Should I use a TFSA or RRSP first?

As a general rule, a TFSA is often the better first choice at lower incomes, where an RRSP deduction is worth less, while an RRSP tends to win at higher incomes where the deduction is more valuable. Both shelter growth from tax. Your marginal tax rate now versus in retirement is the deciding factor.

What account is best for saving for a first home?

For most first-time buyers the FHSA is the best single account, because contributions are tax deductible and qualifying withdrawals for a home are tax free. It can be combined with the RRSP Home Buyers' Plan, which allows borrowing up to $60,000 from an RRSP.

Is the RESP grant worth it?

Yes. The Canada Education Savings Grant matches 20 percent of the first $2,500 contributed each year, up to $500 a year and $7,200 per child. That is a guaranteed return on contributions that few other accounts can match, which is why opening an RESP early is widely recommended for parents.

TFSA vs RRSP vs FHSA vs RESP Selector

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TFSA, RRSP, FHSA, RESP. Canada gives you several tax-sheltered accounts, and the order you fill them matters. Get a general funding order based on your goal and income.

Last reviewed June 2026

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A general order to fund your accounts

This is a general framework, not personalized advice. The right order depends on your full situation, including your marginal tax rate, employer pension, and timeline. For a plan tailored to you, speak with a qualified financial or tax professional. See disclosures.

2026 contribution limits at a glance

Account	Annual limit	Lifetime or cumulative
TFSA	$7,000	Up to $109,000 cumulative since 2009
RRSP	18% of prior-year earned income, up to $33,810	Plus unused carry-forward room
FHSA	$8,000, carry forward up to one year	$40,000 lifetime
RESP	No annual cap, grant on first $2,500	$50,000 lifetime per child

1.How the order is built. The suggested sequence follows widely used Canadian planning principles: capture guaranteed government grants first, then use the account whose tax treatment best fits your goal and income. It is a starting point, not a recommendation for your specific circumstances.

2.2026 figures. The TFSA dollar limit is $7,000 and cumulative room reaches $109,000 for someone eligible since 2009. The RRSP limit is 18 percent of prior-year earned income up to $33,810. The FHSA allows $8,000 per year to a $40,000 lifetime maximum, with up to $8,000 of unused room carried forward. The RESP has a $50,000 lifetime contribution limit per child, with the Canada Education Savings Grant matching 20 percent of the first $2,500 each year to a $7,200 lifetime maximum.

3.First-home note. The FHSA combines an RRSP-style deduction with a TFSA-style tax-free qualifying withdrawal. First-time buyers can also withdraw up to $60,000 from an RRSP under the Home Buyers' Plan, repaid over time.

4.Not advice. Educational only, not financial or tax advice. Confirm your personal contribution room in your CRA My Account. See disclosures.

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