TFSA (Tax-Free Savings Account)

• Use Case: General savings with no tax on growth or withdrawals.
• Contribution: Indexed annually; 2025 limit is $7,000; total room since 2009 is over $95,000.
• Common Uses: Emergency fund, investing for large purchases, retirement supplement.

FHSA (First Home Savings Account)

• Use Case: For first-time home buyers under age 71.
• Benefits: Combines RRSP-style deductions with TFSA-style withdrawals.

RESP (Registered Education Savings Plan)

• Use Case: Post-secondary education savings for a child.
• Grants: Up to $7,200 in Canada Education Savings Grant (CESG) per child.
• Taxation: Growth is taxed in child’s hands upon withdrawal, often at a low or nil rate.
• Limit: Lifetime max $50,000 per beneficiary.

RDSP (Registered Disability Savings Plan)

• Use Case: Long-term savings for a person with a disability who qualifies for the Disability Tax Credit.
• Grants: Up to $90,000 available through matching contributions and bonds.
• Withdrawals: Tax-deferred, complex rules apply (must maintain for 10 years to retain full grants).