Deciding between a TFSA and an RRSP or an eSavings account? Compare to see what's right for you.

What Is It? A registered investment plan where your investment earnings and withdrawals are tax-free. A registered investment plan where your investment earnings are tax-deferred and your contributions are tax-deductible. An online savings account with high interest paid on every dollar, calculated daily and paid monthly.
How can I use it? Save for anything you want—short or long-term goals Save for retirement Save for anything you want
Account ownership? Individual only Individual only Individual or joint
Tax Treatment
Tax-deductible contributions? No Yes No
Savings grow tax-free or tax-referred? Tax-free (never taxed) Tax-deferred (taxed upon withdrawal) No, the interest you earn is taxable
Taxed withdrawals? Tax-free (never taxed) Taxed (added to taxable income the year the money is withdrawn) No
Annual contribution limits? $6,000 for 2022 (subject to change) plus previous years' unused contribution room 18% of previous year's earned income, less any pension adjustment, up to maximum annual contribution limit No limit
Over-contribution penalty tax? Yes, 1% per month on excess contributions Yes, 1% per month on excess contributions (if you exceed $2,000 lifetime over-contribution amount) No
Carry-forward of unused contribution room? Yes, indefinitely Yes, until the year you turn 71 Not applicable/no limit
Need earned income to contribute? No Yes No
Ablity to contribute after age 71? Yes No, must convert to a RRIF or annuity by the end of the year you turn 71 or close the plan Yes
Withdraw savings for any reason? Yes, although timing depends on what you invest in Yes, but taxes are withheld at the time of withdrawal (unless participating in the Home Buyer's Plan or Lifelong Learning Plan) Yes, at any time
Withdrawals affect contribution room? Yes, withdrawal amounts are added to contribution room the following year No, contributions are based on previous year's earned income No
Withdrawals affect government benefits? No Yes No