OFFER
Let's simplify your finances
Investing in a RRSP or TFSA?
Enjoy life before and after retirement with a savings plan that combines the benefits of an RRSP and a TFSA.
Our savings products offer competitive rates to keep your savings on course.
RRSP vs. TFSA
RRSPs: Save for retirement
The RRSP is a registered savings plan that offers tax benefits. It helps you save money since the earnings are tax-deferred until you withdraw the funds. It is useful, for example:
- saving for retirement
- buying or building your first home
- financing your education
TFSAs: Save for a specific goal
A TFSA is a registered savings plan that allows you to put money aside tax-free to reach short-term goals throughout your life. It is useful for:
- renovating your home
- buying a car
- starting your business
- taking a trip
- saving for retirement
How do they stack up?
RRSP
CONTRIBUTIONS START
As soon as you have eligible earned income in the year preceding the contribution.
As soon as you have eligible earned income in the year preceding the contribution.
ANNUAL CONTRIBUTION AMOUNT
18% of the previous year's earned income, up to $29,210 (2022) and $27,830 (2021), less the previous year's pension adjustment if you have a pension plan with your employer.
18% of the previous year's earned income, up to $29,210 (2022) and $27,830 (2021), less the previous year's pension adjustment if you have a pension plan with your employer.
CONTRIBUTION ROOM AVAILABLE
The total of the unused portion of your annual maximum deductible amount since 1991.
The total of the unused portion of your annual maximum deductible amount since 1991.
EXCESS CONTRIBUTION
Limit of $2,000 more than the allowable contribution.
Limit of $2,000 more than the allowable contribution.
EXCEED THE MAXIMUM CONTRIBUTION AMOUNT
You may have to pay a penalty of 1% of the excess amount for each month that it remains in your account.
You may have to pay a penalty of 1% of the excess amount for each month that it remains in your account.
IS THE CONTRIBUTION DEDUCTIBLE FROM TAXABLE INCOME?
Yes
Yes
CONTRIBUTION DEADLINE
From January 1 of a fiscal year to the first 60 days of the following year.
From January 1 of a fiscal year to the first 60 days of the following year.
INVESTMENT INCOME
Not taxable
Not taxable
WITHDRAWALS
Taxable
Taxable
THE PLAN ENDS
On the earliest of these two events: December 31 of the year of your 71st birthday, or upon your death.
On the earliest of these two events: December 31 of the year of your 71st birthday, or upon your death.
TFSA
CONTRIBUTIONS START
When you're 19 years old1.
When you're 19 years old1.
MAXIMUM ANNUAL CONTRIBUTION AMOUNT
2009 to 2012: $5,000
2013 and 2014: $5,500
2015: $10,000
2016 to 2018: $5,500
2019 to 2022: $6,000
2009 to 2012: $5,000
2013 and 2014: $5,500
2015: $10,000
2016 to 2018: $5,500
2019 to 2022: $6,000
CONTRIBUTION ROOM AVAILABLE
The total of the unused portion of your annual maximum allowable amount since 2009.
The total of the unused portion of your annual maximum allowable amount since 2009.
EXCESS CONTRIBUTION
Not allowed
Not allowed
EXCEED THE MAXIMUM CONTRIBUTION AMOUNT
You may have to pay a penalty of 1% of the excess amount for each month that it remains in your account.
You may have to pay a penalty of 1% of the excess amount for each month that it remains in your account.
IS THE CONTRIBUTION DEDUCTIBLE FROM TAXABLE INCOME?
No
No
CONTRIBUTION DEADLINE
From January 1 to December 31 of the current year.
From January 1 to December 31 of the current year.
INVESTMENT INCOME
Not taxable
Not taxable
WITHDRAWALS
Not taxable
Not taxable
THE PLAN ENDS
Upon your death
Upon your death
- In New Brunswick, the age of majority at which a person may enter into a contract (including to open a TFSA) is 19. However, effective in 2009, a person would otherwise be eligible may begin accumulating contribution room toward a TFSA at age 18 and combine it with his or her TFSA contribution room the following year.