differences between Tax-Free Savings Account and RRSP

RRSP provides an immediate tax savings, since all amounts (below ur limit) r deducted from income. All amounts (original principal plus any accumulated earnings) r taxable once u withdraw from the RRSP. Earnings accumulate tax free in the interim. The advantage is the immediate tax savings, plus the ability of the earnings to compound over the years.

In the Tax free savings account, u use after tax dollars to contribute. Again, earnings accumulate tax free, but all earnings r taxable once withdrawn. Here the only advantage is the ability of the earnings to compound over the years.