3.2.4 Registered savings plans

Tax-Free Savings Accounts (TFSAs) let you put money in a registered plan, and any income the plan earns is tax-free.

Registered Retirement Savings Plans (RRSPs) let you put money into a registered plan and avoid paying taxes on the money you deposit, as well as any earnings it produces until you take it out of the plan.

Tip

During the first sixty days of the year, you can put money in your RRSP to get a tax deduction for the previous year. But don't wait until February. Make regular monthly contributions and your savings will start to grow sooner.

Registered Education Savings Plans (RESPs) let you put money into a registered plan to save for a child's education.

Registered Disability Savings Plans (RDSPs) let you put money into a registered plan to support a person with a disability.

Many conditions apply to registered savings plans. Be sure you understand them so you can decide if they are the best way for you to meet your savings goals. Find out what fees and conditions apply. Some key questions are:

For more consumer tips, read Before you sign any contract: 10 things you need to know by the Financial Consumer Agency of Canada.

See the video, Saving with registered plans, for an introduction to savings.

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