Investments · Accounts
The account matters as much as the investment you put in it.
TFSA, RRSP, FHSA: the same fund does not net the same return depending on the account holding it. The tax treatment makes the gap.
What this page covers
The points to look at
- 01TFSA: tax-free withdrawals, room restored the following year.
- 02RRSP: deduction on contribution, tax on withdrawal, and the HBP for a first home.
- 03FHSA: the RRSP deduction and the TFSA's tax-free withdrawal, for a first home purchase.
Pick the account before the investment
| Account | What it changes | What to ask yourself |
|---|---|---|
| TFSA | Gains are not taxed, and the contribution room you withdraw is restored the following year. | Will I need this money before retirement? |
| RRSP | The contribution lowers taxable income; withdrawals are taxed as income. | Will my tax rate be lower in retirement? |
| FHSA | Combines the RRSP deduction with a tax-free withdrawal, for a qualifying first home. | Am I eligible, and is the purchase planned? |
| Non-registered account | No contribution limit, but gains are taxed every year. | Have I filled the other accounts first? |
Ask before you open an account
- 1.What management and trading fees apply, and are they shown?
- 2.Can I transfer the account elsewhere with no closing fee?
- 3.What is my available contribution room, per the tax agency?
- 4.Is the chosen investment eligible for this type of account?
Guides
Read next
// Investments
FHSA, HBP or TFSA: Which to Use for a First Home?
Three accounts, three logics: a deduction, a temporary RRSP withdrawal or flexible savings. How to compare them before buying.
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Top 10 Tools for Planning Your Savings (FHSA, RRSP, TFSA) in Quebec
Ten resources for understanding and planning registered savings in Quebec, ranked on five public criteria, including QuebecTaux.
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TFSA or RRSP: Choose by Goal and Tax Rate
Choose between TFSA and RRSP based on the goal, the withdrawal horizon and your current and future tax rates.
Frequently asked
What people ask most
It depends on your situation. The FHSA is for saving with a deduction and a tax-free qualifying withdrawal. The HBP temporarily borrows from an existing RRSP and requires repayment. In some cases both can be combined. Have your plan checked.
Put numbers on your decision
Open the calculatorsFor information only: not an approval, and not a rate offer.
A question about your situation?
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