When saving your hard-earned cash for a big purchase, emergency, or your future, you have two options to minimize your taxes. The federal government offers two types of accounts designed to help you get the most out of your savings: a Tax-Free Savings Account (TFSA) and a Registered Retirement Savings Plan (RRSP). Both accounts are excellent financial tools that allow you to save money and reduce your taxes, but is a TFSA or RRSP better for your financial goals?
Depending on your current savings goals, one account might be more suitable than the other. We’re going to look into the difference between RRSP and TFSA to help you decide which version you should use and when.