Here’s a quick refresher on RRSPs and TFSAs, including their contribution limits:
| Points of comparison | RRSP | A TFSA |
|---|---|---|
| The purpose | Retirement funds | Any savings goal, short term or long term |
| Age requirement | Any age up to 71 | 18 years and older |
| Income requirement | Yes, you have to find money to build a donation room | No |
| Contribution tax deduction | Yes, and tax deductions can be carried forward for future tax refunds | No |
| Tax on growth (interest, capital gains, dividends) | Tax deferral, until funds are withdrawn (during retirement, when income may be lower) | There is no tax |
| Donation room | Whichever is lower: 18% of the previous year’s income or the state’s annual RRSP contribution limit (for the 2024 tax year, it’s $31,560, and for 2025, it will be $32,490), plus any unused contribution room from previous years . | Accumulates from 18 years, with different amounts announced each year (in 2025, the limit is $7,000); if you were born in or before 2009 (the year the TFSA was introduced), your accumulated limit as of Jan. 1, 2025, is $102,000 |
| What can hold it | Cash and eligible investments: stocks, bonds, mutual funds, exchange-traded funds, guaranteed investment certificates (GICs) and more. | Cash and eligible investments: stocks, bonds, mutual funds, exchange-traded funds, guaranteed investment certificates (GICs) and more. |
What if you upgraded your RRSP and TFSA?
If you’ve been making consistent contributions to your RRSP and TFSA over time, you may have run out of room—especially the TFSA, with its modest annual limits.
If you’re looking for an alternative, consider a high-interest savings account (HISA). HISAs are as easy to use as regular bank accounts: you can access your savings at any time, transfer money and set up automatic deposits. They don’t lock up your money for years or even months, like other savings products would (we’re looking at you, GICs and bonds). And, most importantly for dedicated savers, HISAs have no contribution limits.
Simpli Financial’s High Interest Savings Account currently has a welcome offer for new customers: 3.9% interest on qualifying deposits of up to $1 million for the first five months. (Offer ends March 31, 2025—so don’t wait!)
sponsored
Simplii Financial High Interest Savings Account
Simplii’s HISA has no operating fees or monthly fees, and no minimum balance is required.
Welcome offer: Earn 3.90% interest on qualifying deposits for the first 153 days. (Limits apply. Offer ends March 31, 2025.)
Interest rate: 0.30% to 2.00% (depending on your balance)
Simplii’s HISA has no frills—including monthly fees, transaction fees and minimum balances—so there’s no extra cost to put a damper on your savings.
If you haven’t run out of RRSP and TFSA contribution room, Simplii also has competitive interest rates on those accounts for customers who open one before March 31, 2025. Visit Simplii.com for details. Customers must join Simplii first before opening a TFSA or RRSP account.
Don’t let the bonus interest pass you by
You may be leaving your savings in your regular savings account, but have you checked its interest rate lately? You might be surprised what you’re missing.
A HISA can help you continue to grow your savings when other options have been exhausted or severely limit your financial goals. Whether you’re saving for a family vacation, home improvement or retirement (or maybe all three), bonus interest can get you there quickly—especially when you consider the power of compounding.
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