Wonder which Registered Product is right for you?
Compare TFSA vs RRSP vs FHSA
TFSA |
RRSP |
FHSA |
|
|
What is it? |
A Canadian Government registered plan where your investment earnings and withdrawals are tax-free | A Canadian Government registered plan where your contributions are tax-deductible (up to your personal deduction limit) and investment earnings are tax-deferred (you may be charged taxes when you withdraw funds) | A Canadian Government registered plan designed to help first time homebuyers. Your contributions are tax-deductible and investment earnings and withdrawals are tax-free if used to purchase your first home |
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What is it used to save for? |
Shorter term goals (new car, vacation, renovations, etc.) or longer term goals (post education, retirement or new home) | Retirement (funds can be borrowed from your plan for school or for First Time Home Buyers Plan- but they need to be paid back) | Your first home |
|
Who can open one? |
Canadian residents with a Social Insurance Number (SIN) who are at least 18 year of age |
Canadian residents with a Social Insurance Number (SIN) who are under age 71, have earned income and file a tax return in Canada |
Canadian residents with a Social Insurance Number (SIN) who are at least age 18 and under age 71; You or your spouse/partner must not have owned a qualifying home as your principal residence in the year the account is opened or in the past four years |
|
Can the plan be opened jointly? |
No—a TFSA is an individual plan | No—an RRSP is an individual plan, but you can contribute to a spousal RRSP | No—an FHSA is an individual plan |
Tax Treatment
| Are contributions tax-deductible? | No |
Yes (up to your personal deduction limit) |
Yes (up to the annual and lifetime limits) |
|
Do my savings grow tax-free or tax-deferred? |
Tax-free |
Tax-deferred (added to taxable income the year you take the money out; a withholding tax will also apply to early withdrawals) |
Tax-free as long as you use funds for a qualifying first home |
How to Contribute Money
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What types of accounts and investments can I hold? |
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How much can I contribute each year?* |
$6,500 for 2023 plus your unused contribution room and any amounts you’ve withdrawn from previous years so long as the individual was 18 at the time the TFSA was first introduced in 2009 |
18% of previous year’s earned income, less any pension adjustment, up to maximum annual limit ($30,780 for 2023). |
$8,000 annually, plus up to $8,000 max of your unused contribution room, up to a maximum lifetime limit of $40,000 |
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Is there an over-contribution penalty tax?* |
Yes, 1% per month on excess contributions |
Yes, 1% per month on excess contributions (if you exceed your deduction limit by $2,000) |
Yes, 1% per month on excess contributions |
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Can I carry forward unused contribution room?* |
Yes, indefinitely |
Yes, until December 31 of the year you turn 71 |
Yes, unused contribution room can be carried over to the next year, up to a maximum of $8,000 |
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Do I have to earn income to get contribution room?* |
No |
Yes |
No |
RRSP Eligible Investments at SCCU
Term Deposits
Term deposits are a guaranteed way to grow your money short or
long-term with competitive rates and redeemable options.
Mutual Funds & Portfolios
Mutual Funds* offer the potential to make more money,
however a return is never guaranteed.
Speak with an Advisor
Our team of experts can open your ne FGSA contract today to set you up for sucess
We are always here to help
The First Home Savings Account is a registered Canadian Government product, and all information is based on what is currently available from the Canadian Revenue Agency website and is subject to change. Please review for the terms and conditions of the plan.
For tailored advice on taxes, please consult with a professional accountant.
*Mutual funds and other securities are offered through Aviso Wealth, a division of Aviso Financial Inc. Unless otherwise stated, mutual funds, other securities and cash balances are not covered by the Canada Deposit Insurance Corporation or by any other government deposit insurer that insures deposits in credit unions.
Rates, fees and accounts are subject to change. For a complete list of services and fees, refer to our Service Fee Guide
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