RRSP vs. TFSA: Why the tax free savings account is often the better choice for savers
TORONTO — The registered retirement savings plan (RRSP) is one of the best-known tax shelters available to Canadians, particularly in the weeks before the annual contribution deadline, which is March 1 this year.
But financial experts say a tax free savings account (TFSA) is often a better choice over the long run.
The problem is, many people don’t know what makes a TFSA different from an RRSP. A report by Bank of Montreal estimates that 32 per cent of Canadians are in that camp.