Products

Every Canadian product, explained.

TFSA, RRSP, FHSA, GICs, ETFs, mutual funds, insurance — every product Canadians use, with clear pros, cons, and the real numbers. Independent. Not affiliated with any institution.

Rates refreshed December 1, 2025·Auto-updated weekly

🧊

TFSA

· Tax-Free Savings Account

The most flexible tax shelter in Canada.

2025 limit

$7,000/year (cumulative since 2009)

Contributions aren't tax-deductible, but everything you earn inside — interest, dividends, capital gains — grows tax-free, AND withdrawals are tax-free. You can withdraw any time without penalty.

Pros

Tax-free growth and withdrawals — forever
Withdrawals don't count as income (won't affect OAS, GIS)
Withdrawn amounts add back to your room next calendar year
Use for anything: emergency, vacation, retirement, house

Cons

Contributions are NOT tax-deductible
U.S. dividends inside a TFSA still get hit with 15% withholding tax
Day trading inside a TFSA can be reclassified as business income
Over-contributing triggers a 1%/month penalty

Best for

Emergency funds
Short and long-term savings
Investing in ETFs at any income level
Anyone whose tax rate today is similar to or lower than in retirement

Key facts

→You start accumulating room the year you turn 18 (in most provinces)
→If you've never contributed and were 18+ in 2009, your room is ~$102,000 (2025)
→Check your room on your CRA My Account page

🧮

RRSP

· Registered Retirement Savings Plan

Tax now, refund reinvested.

2025 limit

18% of last year's earned income, max $32,490

Contributions are tax-deductible, growth is tax-deferred, but every dollar you withdraw is taxed as income. Best for high earners who'll be in a lower bracket in retirement.

Pros

Immediate tax refund equal to your marginal rate × contribution
Tax-deferred growth
Spousal RRSP allows income splitting
Home Buyers' Plan: borrow $60k tax-free for first home

Cons

All withdrawals are taxed as income
Mandatory conversion to RRIF at age 71
Withdrawing before retirement triggers withholding tax + lost room
Counts as income for OAS clawback in retirement

Best for

High-income earners (top bracket today)
People with employer matching
Long retirement horizons
Income splitting via spousal RRSP

Key facts

→Refund = contribution × marginal tax rate
→Pro move: reinvest the refund into your TFSA
→Unused room carries forward indefinitely

🏠

FHSA

· First Home Savings Account

RRSP deduction + TFSA tax-free withdrawal.

2025 limit

$8,000/year, $40,000 lifetime

The newest registered account (launched 2023). Combines the best of TFSA and RRSP for first-time homebuyers. Tax-deductible going in, tax-free coming out.

Pros

Tax-deductible contributions (like RRSP)
Tax-free growth and withdrawals (like TFSA)
Can be combined with the Home Buyers' Plan ($60k from RRSP)
Unused funds can roll into your RRSP without affecting your room

Cons

Only $40,000 lifetime — won't fully cover a down payment in HCOL cities
Must be used within 15 years of opening
Only for first-time buyers (4-year rule)

Best for

First-time home buyers under age 71
Anyone who hasn't owned a home in 4+ years
People saving for a down payment in the next 1–15 years

Key facts

→Open one ASAP to start the 15-year clock — you don't have to contribute right away
→If you don't buy a home, roll into RRSP
→Available at all major banks and Wealthsimple, Questrade

🎓

RESP

· Registered Education Savings Plan

Government-matched savings for your kid's education.

2025 limit

$50,000 lifetime per child (no annual limit)

For each dollar you contribute, the government adds 20% (CESG grant) up to $500/year. Growth is tax-deferred. Withdrawals taxed in your child's hands (usually $0 tax).

Pros

20% Canada Education Savings Grant on first $2,500/year contributed (up to $7,200 lifetime)
Additional CLB grants for low-income families (up to $2,000)
Tax-deferred growth
Withdrawals taxed in child's hands (usually $0 effective tax)

Cons

No tax deduction on contributions
If child doesn't pursue post-secondary, grants must be returned
$50k lifetime cap is shared across all RESPs for one child

Best for

Parents and grandparents saving for a child's post-secondary education
Lower-income families (extra Canada Learning Bond available)

Key facts

→Contribute $2,500/year per child to maximise the 20% grant
→Family RESPs are more flexible than individual RESPs
→Self-directed RESPs (Questrade, etc.) avoid mutual fund fees

💚

RDSP

· Registered Disability Savings Plan

Up to $4 of grants for every $1 you contribute.

2025 limit

$200,000 lifetime, no annual limit

For Canadians with a Disability Tax Credit. The government adds up to 300% in matching grants (low-income families), plus a $1,000/year bond. The most generous registered account in Canada by far.

Pros

Up to $3,500/year in Canada Disability Savings Grants
Up to $1,000/year in Canada Disability Savings Bonds (no contribution required)
Tax-deferred growth
Doesn't affect most provincial disability benefits

Cons

Requires Disability Tax Credit approval first
Withdrawals before 10 years can require returning grants
Complex withdrawal rules (LDAP/DAP)

Best for

Anyone eligible for the Disability Tax Credit
Low and middle-income families with a disabled family member

Key facts

→If you qualify for DTC, this is THE most powerful account
→Even $1,500/year in contributions gets you $3,500 in grants for low-income families
→Open at all major banks and most credit unions

💰

Non-Registered (Cash)

· Non-Registered Investment Account

No tax shelter, but no contribution limits.

2025 limit

Unlimited

A regular brokerage account with no tax shelter. You pay tax on interest, dividends, and 50% of capital gains every year. Useful only after maxing TFSA, RRSP, and FHSA.

Pros

No contribution limit
No withdrawal restrictions
Capital gains only taxed at 50% inclusion rate
Eligible Canadian dividends get the dividend tax credit

Cons

All gains, dividends, and interest are taxable annually
U.S. dividends taxed as foreign income at full rate
Triggers capital gains on rebalancing

Best for

After all registered accounts are maxed
Holding investments you want to move freely between people
Holding Canadian dividend stocks (favourable dividend tax credit)

Key facts

→Hold tax-inefficient assets (bonds, REITs, U.S. stocks) in registered accounts first
→Cash and bonds belong in registered accounts due to interest tax
→Use these accounts last after maxing TFSA, FHSA, RRSP

💸

High-Interest Savings Account (HISA)

Liquid cash that actually earns interest.

Current rates

3.0%–4.5% at EQ Bank, Wealthsimple Cash, Saven, Neo, Tangerine promo

A regular savings account with a much higher interest rate than big bank chequing/savings. Cash is fully liquid and federally insured (CDIC) up to $100,000 per institution per account category.

Pros

Fully liquid — withdraw anytime
CDIC insured up to $100k per institution
Much higher than big bank rates (~0.01%)
Available inside TFSA for tax-free interest

Cons

Rate can change without notice
Below GIC rates for locked-in money
Interest is fully taxable in non-registered accounts

Best for

Emergency funds
Short-term savings (1–24 months)
Cash you might need any time

Key facts

→EQ Bank: 3.00% everyday + 4.00% on Notice Savings
→Wealthsimple Cash: 2.75% (3.5%+ for premium)
→Big banks: 0.01–0.05%
→Hold inside a TFSA to avoid tax on interest

🔒

GIC (Guaranteed Investment Certificate)

Lock in a guaranteed rate for a fixed term.

Current rates

1-yr: ~4.5%, 3-yr: ~4.0%, 5-yr: ~3.75% at challenger banks

You hand the bank money for a set period (3 months to 5 years), they hand you a guaranteed interest rate. Principal is fully protected and CDIC insured.

Pros

Principal 100% guaranteed and CDIC insured
Higher rates than HISAs
Predictable: you know exactly what you'll get
Can be held in TFSA, RRSP, FHSA

Cons

Most are non-redeemable — money is locked
Cashable GICs pay ~1% less
Inflation can eat your real return
Interest is fully taxable in non-registered accounts

Best for

Money you don't need for a fixed time
Conservative investors near retirement
Down payment savings with a known timeline
Building a GIC ladder for predictable income

Key facts

→Challenger banks (EQ, Oaken, Saven, Achieva) pay 0.5–1% more than big banks
→Build a ladder: equal amounts in 1, 2, 3, 4, 5-year GICs
→Always shop rates before locking in

💱

Money Market Fund

Higher yield than HISA, but tiny risk.

Current rates

~3.5–4.5% gross, less MER

Invests in very short-term government and corporate debt. Used to be popular as a slightly-better-than-savings option. Now mostly replaced by HISAs and ETFs.

Pros

Slightly higher yields than HISAs
Very low volatility
Daily liquidity

Cons

Not CDIC insured (very low risk but not zero)
MER eats some of the yield
HISA ETFs have largely replaced them

Best for

Inside non-registered accounts where HISA interest is taxed heavily
Sweep accounts at brokerages

Key facts

→HISA ETFs (CASH.TO, PSA, CSAV) are the modern alternative
→PSA, CASH.TO yield ~4.5% with 0.10–0.18% MER

📈

ETFs (Exchange-Traded Funds)

Diversification for almost zero cost.

Typical MER

0.05% – 0.25%

Pools of stocks or bonds traded like a single share. The Canadian PFC favourites are 'all-in-one' ETFs like VEQT, XEQT, VBAL, XBAL — one ticker, instant globally diversified portfolio.

Pros

Extremely low fees (10–40x cheaper than mutual funds)
Instant diversification across thousands of stocks
Tax-efficient structure
Trade like stocks during market hours

Cons

Need a brokerage account
Trade commissions (free at Wealthsimple, $9.95 at most others)
Easy to over-trade — discipline matters

Best for

Anyone investing for retirement, a house, or general wealth-building
DIY investors who want low fees
Both beginners (all-in-one) and advanced (individual building blocks)

Key facts

→VEQT (Vanguard) / XEQT (iShares): 100% equity, ~14,000 stocks, ~0.20% MER
→VBAL (Vanguard) / XBAL (iShares): 60/40 stocks/bonds, ~0.20% MER
→VFV / XEQT.U: S&P 500 only
→Buying VEQT/XEQT once a month and never selling beats 80% of investors

🏦

Mutual Funds

What your bank advisor will sell you. Almost always the wrong choice.

Typical MER

1.5% – 2.5%

Pooled investments managed by a fund company. Canadian mutual funds are notoriously expensive — averaging 2.3% MER. That fee compounded over decades can eat HALF your retirement savings.

Pros

Available at your bank branch with no setup
Some workplace plans only offer mutual funds
Slightly easier for absolute beginners psychologically

Cons

MER averages ~2.3% — a $260,000+ tax over 30 years on a $100k portfolio
Most underperform their index after fees
Trailing commissions create conflict of interest with the salesperson
Often locked-in for years with deferred sales charges (DSC)

Best for

Almost no one. ETFs do everything mutual funds do, but cheaper.
If your only option is a workplace group RRSP with mutual funds, take it for the employer match — but transfer to a brokerage when you leave.

Key facts

→On a $100k portfolio for 30 years at 7%, an ETF leaves you with ~$760k vs ~$432k for a 2% MER mutual fund
→If you have mutual funds, look at switching to ETFs — even an in-kind transfer saves nothing
→Move them to Wealthsimple, Questrade, or a self-directed account at your bank

🤖

Robo-Advisor

Hands-off investing without picking ETFs yourself.

Typical MER

0.40% – 0.70% all-in

An automated investment service that builds and rebalances a low-cost ETF portfolio for you. Takes 5 minutes to set up. Costs ~0.40–0.50%/year, all-in.

Pros

Zero effort — it just runs
Auto-rebalances
Auto-deposits work seamlessly
4–6x cheaper than mutual funds

Cons

More expensive than DIY ETFs (~0.20% extra)
Less flexibility in holdings

Best for

People who want a good, low-cost portfolio with zero effort
First-time investors
People who would otherwise hold mutual funds

Key facts

→Wealthsimple Invest: 0.40–0.50%
→Questwealth: 0.20–0.25% (cheapest)
→BMO SmartFolio, RBC InvestEase, TD GoalAssist — bank robos, slightly more expensive

🎯

Individual Stocks

Fun, but most people lose to the index.

Buying shares of specific companies (Apple, Shopify, RBC, etc). Higher potential reward, much higher risk and time commitment than ETFs. The average DIY stock picker underperforms the S&P 500 over long periods.

Pros

Potentially higher returns than the index
Direct ownership
Tax-loss harvesting opportunities
Eligible Canadian dividends get the dividend tax credit

Cons

Most stock pickers underperform the index over 10+ years
Single-company risk (Nortel, Air Canada in 2020, Cineplex)
Requires constant research
Emotional decision-making leads to buying high and selling low

Best for

Investors who enjoy the research process
After your core ETF holdings are established
Small portion of portfolio (the 'play money' bucket)

Key facts

→Even professional fund managers fail to beat the S&P 500 ~80% of the time
→If you must, keep individual stocks under 10–20% of your portfolio
→Diversify across at least 20–30 stocks if going DIY

📜

Bonds

Boring, predictable, lower returns. Important.

Typical yield

3–5% (2025)

Loans you make to governments or companies. They pay you interest until they mature, then return your principal. Used as the 'safer' part of a portfolio to balance stocks.

Pros

Lower volatility than stocks
Predictable income
Can offset stock losses in bear markets

Cons

Lower long-term returns than stocks
Interest is taxed at full rate (worst tax treatment)
Lose value when interest rates rise
Inflation erodes real returns

Best for

Approaching or in retirement
Risk-averse investors
Diversifying a stock-heavy portfolio

Key facts

→Hold bonds in registered accounts (TFSA/RRSP) — not taxable
→Use a bond ETF (XBB, ZAG, VAB) instead of individual bonds
→Standard rule: hold 'your age' in bonds (e.g. 30 years old = 30% bonds). Many modern advisors recommend less.

🏢

REITs (Real Estate Investment Trusts)

Real estate exposure without buying property.

Typical yield

4–7%

Companies that own and operate income-producing real estate (apartments, malls, offices, industrial). They distribute most income to shareholders. Trade like stocks.

Pros

Real estate exposure without leverage or maintenance
Higher yields than most stocks
Liquid (unlike physical real estate)

Cons

Distributions taxed as 'other income' — worst tax treatment
Best held inside RRSPs
Sensitive to interest rate changes

Best for

Diversification beyond stocks and bonds
Income-focused investors
People who can't afford to buy real estate directly

Key facts

→XRE (iShares S&P/TSX Capped REIT Index) is the most popular Canadian REIT ETF
→Hold in RRSP for best tax treatment

₿

Cryptocurrency

Speculation, not investing. Treat accordingly.

Digital assets like Bitcoin and Ethereum. Extremely volatile. No earnings, no dividends, no intrinsic cash flow. Some people treat them as a small portion of a long-term portfolio.

Pros

Some long-term holders have done very well
Diversification from traditional assets
Can hold spot Bitcoin/Ethereum ETFs in TFSA (BTCC, ETHC)

Cons

Extreme volatility (-80% drawdowns historical)
No cash flow — value is purely what someone will pay
Heavily targeted by scams
Energy and environmental concerns

Best for

Speculative bucket (5% or less of portfolio)
True believers who can sleep through 80% drawdowns

Key facts

→If you must, use a regulated Canadian crypto ETF inside a TFSA
→Don't put more than you can lose to zero
→Don't borrow to buy crypto

💳

Chequing Account

Day-to-day money. Should cost $0.

The account your paycheque goes into and your bills come out of. Big banks charge $4–17/month. Challenger banks charge $0 with all the same features.

Pros

Daily liquidity
Direct deposits and pre-authorised debits
Free e-Transfers and bill payments at challenger banks
CDIC insured

Cons

Big banks charge $4–17/month unless you maintain a $4k+ balance
Pays ~0% interest (use a HISA for savings)

Best for

Everyone
Replace your big bank account if you're paying fees

Key facts

→Free options: EQ Bank Personal Account, Simplii No Fee Chequing, Tangerine No-Fee Daily
→Big bank fees: $16.95/mo at RBC Signature, $16.95/mo at TD Unlimited
→EQ Bank pays 3.00% on balances — actually earns interest in chequing

💰

Credit Card (No Fee Cashback)

Free money on spending you'd already do.

A no-annual-fee cashback or rewards card. Pay it off in full every month and you earn 1–4% back on your spending. Pay interest, and the rewards become a loss.

Pros

1–4% back on spending
Builds Canadian credit history
Trip cancellation, extended warranty, purchase protection

Cons

If you carry a balance, the 19.99% interest dwarfs any rewards
Easy to overspend

Best for

Anyone who pays their card off in full every month

Key facts

→Tangerine Money-Back: 2% back on 3 categories (no fee)
→Rogers World Elite Mastercard: 1.5–3% back, $48 fee waived with $15k spend
→PC Financial World Elite: 30 PC Optimum points per dollar at Loblaws ($120 spend)

✈️

Travel Rewards Credit Card

Worth it if you travel ≥2x/year.

Annual fee cards that earn travel points or miles. Can be excellent value for frequent travellers, but worthless if you don't redeem the rewards.

Pros

Lounge access on premium cards
Travel insurance included (saves $100+ per trip)
No FX markup on some cards
Welcome bonuses worth $400–800

Cons

Annual fees of $120–700
Reward systems can be complex
Devalued points are a real risk

Best for

Travellers who fly 2+ times per year
Hotel loyalty members

Key facts

→Amex Cobalt: best for Canadians who eat out (5x on dining/groceries)
→Aeroplan / TD Aeroplan Visa Infinite Privilege: best for Star Alliance flyers
→Scotia Passport Visa Infinite: no FX markup, 6 free lounge passes

📋

Line of Credit (LOC)

Cheaper than a credit card. Still debt.

A pre-approved borrowing facility that lets you draw and repay flexibly. Interest rates are usually prime + 2–5% (vs 19.99% on credit cards). Can be secured (HELOC) or unsecured.

Pros

Much lower rate than credit cards
Only pay interest on what you use
Flexible repayment

Cons

Variable rate (rises with prime)
Easy to misuse as a permanent debt vehicle
HELOCs put your home at risk if unpaid

Best for

Bridge financing for short-term cash flow
Replacing credit card debt at lower interest
Emergency backup

Key facts

→Unsecured LOC: prime + 3–5%
→HELOC: prime + 0.5–1.5%
→Don't use a HELOC for anything you can't repay if you lose your job

🛡️

Term Life Insurance

The right kind of life insurance for almost everyone.

Pure insurance. You pay a fixed premium for a fixed period (10/20/30 years). If you die during the term, your beneficiaries get a payout. If you don't, the policy ends. Cheap and simple.

Pros

Cheap — a healthy 30yo might pay $20–35/month for $500k of 20-year term
Simple to understand
Replaces lost income for dependents
Tax-free payout

Cons

No cash value — premiums are 'gone' if you don't die
Premiums increase if you renew at the end of the term

Best for

Anyone with dependents
Anyone with a mortgage and a family
Single income earners with kids

Key facts

→Use a broker (PolicyMe, PolicyAdvisor) — you'll get the same policies for less
→Buy 'level term' (premiums stay flat for the term)
→Coverage rule of thumb: 10x your income

⚠️

Whole Life / Universal Life Insurance

Almost always the wrong choice.

Permanent insurance with a 'cash value' investment component. Premiums are 5–10x more expensive than term. Insurance agents push them hard because commissions are massive.

Pros

Permanent coverage
Cash value can be borrowed against
Tax-sheltered growth (limited)

Cons

Premiums 5–10x higher than term
Cash value grows slowly with internal fees
Locked-in for years
Agents earn 50–100% of first year's premium as commission

Best for

Estate planning for high-net-worth Canadians ($2M+ estate)
Specific tax sheltering at very high incomes
Almost no one else

Key facts

→PFC consensus: buy term, invest the difference in your TFSA/RRSP
→If your agent pushes whole life HARD without first asking your full situation, run

🚑

Disability Insurance

More important than life insurance for working-age Canadians.

Pays you a monthly income if you become disabled and can't work. Statistically you're 3x more likely to be disabled than die before retirement. Often overlooked.

Pros

Replaces 60–85% of your income if disabled
Tax-free benefits if you pay premiums yourself
Critical for self-employed people

Cons

Expensive (~1–3% of income)
Underwriting is detailed
'Own occupation' policies cost more but are far better

Best for

Self-employed
Anyone whose family depends on their income
People with no employer LTD coverage

Key facts

→If your employer offers LTD, sign up — usually heavily subsidised
→'Own occupation' policy = pays out if you can't do YOUR specific job
→'Any occupation' policy = only pays if you can't do ANY job (much weaker)

🏥

Critical Illness Insurance

Lump sum if you're diagnosed with a serious illness.

Pays a tax-free lump sum if you're diagnosed with one of ~25 covered conditions (cancer, heart attack, stroke, etc). Often added to mortgage applications — usually worth declining and shopping separately.

Pros

Tax-free lump sum
Use the money however you want

Cons

Expensive
Strict definitions — many claims denied
Disability insurance is usually a better priority

Best for

Self-employed without disability insurance
People who would face out-of-pocket costs from a serious diagnosis

Key facts

→Decline mortgage broker's CI offer — shop separately for better rates
→Real cost: ~$50–150/month for a 35yo with $100k coverage

🏠

Tenant (Renter's) Insurance

Cheap, often required by landlords. Worth it.

Covers your belongings if stolen/damaged, plus liability if you accidentally cause damage to your unit. Most policies are $15–25/month.

Pros

Cheap (~$200–300/year)
Covers liability up to $1–2M
Replaces stolen items
Often required by landlords

Cons

Won't cover everything — read your policy
Some valuables need separate riders

Best for

All renters

Key facts

→Square One, Sonnet, Apollo offer online tenant insurance
→Bundle with auto insurance for discounts