Cut unnecessary costs with one simple change to your banking + MORE Dec 13th

Your RRSP contribution limit is the maximum amount you can add to your registered retirement savings plan each year without triggering penalties. It’s based on your unused RRSP deduction room plus 18% of your previous year’s earned income, up to the annual CRA limit. 

Use our RRSP contribution limit calculator below to find your exact number for this year.

TL;DR RRSP contribution rules, explained

Every year, the government announces the annual contribution limits for RRSP accounts.

Your RRSP contribution limit is based on your previous year’s income and past contribution amount.

If you don’t fully contribute to your RRSP, you can carry over the limit and contribute more than what’s allowed for the following year.

If you’re part of an employer pension plan, your RRSP contribution room is reduced by a “pension adjustment” (PA). You can find this number on your T4.

What’s an RRSP?

A registered retirement savings account (RRSP) is just one of many ways you can save for retirement…

If you’re like many Canadians, you view bank fees as a necessary expense, but this couldn’t be farther from the truth. Paying a small fee each month isn’t usually much trouble, but over a whole year, it can really add up. The good news is that affordable banking has never been more in reach.

Recently, 14 financial institutions—including all 6 Big Banks—agreed with the Financial Consumer Agency of Canada (FCAC) to offer low- and no-cost bank accounts to all Canadians. Bank account shopping just got more profitable.

Is a different bank account really going to save me money?

If you already have a low- or no-cost bank account that meets your needs, making a change isn’t necessary. But for everyone else, there could be hundreds of dollars riding on it.

If you have a standard chequing account with any of the big banks, you’re probably paying between $15.95 and $17.95 per month. Over a year, that works out to around $200! That’s a couple hundred you could put towards your retirement savings (or into a rainy day fund)…

Tax-free savings accounts (TFSAs) are one of the most popular tools for retirement savings. Since you contribute funds that you’ve already paid taxes on, you’ll enjoy tax-free growth. However, the government places limitations on how much you can contribute every year and overall. This is known as your contribution room, or limit. 

Check out our contribution room calculator to see where you stand with your TFSA contributions:

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What is a TFSA?

A TFSA is a savings account that acts like an investment account, which generates tax-free income. Qualified investments include cash, guaranteed investment certificates (GICs), mutual funds, exchange-traded funds (ETFs), bonds, and stocks. The government oversees TFSAs, but banks and financial institutions administer them.

There are three types of TFSAs you can open:

Deposit TFSA: This is what most people think of when they consider a TFSA. A bank or credit union holds the savings account or GIC and you make deposits…