What Is an Cash Unregistered Accounts?
A Canada‑only account built to help first‑time home buyers save faster.
TL;DR:
An unregistered (cash) account is a standard investment account with no contribution limits or special tax shelter. It’s flexible but taxable.
What is a cash (unregistered) account?
A cash or unregistered account is a regular investment account that isn’t tax‑sheltered. Unlike TFSA or RRSP accounts, there are no contribution limits, but investment growth is taxable.
It’s often used after you’ve maxed out tax‑advantaged accounts, or for goals where you want flexibility.
How it works
You can hold the same types of investments you would in other accounts (ETFs, stocks, bonds, cash), but any interest, dividends, or capital gains can be taxed.
Why people use it
- No contribution limits
- No withdrawal restrictions
- Flexible access to money
- Good for larger goals after registered accounts are full
The trade‑off
The trade‑off is taxes. Because growth isn’t sheltered, your returns may be lower after tax compared to a TFSA or RRSP.
When it makes sense
- You’ve already maxed out TFSA/RRSP/FHSA
- You need flexibility with withdrawals
- You’re investing for goals where account restrictions are a problem
Common mistakes
- Using it before registered accounts
- Ignoring the tax impact
- Not tracking capital gains properly
Your next step
If you’re considering an unregistered account, check your registered room first and plan for taxes on any growth.