Not sure what to put in your RRSP and TFSA? Make contributions anyway

Whether you’re a saver or a stock picker, this simple strategy can help you max out your RRSP and TFSA contribution room every year—even if you haven’t decided how to invest the cash.

How to grow your savings faster

Money grows faster in tax-advantaged accounts. Not only do you save on taxes, but your savings compound over time.

RRSPs and TFSAs are two of the easiest accounts Canadians can use to benefit from tax-advantaged investing. Interest, dividends and capital gains are not taxable when your investments are held in these accounts. Plus, RRSP contributions earn you a tax deduction.

Not sure which investments you want to hold in your RRSP? No problem—while you decide, you can put money into a high-interest RRSP savings account, and it counts as an RRSP contribution for the tax year in which it was deposited. For the 2022 tax year, you can make contributions until March 1, 2023.

TFSAs have no set deadline, but contribution room increases every year on Jan. 1. (The past few years, contribution room has been $6,000 annually, and the 2022 total lifetime contribution limit is $81,500 for those born before 1991.)

Even if your long-term plan is to buy guaranteed investment certificates (GICs), stocks, exchange-traded funds (ETFs), mutual funds or other eligible investments, contributing to a high-interest RRSP or TFSA savings account now will help your savings grow while you’re making up your mind. And by setting aside money with automatic contributions, you’ll be ready to take advantage of market dips and new investment ideas.

Saving with automatic contributions

For most people, saving smaller amounts year-round is easier than contributing a single larger lump sum. To make it even easier, you can set up automatic payments from your main bank account into your RRSP or TSFA. This “set it and forget it” approach helps you take full advantage of your contribution limits. Most financial institutions offer automatic transfers, often at no charge.

For example, with EQ Bank, you can set up recurring transfers weekly, monthly or at whatever frequency you choose. Consider timing the contributions to coincide with your paydays or other regular income. You can stop the transfers or change the timing or amount any time online or through the bank’s mobile app. And EQ Bank has zero fees for these services.  


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