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Deciding Between an RRSP and a TFSA

Investing in a tax-smart account is one of the best ways to grow your money faster. Both Registered Retirement Savings Plans (RRSPs) and Tax-Free Savings Accounts (TFSAs) offer unique benefits, so how do you choose if you can’t contribute to both?

Here's a Quick Overview of Each:

RRSP

  • Save for retirement while reducing your income taxes
  • Defer the taxes on your investment income and pay only when you withdraw the money
  • Borrow from yourself to buy your first home1 or pay for your or your spouse’s education2
  • Hold a variety of investment products, such as GICs, mutual funds and savings deposits

TFSA

  • Save for anything — a car, retirement, vacation and more, without income or age limits
  • Access your savings on short notice
  • Pay no taxes on the money you withdraw or on investment income earned
  • Hold a variety of investment products, such as GICs, mutual funds and savings deposits

Tips to Help You Save More

Tips to Help You Save More

Tip imageSave without even thinking about it

Set up a regular, automatic savings plan for your RRSP and/or TFSA. It’s the easy way to save and will increase your opportunity for returns.

Tip imageInvest early in the year

The earlier in the year you invest in an RRSP or TFSA, the sooner your money can start growing.

I’m Ready to Invest

Choose the type of account you want to open—or call 1-800-463-38631-800-463-3863 if you still aren’t sure.