Bonus-less taxes to pay!

If you have a guaranteed investment certificate (GIC), it is better to put it in the RRIF portion of your portfolio in order to reduce your income tax. When you put your savings, which are more heavily taxed, in your RRIF, you are taxed only on withdrawal.

However, investing in a mutual fund with dividends will yield better returns if the investment is made in the non-registered part of your portfolio, as dividend income is taxed less than interest income.