The 2 most common savings vehicles in Canada are:

  • Registered Retirement Savings Plans (RRSP)
  • Tax Free Savings Accounts (TFSA)

It is important to note that these particular vehicles are not an investment in themselves; they are containers for which you can put in many different types of investments.

The primary purpose of these vehicles is to allow the growth of investments with preferred tax treatment. Typically with an RRSP, you do not pay tax on the growth of the investment until it is withdrawn at a later date, and you can deduct the deposits made into an RRSP each year (subject to an annual maximum).

A TFSA does not permit the deduction of contributions, however, the investments held internally grow tax free, and the future value can be withdrawn tax free, unlike a RRSP. They do however have smaller annual contribution limits.

Both of these vehicles can be effective in helping your investment assets grow for tomorrow, while saving or deferring taxes today. There is no right or wrong solution, both have their advantages and disadvantages: we can tailor a solution for your unique needs.


BTN Financial Services Inc.

205 - 45923 Airport Road

Chilliwack, BC V2P 1A3


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