Instead of RRSP - Tax-Free Savings Account?

Who knew there was such a thing?

I guess not many, hence the reason for the update from Tom McFeat of the CBC News...

Coming in 2009, a TFSA (Tax-Free Savings Account) looks like an RRSP except that contributions aren't deductible, but nor do you pay tax on the growth, or at withdrawl time. You never permanently loose any contribution allowance room as you can payback what you withdraw or you can carry forward unused amounts. Cool. Too bad there is an initial cap of $5000/year... but the hope is the cap with rise over time.

Everyone who qualifies should have one. The way people will take advantage of them I am sure, will prove to be interesting...

Here it is straight from the horse's mouth...