Savings & Investments
Use the accounts the way they were designed to be used
Canada gives savers several tax-advantaged accounts, each built for a different purpose. Most of the value comes not from picking investments, but from choosing the right account, in the right order, and contributing consistently.
The registered accounts
Four accounts, four different jobs
These are containers, not investments. What you hold inside them, and which one you fill first, is where the planning happens.
TFSA
Flexible, tax-free growth and tax-free withdrawals for any purpose. The most versatile account most Canadians have access to.
Learn moreRRSP
Contributions reduce taxable income now; withdrawals are taxed later. Built primarily for retirement.
Learn moreRESP
Education savings for a child, with federal grant money that is difficult to replicate anywhere else.
Learn moreFHSA
For qualifying first-time home buyers: a deduction going in and, when used for a qualifying home, tax-free coming out.
Learn moreSequencing
Which account should you fund first?
- An employer match on a group plan is usually the first stop, because it is immediate, guaranteed value.
- If you have a child and plan to fund education, RESP contributions that attract the federal grant are hard to beat.
- For most people in lower or middle brackets, TFSA flexibility comes before RRSP deductions.
- RRSP contributions become more compelling as your marginal tax rate rises, especially if you expect a lower rate in retirement.
- If you are saving toward a first home and qualify, FHSA room is worth claiming early, because it starts accumulating once the account is opened.
Sequencing depends on your income, your household, and your timeline. The order above is a general starting point, not a recommendation for your situation.
Common mistakes
What quietly costs people the most
- Leaving contribution room unused year after year, then trying to catch up all at once.
- Holding cash in a registered account for years without ever deciding what it should be invested in.
- Over-contributing to a TFSA by re-depositing a withdrawal in the same calendar year, which triggers penalty tax.
- Withdrawing from an RRSP early, permanently losing that contribution room and paying withholding tax.
- Naming a beneficiary once and never updating it after a marriage, separation, or a new child.
Questions we hear often
Registered account basics
- How do I know how much room I have?
- The Canada Revenue Agency tracks your contribution room and reports it through your CRA My Account and your notice of assessment. Because transfers and withdrawals can lag in CRA’s records, it is worth confirming before making a large contribution.
- Do contribution limits change?
- Yes. Annual limits and thresholds for these accounts are set by the federal government and are periodically adjusted. We avoid publishing specific dollar figures here so nothing on this page goes stale. We confirm current limits with you directly.
- Can I hold investments other than cash?
- Registered accounts can generally hold a range of qualified investments. Which options are available depends on the institution or provider holding the account, and suitability depends on your timeline and comfort with risk.
- What happens to these accounts when someone dies?
- Treatment varies by account type and by how beneficiaries or successor holders were designated, and provincial rules matter as well. This is one of the most common places we find outdated paperwork during a review.
Let’s look at your accounts together
Bring what you have: statements, notice of assessment, a rough list. We’ll map out where the unused room is and what to prioritize.