Worked Scenarios and Checklists
How to open an RRSP or TFSA in Canada: institution types, documents and first steps
Step by step: choosing where to open an RRSP, TFSA or FHSA, the documents and SIN you need, savings vs self-directed vs managed accounts, beneficiaries and setting up contributions.
Opening an RRSP, TFSA or FHSA takes about the same effort as opening a bank account: you need your social insurance number, government-issued photo ID and your contact and employment details, and you answer a short questionnaire about your goals and risk tolerance. The real decisions come before you sign: what kind of institution (bank branch, online brokerage, robo-advisor, credit union or caisse, insurer), what kind of account inside the plan (deposits only, mutual funds, self-directed), and who receives the money if you die. Know your room first, so the first deposit does not become an over-contribution.
This guide is part of the scenarios hub. It does not recommend any provider. General information only.
Step 1: check your room
| Account | Where to find your room | Common pitfall |
|---|---|---|
| RRSP | Notice of assessment ("RRSP deduction limit") or CRA My Account | Forgetting group RRSP payroll contributions already made this year |
| TFSA | CRA My Account, "TFSA room available on January 1" | My Account not yet reflecting this year's deposits or withdrawals |
| FHSA | No room until you open one; then $8,000 for the first year | Assuming room built up before you opened the account |
See the RRSP room guide and the TFSA room guide for how to work out the figures.
Step 2: choose the type of institution
| Institution type | What you can usually hold | Help available | Points to compare |
|---|---|---|---|
| Bank or trust company, in branch | Savings deposits, GICs, the bank's own mutual funds | Branch advisers (often salaried, licensed for mutual funds) | MERs, range of funds offered |
| Online brokerage | Stocks, ETFs, mutual funds, GICs, bonds | Little or none; you decide | Commissions, account fees, FX spreads, tools |
| Robo-advisor (online portfolio manager) | Pre-built ETF portfolios | Online questionnaire and portfolio manager oversight | Management fee plus ETF MERs |
| Full-service investment dealer | Wide range, with an adviser | Personal adviser | Advice fees, minimum balances |
| Credit union or Quebec caisse | Deposits, GICs, often mutual funds | Branch staff | Rates, provincial deposit insurance |
| Insurance company | Segregated funds, annuities, deposit products | Licensed insurance representatives | Guarantees and their cost, Assuris protection |
You can hold plans at several institutions. Many people keep an emergency TFSA at a bank and an investment TFSA at a brokerage. Room is personal and shared across all of them.
Step 3: choose what sits inside the plan
The registered plan is the wrapper; inside it you choose the holdings:
- Deposit-only plan: a savings deposit or GICs. Simple and covered by deposit insurance within limits. Good for short horizons and emergency funds.
- Mutual fund plan: funds chosen with an adviser or from a list. Check each fund's MER.
- Self-directed plan: buy and sell almost any qualified investment yourself.
- Managed plan: a robo-advisor or portfolio manager chooses and rebalances.
Some investments are not allowed: shares of a corporation you control (more than 10% interest) are generally prohibited investments, and some private holdings are non-qualified. Penalty taxes on these can be heavy, so check with the institution before buying anything unusual. Spot crypto assets held directly are not qualified investments, but some crypto ETFs listed on Canadian exchanges are.
Step 4: documents and identity
Have ready:
- Social insurance number (required for all registered plans).
- Government-issued photo ID; institutions must verify identity, often online with your ID and a selfie or through a bank verification service.
- Address, phone, email, employer and occupation.
- Banking information for the account that will fund contributions.
- For an FHSA: confirmation that you meet the first-time home buyer test.
- For a spousal RRSP: your spouse's or common-law partner's name and SIN; the spouse is the annuitant and must sign or be named on the application.
You will also complete a know-your-client (KYC) questionnaire: income, net worth, investment knowledge, goals, time horizon and risk tolerance. Answer accurately; advisers must make suitability decisions based on it, and it matters if you ever need to complain.
Step 5: name a beneficiary or successor holder
- RRSP and RRIF: naming your spouse or common-law partner allows a tax-deferred rollover on death. Naming someone else is possible, but the plan value is generally taxed on your final return.
- TFSA: naming your spouse as successor holder lets them take over the account intact. Others are named as beneficiaries.
- Quebec: for plans that are not insurance contracts, designations are generally made in a will, not on the plan form.
The beneficiaries guide explains the consequences.
Step 6: set up contributions
- Automatic contributions on payday keep you consistent and make it easier to stay within room.
- For a TFSA, divide your remaining room by 12 and set that as the monthly amount (2026 room of $7,000 is about $583 a month).
- For an RRSP, remember the March 1, 2027 deadline for 2026 deductions, and keep both receipts.
- For an FHSA, contributions must be in by December 31 to count for the year.
Worked example: opening a TFSA and an FHSA together
An illustrative 26-year-old in Nova Scotia (age of majority 19) has $9,000 saved, no previous TFSA deposits and no home. They open a self-directed TFSA and an FHSA at an online brokerage on the same day: $1,000 into the FHSA (which creates $8,000 of 2026 room, with $7,000 unused and carried to 2027) and $8,000 into the TFSA (having turned 18 in 2018, they have $5,500 + $6,000 × 4 + $6,500 + $7,000 × 3 = $57,000 of cumulative room, so $8,000 fits easily). Next year they can contribute up to $15,000 to the FHSA ($8,000 new plus $7,000 carried forward).
Frequently asked questions
Can I open an RRSP without earned income?
You can open one, but you can only contribute up to your available room, which comes from earned income.
Is there a minimum deposit?
It depends on the institution and product. Some GICs and managed accounts have minimums; many brokerages do not.
Can I open a TFSA for my child?
Not before they turn 18 (or open it themselves at the age of majority). Room starts accumulating at 18 regardless.
Can I open the account online?
Most institutions allow it, with digital identity verification.
Official sources
- Canada Revenue Agency — qualified and prohibited investments, room in My Account
- Canadian Investment Regulatory Organization — checking a dealer or adviser registration
- Canadian Securities Administrators: National Registration Search — whether a firm or person is registered
- Financial Consumer Agency of Canada — your rights when opening accounts
