The Canadian banking sector is known for its resilience and stability. And when you combine that strength with the tax-free growth benefits of a Tax-Free Savings Account (TFSA), you’ve got a formula that’s hard to beat. The key is choosing stocks that not only have reliable earnings but also pay steady dividends and show strong upside.
While many investors may prefer chasing short-term tech trends, bank stocks continue to offer a compelling mix of income, stability, and long-term upside to TFSA investors. Interestingly, shares of some large Canadian banks have been delivering double-digit gains in 2025 while also increasing earnings.
In this article, I’ll spotlight two such bank stocks that are well-suited for a TFSA, thanks to their rock-solid financials, consistent payouts, and solid long-term growth prospects.
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Scotiabank stock
Bank of Nova Scotia (TSX:BNS), or Scotiabank, is one of the country’s largest banks, with a strong international footprint across Latin America. BNS stock has been on a strong run of late, rallying 35% in the last six months alone. That strong momentum could be a result of the bank’s renewed focus on execution and efficiency, regaining investors’ confidence.
As a result, the stock is currently trading at $91.86 per share with a market cap of around $113.6 billion. It also offers a generous annualized dividend yield of 4.8% at this market price, which adds to its appeal for income-focused TFSA investors.
In the third quarter of its fiscal 2025 (three months ended in July), Scotiabank’s revenue rose 13.4% YoY (year over year) to $9.49 billion. This strong revenue growth also helped the bank post a 15.5% jump in its net profit to $2.35 billion. This strong financial growth came from across the board, as its Canadian operations delivered better margins, while its international banking segment saw strong contributions, especially from Mexico and Chile.
Meanwhile, Scotiabank is actively investing in technology and improving its digital banking platforms to boost efficiency and enhance client experience. As it continues to minimize costs while expanding in high-growth regions, the ongoing momentum in BNS stock could continue. That’s why it continues to be one of the most attractive bank stocks to buy for TFSA investors.
Canadian Imperial Bank stock
Canadian Imperial Bank of Commerce (TSX:CM), or CIBC, is another top-tier Canadian bank you may consider adding to your TFSA in 2025. After rallying by 27% so far this year, the stock is currently priced at $116.82 per share with a market cap of about $108.2 billion. That brings its annualized dividend yield to 3.3%.
In the third quarter (ended in July), CIBC’s revenue climbed 10% YoY to $7.25 billion. This resulted in an 11% increase in its adjusted net profit to $2.1 billion. During the quarter, its Canadian personal and business banking segment led the charge with 17% YoY growth in net income to $812 million, backed mainly by wider net interest margins and volume growth.
Beyond the numbers, CIBC recently rolled out its enterprise-wide artificial intelligence (AI) platform, called CIBC AI, to boost productivity and launched a no-fee credit card that can adapt to a client’s spending habits.
For TFSA investors, that blend of strong earnings, reliable dividends, and technological innovation in banking makes CIBC a solid stock to buy today.
