Tools & Resources

RRSP vs TFSA — Which Is Right for You?

Four questions. One clear recommendation. Built on Canadian financial planning logic, not generic advice.

RRSP or TFSA — or something else entirely?

This tool asks you four questions and gives you a personalised recommendation. It takes about 90 seconds. No email required.

Note: This is educational guidance, not financial advice. Every situation is different — a fee-only financial planner can help with specifics.

Quick Definitions

TFSA
Tax-Free Savings Account. Contributions from after-tax income. Growth and withdrawals are completely tax-free. 2024 limit: $7,000. Cumulative room since 2009.
RRSP
Registered Retirement Savings Plan. Contributions reduce taxable income now. Growth is tax-sheltered. Withdrawals in retirement are taxed as income. 2024 limit: 18% of prior year earned income up to $31,560.
FHSA
First Home Savings Account. Best of both worlds for first-time buyers: contributions are tax-deductible (like RRSP) and qualifying home-purchase withdrawals are tax-free (like TFSA). $8,000/year, $40,000 lifetime.

General rule of thumb: If your income is below ~$55,000, the TFSA is usually the better starting point. Above $100,000, the RRSP deduction is worth more. The FHSA is the first account to open if you're a first-time buyer — it beats both.