A tax-free savings account (TFSA) is an investment savings account, in which you will not be taxed on your earned interest. You can use it to invest in mutual funds and other direct investments. There are no available tax deductions for contributing, but in 2017 you can put aside up to $5500 in your TFSA account without incurring taxes on capital gains.
A registered retirement savings plan (RRSP) is an investment account for which you receive a tax credit for what you put aside for the future. You will be charged tax on the savings when you withdraw your funds. Try to contribute to your RRSP as early as possible; investments made before March 1 of this year can be counted towards this year’s taxes.