A TFSA is a flexible account that can be used for saving or investing. Contributions are made with after-tax dollars, so you do not receive a tax deduction when you contribute. However, investment growth and withdrawals are generally tax-free. TFSAs can be used for retirement, a home purchase, emergency savings, or other financial goals.

An RRSP is designed primarily for retirement savings. Contributions may reduce your taxable income in the year they are made, while withdrawals are generally taxable as income. Investments inside the account can grow on a tax deferred basis until money is withdrawn.

An FHSA is designed to help eligible first-time home buyers save for a qualifying home purchase. Contributions may be tax-deductible, and qualifying withdrawals for a first home are tax-free. If the funds are not used to purchase a home, the remaining balance can generally be transferred to an RRSP or RRIF without immediate tax consequences and without using existing RRSP contribution room.

An RESP helps families save for a child’s post-secondary education. Contributions are not tax-deductible, but the government may provide a 20% Canada Education Savings Grant (CESG) on the first $2,500 contributed each year, up to $500 annually. If unused grant room is available, up to $1,000 of CESG may be received in a year. The lifetime CESG maximum is $7,200 per beneficiary, and the lifetime RESP contribution limit is $50,000 per beneficiary.

Canada Education Savings Grant (CESG) - Canada.ca

Registered Education Savings Plans and related benefits - Canada.ca

A RRIF is used to turn retirement savings into income. An RRSP must be converted to a RRIF, annuity, or withdrawn by the end of the year you turn 71. Once a RRIF is established, you must withdraw at least a minimum amount each year beginning the following year. The minimum withdrawal is based on your age and the value of the RRIF at the beginning of the year, and the required percentage increases as you get older. Withdrawals are taxable as income.

A non-registered investment account has no contribution limit and offers more flexibility than registered accounts, but investment income earned in the account may be taxable.

Tax efficiency can be improved by choosing investments that generate fewer taxable distributions or by favouring investments that produce more capital growth rather than frequent interest or income payments. Depending on the investment, this may help defer taxes until an investment is sold and can reduce the amount of taxable income reported each year.

Because different types of investment income are taxed differently, the investments held in a non-registered account should be selected with both investment goals and tax efficiency in mind.