While an RRSP is good for reaching longer-term goals, holding investments in a non-registered account may be the best alternative for meeting shorter goals. The biggest difference between the two is that a registered plan shelters your investment from tax, while a non-registered plan does not.
By opening a non-registered account you can hold more than just cash; similar to a registered account, you can hold investments like mutual funds, GICs, stocks and bonds. So you have the potential of earning more from your investments than leaving your money in a bank account.
By investing inside a non-registered account, you get a great deal of flexibility, including easy access to your money. So you can tap into it as soon as you're ready to achieve your goal.
