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Originally posted by MeagainMe

Thanks for the info Mr. Pramod.

But as I understand TFSA & RRSP are 2 different things altogether and you can't compare the two as RRSP contribution is tax deductible whereas TFSA contribution is not tax-deductible (I know the article covers this point but I am talking from the comparison perspective)

One can have RRSP contribution under TFSA itself, isn't it?

Suppose person "A" contributes $5000 to RRSP under Market Driven GICs. Then this amount ($5000) would be tax deductible and the interest earned would tax free as well as it's under TFSA, if one decides to withdraw RRSP amount for whatever reasons or it is withdrawn on retirement


Or am I missing something ?

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Under RRSP, you are only deferring taxes. It grows tax free just like TFSA. However, When the money is withdrawn from RRSP, you have to pay taxes.
Whereas in TFSA, you do not pay taxes on the growth, if the money is withdrawn at any time.
There are other differences as well but this should answer your question.