TFSA vs. RRSP: What’s The Difference?

When you first start earning an income, you often wonder what to do with your “newfound” money. You may want to put aside some money for the long-term (i.e. retirement) and also invest a portion of the money in the hopes of growing your savings for more immediate use. , The two most common savings/investment accounts you hear about are Tax-Free Savings Accounts (TFSAs) and Registered Retirement Savings Plans (RRSPs). Two very common questions about these are, “What’s the difference between a TFSA and an RRSP?” and, “Which account is right for me?”.
There are various factors that you should consider when deciding which account is best for you. You need to consider your reasons for saving if you plan to make withdrawals from the account, and your planned contribution amounts.