TFSAs and RRSPs are similar products and excellent investment choices for Canadians. Depending on your income level, savings goals, and long-term plans, one may be better than the other. Both are designed for savings, but the RRSP is more a long term concept. For instance, if you tend to make withdraws for short-term needs, then a TFSA (or Tax Free Savings Account) would be the better option. Withdrawing from an RRSP will add to your income for that year and is subject to a 10 to 20 percent withholding tax. Provided it’s not the same year you put the money in, a TFSA has a nominal tax, doesn’t count towards your income and comes without penalty.

Read more: TFSAs Vs. RRSPs 2018: How To Know Which Is Right For You