I have $5,000 that I would like to put in to an investment account. To get the maximum tax benefit, should I put it in my RRSP, my child's RESP, or my TFSA account? I have enough room in each of these, and I shouldn't need to use it for 15 years.
The above is very true, but the biggest bang for your buck can also be in the RESP, assuming you qualify for the grant of 20% per year...it's hard to beat free money from the government...in this account, your investment grows, and the growth and grant is taxed in the hands of the child when it is withdrawn. (Normally, they dont have much income at this point, so pay little or no tax) However, you do not get any income tax deduction or tax break at the time you make the deposit.