The answer to the question of tfsa vs rrsp depends on your income and savings goals. It is often possible and advisable to use both types of registered accounts, provided you stay within the annual contribution limits unique to each type of account. Read more https://ex-ponent.com/free-tools/tfsa-vs-rrsp-calculator/

Both TFSAs and RRSPs provide tax benefits for Canadians to help reach their savings goals. However, they do it differently.

An RRSP is primarily for retirement saving, but it can also be used to save for education costs (the Lifelong Learning Plan) or a down payment on a home (the Home Buyers’ Plan). The most important feature of an RRSP is that contributions are eligible for a federal income tax deduction in the year they are made. This allows you to defer paying taxes on your investment income and the interest that it earns until you withdraw it in retirement.

Maximizing Your Tax Savings: Using a TFSA vs. RRSP Calculator to Optimize Your Investments

Withdrawals from an RRSP are not taxed in the same way, but there is a cost. You will be required to pay a withholding tax on any funds you take out of the account before retirement.

TFSAs are far more flexible than RRSPs in terms of how they can be used for savings goals. They are not restricted to retirement savings, as is the case with RRSPs, and they can be used to save for almost any purpose.