The Bank of Canada Held Rates: Here’s What I’d Buy in a TFSA Now

The Bank of Canada recently announced yet another hold on interest rates. That’s the fourth consecutive hold, leaving the overnight rate at 2.25%. In fact, the last time that the rate was changed was back in October of 2025. That hold represents an opportunity for investors looking at their TFSA now.

This environment supports investors who want to position their TFSA now for long-term, tax-free growth.

What a pause means for investors

Keeping rates locked at 2.25% reflects that inflation is under control and economic growth is proceeding, despite global uncertainties. For TFSA investors, the opportunity comes in the form of lower volatility that favours income-producers, which are typically capital-intensive.

That includes utilities, banks, and even some REITs. In a TFSA where growth compounds tax-free, this creates a unique opportunity for investors, provided the right stocks are selected.

Here are three options for investors to add to their TFSA now.

Emera offers defensive stability

Emera (TSX:EMA) is a regulated utility giant with operations in Canada, the U.S., and the Caribbean. Utility stocks are known for their reliable, albeit boring business models, impressive dividend histories and capital-intensive nature.

With rates remaining at current levels, the capital aspect remains in check. That benefits a utility that’s focused on growth, such as Emera. The utility’s five-year capital plan allocates nearly $20 billion towards improvements, the bulk of which is in high-growth markets such as Florida.

Emera offers investors an appetizing quarterly dividend, which, as of the time of writing, works out to a yield of 4.1%. The company has also provided annual upticks to that dividend, making it an ideal candidate for any long-term TFSA now.

For investors seeking stability, Emera aligns well with the defensive approach many are taking in their TFSA now.

TD Bank provides value and income

Another great option for investors to consider adding to their TFSA now is Toronto-Dominion Bank (TSX:TD). TD is the second-largest of the big bank stocks and offers cross-border banking operations and wealth management options.

The bank’s presence in the U.S. stretches from Maine to Florida along the East Coast, making it one of the larger banks in that market.

Turning to income, TD has paid dividends for nearly two centuries without fail. For investors looking to add TD to their TFSA now, the bank offers a yield of 3%. Like Emera, TD has also provided annual bumps to that dividend, with the current increase streak running over a decade.

TD’s mix of growth and income makes it a natural fit for anyone building a TFSA now with long-term goals in mind.

RioCan REIT benefits from a steadier rate backdrop

REITs represent another capital-intensive sector that is among the most rate‑sensitive. The impact of a hold from the Bank of Canada helps REITs to ease pressure on financing costs and asset valuations.

One REIT for investors to put into a TFSA now is RioCan (TSX:REI.UN). RioCan is one of the largest REITs in Canada, with a portfolio of necessity‑based retail that is adding mixed‑use development projects into the mix.

RioCan generates a steady income stream and pays out a distribution on a monthly cadence, much like a landlord. Investors looking at a RioCan position in a TFSA now should note that those distributions are sheltered from tax. The REIT currently offers a yield of 5.3%.

Will you add these to your TFSA now?

A rate hold from the Bank of Canada creates a window of stability, and that’s an opportunity for TFSA investors. Emera, TD Bank, and RioCan each offer options for income-seeking investors as well as defensive appeal.

In my opinion, one or all of these stocks would do well in a TFSA now as part of a larger, well-diversified portfolio.

The post The Bank of Canada Held Rates: Here’s What I’d Buy in a TFSA Now appeared first on The Motley Fool Canada.

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More reading

• The Best Sustainable Stocks for Passive Income in 2026
• 2 Top Dividend Stocks to Buy in May
• What to Know About Canadian Utility Stocks in 2026
• 5 Canadian Stocks I’d Feel Good About Holding for 10 Years
• 3 Canadian Stocks That Could Outperform if Growth Stays Soft

Fool contributor Demetris Afxentiou has positions in Toronto-Dominion Bank. The Motley Fool recommends Emera. The Motley Fool has a disclosure policy.