It’s the question I hear most often: “Should I put my savings in my RRSP or my TFSA?” And right now, the question has a deadline attached: March 2 is the last day to make RRSP contributions that count for the 2025 tax year.

The core difference is timing of the tax break. RRSP contributions give you a tax deduction today, but you pay tax when you withdraw. TFSA contributions give you no deduction, but growth and withdrawals are completely tax-free. So the rough rule: if you’re in a high tax bracket now and expect to be in a lower one in retirement, the RRSP usually wins. If you’re early in your career with room to grow into higher brackets, the TFSA is often the better first stop.

With the deadline weeks away, here’s the practical move: if you have RRSP room and the income to benefit from the deduction, fund the RRSP first — you can still cut your 2025 tax bill. The TFSA has no deadline at all; its room simply carries forward, so there’s no rush.

One combination people overlook: contribute to the RRSP, take the tax refund, and invest the refund in the TFSA. You get the deduction and the tax-free growth.

And remember the TFSA’s flexibility for money you might need before retirement — withdrawals are tax-free and the room comes back the following year, which makes it the better home for a future home down payment or an emergency fund.

The biggest mistake isn’t choosing the “wrong” account — it’s letting the decision paralyze you into missing the deadline entirely. An imperfect contribution beats a perfect plan that arrives March 3rd.

Not sure how the two fit into your bigger picture? Our Investment Goal Planner can show you what consistent contributions turn into over time. And if you want to sort out your RRSP/TFSA split before March 2, get in touch — there’s still time.