC maturity date in 2025, will take these funds and put to TFSA with FI that offers decent return for TFSA HISA or TFSA GIC.

You'll have to pay taxes on interest income from these funds while they sit at regular Savings, but you'll still end with more money than keeping them parked in Simplii TFSA for the whole 2024.