Considering a TFSA, RRSP or RBC High Interest eSavings account? You don’t have to choose—you can hold all three at RBC. 1Legal Discover how each of these accounts can help you reach your goals:
Responsive Table Example
Feature TFSA RRSP RBC eSavings
What is it?

A registered savings plan where your investment earnings and withdrawals are tax-free

Explore TFSAs

A registered savings plan where your investment earnings are tax-deferred and your contributions are tax-deductible (up to your personal deduction limit)

Explore RRSPs

An online savings account with high interest paid on every dollar2Legal , calculated daily and paid monthly

Explore eSavings
What is it typically used to save for? Save for anything—short or long-term goals (new bike, first home, etc.) Save for a more comfortable retirement Save for any reason—for example, your emergency fund
Who can open one? Canadian residents with a Social Insurance Number (SIN) who are at least 18 or age of majority in your province of residence.

Canadian residents of qualifying age, who have a valid Social Insurance Number (SIN), earned income, and who file a tax return in Canada.

Canadian residents with a Social Insurance Number (SIN) who are at least 18 or 19 (age of majority in your province)

What types of investments can I hold in it?3 Legal4 Legal Cash only
Can I open an account with someone else? No—only individual accounts No—only individual accounts, but you can contribute to a spousal RRSP Yes—individual and joint accounts allowed
Tax Treatment
Are contributions tax-deductible? No Yes (up to your personal deduction limit) No
Do my savings grow tax-free or tax-deferred? Tax-free (never taxed) Tax-deferred (taxed when you take the money out) No, the interest you earn is taxable
Are withdrawals taxed? Tax-free (never taxed) Taxes are withheld at source. In addition, amounts withdrawn are added to taxable income for the year of the withdrawal. No
Contributing Money
How much can I contribute each year? $6,000 for 2022 (subject to change in the future) plus your unused contribution room and any amounts you’ve withdrawn from previous years 18% of previous year's earned income, less any pension adjustment, up to maximum annual limit ($29,210 for 2022), plus any unused contribution room from previous years. No Limit
Is there an over-contribution penalty tax? Yes, 1% per month on excess contributions Yes, 1% per month on excess contributions (if you exceed your deduction limit by $2,000) No
Can I carry forward unused contribution room? Yes, indefinitely Yes, until the year you turn 71 Not applicable/no limit
Do I have to have earned income to contribute? No Yes No
Can I contribute after age 71? Yes

No, you must collapse your plan by December 31 of the year you turn 71.

You can convert your plan to a RRIF or annuity to receive a steady stream of income, or make a taxable withdrawal for the full balance of your plan.

Yes
Withdrawing Money
Can I take my money out for any reason? Yes, although timing depends on what investments you hold in your TFSA Yes, although timing depends on what investments you hold in your RRSP. Note however that taxes are withheld at the time of withdrawal (unless participating in the Home Buyers’ Plan or Lifelong Learning Plan) Yes, at any time
If I withdraw money, do I get my contribution room back? Yes, withdrawal amounts are added to contribution room the following year No, withdrawals have no bearing on your deduction limit or contribution room. Not applicable
Do withdrawals affect government benefits? No Possibly. Withdrawals increase your income for the year in which they’re made. This could impact income tested government benefits like Old Age Security (OAS). No

Ready to Invest?

Open or contribute to your TFSA today!