Non-Registered
A taxable investment account with no contribution limit.
What it is
An investment account that is not tax-sheltered like a TFSA, RRSP, FHSA, or RESP.
Best for
Investing after registered accounts are full or when you want maximum flexibility.
Watch for
Taxes on dividends, interest, capital gains, and foreign withholding tax.
Quick take
- No annual contribution limit.
- No withdrawal restrictions.
- Investment income is taxable.
- Useful once TFSA, RRSP, FHSA, or RESP room is used.
Key terms
- Capital gain: profit when you sell an investment for more than you paid.
- Dividend: cash paid from a company or fund.
- Interest income: usually taxed more heavily than capital gains or eligible dividends.
- Adjusted cost base: your tax cost used to calculate capital gains.
Pros
| Topic | Notes |
|---|---|
| No limit | You can contribute as much as you want. |
| Flexible | Withdraw anytime without registered-account rules. |
| Good overflow account | Useful after registered accounts are maxed. |
| Tax planning | Capital gains and eligible dividends may receive better tax treatment than interest. |
Cons
| Topic | Notes |
|---|---|
| Taxable income | Dividends, interest, and realized gains may create tax bills. |
| Record keeping | You need to track adjusted cost base and realized gains. |
| Less tax efficient | Usually worse than TFSA/RRSP/FHSA for long-term compounding. |
| Foreign tax drag | Foreign dividends may face withholding tax. |
Educational content only — not financial advice.