Non-registered solutions are for savings beyond registered account room — TFSA, RRSP, FHSA, and RESP limits reached, or funds needed before retirement or education.
There is no contribution limit, but growth is taxable annually. Capital gains, dividends, and interest are taxed differently, which affects which investments make sense to hold here versus in a registered account.
- Contribution limit
- None
- Access to funds
- Unrestricted
- Capital gains inclusion
- 50%
- Tax on growth
- Annual, as earned
Half of a realised gain is taxable
Not all investment income is taxed the same way
This is the detail that makes non-registered accounts worth planning rather than just opening. Three types of income are treated very differently, which changes what you should hold here.
- Capital gains — only 50% of the gain is included in income, and only once you sell, giving you control over timing
- Eligible Canadian dividends — taxed at a preferential rate through the dividend tax credit
- Interest — from GICs, bonds, and savings, fully taxable at your marginal rate, the least efficient of the three
Asset location
Because interest is taxed most heavily, interest-bearing holdings generally belong inside registered accounts where the tax is sheltered. Investments expected to generate capital gains are comparatively efficient in a non-registered account, since you control when the gain is realised.
One practical advantage worth knowing: capital losses in a non-registered account can be used to offset capital gains, carried back three years or forward indefinitely. A loss inside a TFSA or RRSP is simply lost, with no tax benefit at all.
Worth checking before you decide
- Keep records of your adjusted cost base, since you need it to calculate gains correctly at sale
- Consider holding interest-bearing investments in registered accounts first
- Non-registered assets can be used as loan collateral, unlike registered accounts
- Distributions from mutual funds and ETFs are taxable each year even when reinvested
Common questions
Should I fill my TFSA and RRSP before opening one of these?
Usually, yes. Registered room shelters growth from tax entirely, so it is generally used first — though a non-registered account can make sense earlier if you need access to funds without disturbing a long-term plan.
When do I pay tax on the growth?
Interest and dividends are taxed in the year received. Capital gains are only taxed when you actually sell, which gives you some control over the timing.
Important
This page provides general information only and is not personalized financial, tax, or legal advice. Product features, availability, and eligibility vary by provider. Figures shown are for the 2026 tax/benefit year and are subject to change — book a conversation with Supriya to confirm what applies to your situation.
More in Saving & Investing
TFSA (Tax-Free Savings Account)
Growth and withdrawals are never taxed. $7,000 of new room for 2026, and unused room carries forward indefinitely.
Read moreRRSP (Registered Retirement Savings Plan)
Contributions are tax-deductible now and grow tax-deferred until withdrawal, typically in a lower bracket.
Read moreFHSA (First Home Savings Account)
An RRSP-style deduction going in, TFSA-style tax-free withdrawals coming out — for a first home.
Read moreRESP & Children’s Saving Plans
Government grants add up to $7,200 per child toward post-secondary education — only available inside an RESP.
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