Which savings plan to complete my projects?
Open a new account
Pro tip!
Open an FHSA and start saving towards a down payment or other fees related to buying your first property.
Whether it’s planning for retirement or keeping money aside for a rainy day, turning your getaway home into your primary residence, going back to school or travelling the world, we can help you reach your savings goals.
Grow your funds without being taxed on your withdrawals. TFSAs are your savings reserves. Click on a project to discover savings tips.
Need help? Get advice from our savings experts.
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Tax-Free Savings Account (TFSA) |
Registered Retirement Savings Plan (RRSP) |
|---|---|---|
Which to choose? |
Use your TFSA to help finance projects: vacations, wedding, a car, a getaway home, or even just a financial cushion. |
Use your RRSP like a second source of revenue during retirement. You can also become a homeowner through the Home Buyers' Plan (HBP). Or go back to school with the Lifelong Learning Plan (LLP). |
Deductible or taxable? |
Contributions to your TFSA are non-deductible, nor are they taxable at withdrawal. |
Your RRSP contributions are deductible, but withdrawals are taxable. Perfect if you have a lower tax rate in retirement. |
Contribute up to $7,000 in 2024 to your TFSA. Or up to $95,000 in 2024 by claiming your unused contributions from previous years. You must be of age and a Canadian resident1. |
Contribute up to 18% of your income to your RRSP. Or up to $30 780 in 2023. Your unused rights from previous years can increase your investment capacity. |
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| Explore the TFSA | Explore the RRSP |
Practical practice
Saving for your projects tax-free is quick and easy thanks to our digital services. Open an RRSP or TFSA account online in less than 5 minutes! Watch our demo to learn how.
| Contribution room | TFSA | RRSP |
| Annual contribution room |
2009 – $5,000 2010 – $5,000 2011 – $5,000 2012 – $5,000 2013 – $5,500 2014 – $5,500 2015 – $10,000 2016 – $5,500 2017 – $5,500 2018 – $5,500 2019 - $6,000 2020 - $6,000 2021 - $6,000 2022 - $6,000 2023 - $6,500 2024 - $7,000 |
2009 – $21,000 2010 – $22,000 2011 – $22,450 2012 – $22,970 2013 – $23,820 2014 – $24,270 2015 – $24,930 2016 – $25,370 2017 – $26,010 2018 – $26,230 2019 – $26,500 2020 – $27,230 2021 – $27,830 2022 – $29,210 2023 – $30,780 |
| Excess contributions | None. Contribute up to the annual limit and watch your savings grow tax-free, regardless of your annual income. | Contribute up to 18% of earned income (as long as you do not exceed the annual limit). |
| Unused contribution room carried forward | 1% monthly penalty N.B.: If you withdraw funds then make another deposit the same year, you may exceed the contribution limit. | 1% monthly penalty ($2,000 of penalty-free excess permitted). |
| Contribution room can be reused if funds are withdrawn | Annually. |
Annually. |
| Contribution limit indexed | Effective the following year. |
|
| Index of the contribution limit |
Based on the consumer price index (CPI), rounded to the nearest $500. | Based on the increase in the Average Industrial Wage. |
| Spousal contributions | No, but one spouse can give the other spouse the funds required for a contribution without being subject to income attribution rules. 2 |
|
| Transfer to spouse in the event of separation or death | Does not affect contribution room. |
Does not affect contribution room. |
| Tax rules | TFSA | RRSP |
| Contributions deducted from taxable income | ||
| Tax on income generated | ||
| Tax on withdrawals | You can withdraw3 funds from your TFSA at any time and for any reason without paying income tax. |
You can withdraw3 funds from your RRSP at any time and for any reason, but withdrawals are taxed. |
| Minimum withdrawal | Once your RRSP is converted to a Registered Retirement Income Fund (RRIF). |
|
| Affects income-based pension benefits and tax credits (Old Age Security (OAS), Guaranteed Income Supplement (GIS)) | Does not reduce benefits or tax credits. |
Can reduce benefits or tax credits. |
| Taxable after death | If the TFSA is transferred to a spouse, it is not taxable. If inherited by a person other than a spouse, the TFSA is closed and the investments it contains will be converted to non-registered assets. Income generated by such investments will be taxable. |
Not taxable if the RRSP is transferred to a spouse. |
