.png)
Types of Investment Accounts
Tax-free / Registered Accounts
RRSP
​
Retirement savings account that allows for tax-deferred growth on investments until they are withdrawn, typically at retirement. Contributions are tax-deductible.
​
Contribution Limit:
= 18% of your last year's income, upto max. $31,560 + any "carry-forward" contribution room from previous years
​
​
Use:
-
Can use $60,000 tax-free money for buying home (HBP).
-
Use $10,000/calendar year from your RRSP to finance full-time training or education.
-
Save for Retirement.
(Registered Retirement Savings Plan)
FHSA
​
(First Home Savings Account)
Tax-advantaged account to help save for first home, combining features of both RRSPs and TFSAs. Contributions are tax-deductible, and withdrawals for purchasing first home are tax-free.
​
Contribution Limit
(Lifetime Max: $40, 000):
= $8,000 / calender year + any "carry-forward" contribution room from previous years
​
Use:
-
Use upto $40,000 Tax-free money for buying your first house.
-
Combine with RRSP and can use upto $1,00,000 tax free money towards your first house purchase.
TFSA
​
(Tax-Free Savings Account)
Save and invest money tax-free, with no taxes on interest, dividends, or capital gains. Withdrawals from a TFSA are also tax-free. However, Contributions are not tax deductible.
​
Contribution Limit
(Lifetime Max. $95,000):
= $6,000 for 2024 + any "carry-forward" contribution room from previous years
​
Use:
-
Great investment tool to get tax-free growth.
RESP
​
(Registered Education Savings Plan)
Tax-advantaged savings account to save for your children's post-secondary education. Contributions grow tax-free, and govt. offers additional grants to boost savings. Contributions are not tax deductible.
​Contribution Limit:
= Lifetime Max. $50,000 per child
​
​
​
​
Use:
-
Pay for your child's future education so that they can became whatever they want.
And More
​
-
Registered Retirement Income Fund (RRIF)
-
Registered Disability Savings Plan (RDSP)
Non-Registered Accounts
Savings Account
A savings account is a safe place to keep your money, earning a small amount of interest over time. You can easily access your money whenever you need it, making it very convenient. However, the interest you earn is usually less than what you might get from other investments like stocks.
​
Interest rate offered by banks:
CIBC: upto 1.90%
Scotia: upto 1.40%
TD: upto 0.85%
RBC: upto 1.70%
Neo Financial: upto 4.00%
Wealthsimple: upto 5.00%
​
Chequing Account
A chequing account is like a tool for managing your day-to-day spending—it's not really for making your money grow. It's super handy for paying bills and using your debit card, but it doesn't give you extra money back like a savings account or other investments would.
-
Mutual funds:
- Money managed by Investment
fund banker for a fee.
- Ton of Mutual Funds options
available to select from.
-
Exchange-traded funds (ETF):
- Similar to Mutual Funds but
traded on Stock Exchange.
- Lower fees and provide
greater flexibility for trading.