TFSA has been around only since 2009 and no wonder why many people don’t know how it works. RRSP has been around since the late 50s and people still don’t know how it works!

They are both tax sheltered registered accounts that you dont pay tax on the return of the investment you hold in them. Major difference is RRSP contribution is tax deductible and TFSA contribution is not. However when you take money out of the RRSP you pay tax on it and when you take it out of the TFSA you don’t.

So which one is better option for you? Hate to give you this cliche answer but it depends and in different stages of your life this answer may change.

But to give you a very general answer for people who are in the lowest tax bracket, RRSP has no point.