Maxed out your TFSA and RRSP? Here’s where to put cash

Here’s a quick refresher on RRSPs and TFSAs, including their contribution limits:

Comparison pointsRRSPTFSAPurposeRetirement savingsAny savings goal, short-term or long-termAge requirementAny age up to 7118 and olderEarned income requirementYes, you must earn income to create contribution roomNoTax deduction for contributionsYes, and tax deductions can be carried forward for a future tax returnNoTax on growth (interest, capital gains, dividends)Tax-deferred, until funds are withdrawn (during retirement, when income is likely lower)Tax-freeContribution roomWhichever is lower: 18% of your previous year’s earned income or the government’s annual RRSP contribution limit (for the 2024 tax year, it is $31,560, and 2025, it will be $32,490), plus any unused contribution room from previous yearsAccumulates from age 18, with different amounts announced each year (for 2025, the limit is $7,000); if you were born in or before 2009 (the year the TFSA launched), your cumulative limit as of Jan. 1, 2025, is $102,000What it can holdCash and qualifying investments: stocks, bonds, mutual funds, exchange-traded funds, guaranteed investment certificates (GICs) and moreCash and qualifying investments: stocks, bonds, mutual funds, exchange-traded funds, guaranteed investment certificates (GICs) and more

What if you’ve maxed out your RRSP and TFSA?

If you’ve been making steady contributions to your RRSP and TFSA over time, you may have run out of room—particularly for the TFSA, with its modest annual limits.

If you’re looking for an alternative, consider a high-interest savings account (HISA). HISAs are as easy to use as regular bank accounts: you can access your savings anytime, transfer money and set up automatic deposits. They don’t lock in your money for years or even months, as some savings products would (we’re looking at you, GICs and bonds). And, very important for dedicated savers, HISAs have no contribution limits.

Simplii Financial’s High Interest Savings Account currently has a generous welcome offer for new clients: 3.9% interest on eligible deposits up to $1 million for the first five months. (Offer ends March 31, 2025—so don’t wait!)

Simplii Financial High Interest Savings Account

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Simplii’s HISA has no transaction fees or monthly fees, and no required minimum balance.

Welcome offer: Earn 3.90% interest on eligible deposits for the first 153 days. (Limits apply. Offer ends March 31, 2025.)Interest rate: 0.30% to 2.00% (depending on your balance)

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Simplii’s HISA is free of things you don’t want—including monthly fees, transaction fees and minimum balances—so there are no extra costs to detract from your savings.

If you haven’t run out of RRSP and TFSA contribution room, Simplii also has competitive interest rates on those accounts for clients who open one before March 31, 2025. Visit Simplii.com for details. Customers must join Simplii first before opening a TFSA or RRSP account.

Don’t let bonus interest pass you by

You could leave your surplus cash in your regular savings account, but have you checked its interest rate lately? You may be surprised what you’re missing out on.

A HISA can help you to keep growing your savings when other options have been exhausted or are too restrictive for your financial goals. Whether you’re saving for a family vacation, home renovations or retirement spending (or maybe all three), bonus interest can get you there faster—especially when you consider the power of compounding.

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