Save for retirement and max out your tax benefits with a Registered Retirement Savings Plan (RRSP). RRSPs have almost limitless potential. Whether you're looking for a registered term deposit, mutual funds, stocks, or bonds, this is a great (and possibly the best) place to start.
When it comes to your money, you should have every option at your fingertips. Choose from a range RRSP options and personalize your savings to hit your goals.
Do you maintain higher balances in your RSP Savings, but don’t want the funds locked in? Then the RSP Variable is the option for you.
With more than 4,000 mutual funds available to Canadian investors, a team of investment analysts at Aviso Wealth Inc. have developed a proprietary selection process to assess these funds for you - with a resulting Aviso Wealth Focus List of up to 40 of the highest quality funds.
We're also proud to provide you access to NEI Investments, a socially responsible family of mutual funds. With these funds, you can rest assured that your money is not only working hard for you, but also for the environment and community.
Mutual funds are offered through Credential Asset Management Inc. Mutual funds and other securities are offered through Credential Securities, a division of Credential Qtrade Securities Inc. Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. Please read the prospectus before investing. Unless otherwise stated, mutual fund securities and cash balances are not insured nor guaranteed, and are not covered by the Canada Deposit Insurance Corporation or by any other government deposit insurer that insures deposits in credit unions. Their values change frequently and past performance may not be repeated. Credential Securities is a registered mark owned by Aviso Wealth Inc. Credential Asset Management Inc., Credential Qtrade Securities Inc. and Northwest & Ethical Investments L.P. are wholly owned subsidiaries of Aviso Wealth Inc.
NEI Investments is a registered trademark of Northwest & Ethical Investments L.P. (“NEI LP”). Northwest & Ethical Investments Inc. is the general partner of NEI LP and a wholly-owned subsidiary of Aviso Wealth Inc. (“Aviso”). Aviso is the sole limited partner of the NEI LP. Aviso is a wholly-owned subsidiary of Aviso Wealth LP, which in turn is owned 50% by Desjardins Financial Holding Inc. and 50% by a limited partnership owned by the five Provincial Credit Union Centrals and the CUMIS Group Limited.
At YNCU, we offer flexible RRSP loan options to assist you in making your maximum RRSP contribution.
Our RRSP loan options include a quick approval process with a flexible repayment plan.
See how an RRSP loan can make financial sense for you.
| RRSP Loan |
Interest Rate*
|
Total Interest Paid on Loan** |
RRSP Term Deposit at Maturity*** |
| $2,000 | 4.00% | $44 | $2,553 |
| $4,000 | 4.00% | $87 | $5,105 |
| $10,000 | 4.00% | $218 | $12,763 |
* Tables are based on an interest rate of 4% for illustrative purposes only.
** Loan term is one year, payments made monthly.
*** Maturity value after 5 years, at 5%, pre-tax. Figures rounded to the nearest dollar.
When reviewing your RRSP needs, one of the most important things to consider is how you and your spouse's income will be taxed after retirement.
If one spouse will be in a higher tax bracket in retirement, as much of the RRSP funds as possible should be accumulated in the name of the spouse who will be in the lower bracket. The income eventually created from the funds will then be taxed at that spouse's lower tax rate.
To set up a spousal RRSP, your spouse applies for a plan in his or her name, even though your spouse may not have any earned income. Although you make the contributions to the plan, the assets of the plan belong to your spouse.
Even if you are over 71 years of age, you can contribute to an RRSP for your spouse until the end of the calendar year in which your spouse turns 71.
If your spouse also wishes to contribute to an RRSP based on his or her own income, a plan separate from the spousal plan is strongly recommended.
Creating RRSP funds in both spouses' names will ensure that both of you can qualify for the Pension Income Credit by age 65.
Take advantage of the tax benefits that come with opening and contributing to an RRSP, including tax deferral and tax-free growth.
The contributions you make to your RRSP are tax deductible, reducing your taxable income.
Your RRSP contributions offer a deferral of tax because the government allows you to push a portion of your taxable income to a future year.
The income earned in an RRSP is tax sheltered. This means that the investments inside your RRSP will not be taxed as they grow each year. Over time, this significantly increases your earnings.
Taxes on your RRSP investments are not paid until you withdraw funds.
By that time you may be retired and your annual income may likely be much less.
Compound interest is interest which is calculated not only on the initial principal investment, but also the accumulated interest of prior periods.
Since 100% of the earnings can be reinvested, the growth of your RRSP increases rapidly over the years.
For example, say you put $100 per month into an RRSP. That's $1,200 per year, and thanks to the first year's interest, this quickly becomes $1,243.49.
In 10 years, you've built yourself a tidy sum of $18,012.42. But it gets better. Thanks to tax-sheltered interest earnings, your RRSP is now actually making more money than you are putting in.
You've doubled up! Just take a look at the chart, and you'll see how fast the amount builds up over 10, 20, 30, and 40 years.
| Year |
Your Annual Deposit |
Interest Earned This Year |
Your RRSP at the End of the Year |
| 1 | 1,200.00 | 43.39 | 1,243.39 |
| 2 | 1,200.00 | 142.86 | 2,586.25 |
| 3 | 1,200.00 | 250.29 | 4,036.54 |
| 4 | 1,200.00 | 366.31 | 5,602.85 |
| 5 | 1,200.00 | 491.62 | 7,294.47 |
| 6 | 1,200.00 | 626.95 | 9,121.41 |
| 7 | 1,200.00 | 773.10 | 11,094.51 |
| 8 | 1,200.00 | 930.95 | 13,225.46 |
| 9 | 1,200.00 | 1,101.43 | 15,526.89 |
| 10 | 1,200.00 | 1,285.54 | 18,012.43 |
| 11 | 1,200.00 | 1,484.38 | 20,696.81 |
| 12 | 1,200.00 | 1,699.13 | 23,595.94 |
| 13 | 1,200.00 | 1,931.06 | 26,727.01 |
| 14 | 1,200.00 | 2,181.55 | 30,108.56 |
| 15 | 1,200.00 | 2,452.07 | 33,760.63 |
| 16 | 1,200.00 | 2,744.24 | 37,704.87 |
| 17 | 1,200.00 | 3,059.78 | 41,964.65 |
| 18 | 1,200.00 | 3,400.56 | 46,565.21 |
| 19 | 1,200.00 | 3,768.61 | 51,533.81 |
| 20 | 1,200.00 | 4,166.09 | 56,899.91 |
| 21 | 1,200.00 | 4,595.38 | 62,695.29 |
| 22 | 1,200.00 | 5,059.01 | 68,954.30 |
| 23 | 1,200.00 | 5,559.73 | 75,714.03 |
| 24 | 1,200.00 | 6,100.51 | 83,014.54 |
| 25 | 1,200.00 | 6,684.55 | 90,899.10 |
| 26 | 1,200.00 | 7,315.32 | 99,414.41 |
| 27 | 1,200.00 | 7,996.54 | 108,610.95 |
| 28 | 1,200.00 | 8,732.26 | 118,543.22 |
| 29 | 1,200.00 | 9,526.85 | 129,270.06 |
| 30 | 1,200.00 | 10,384.99 | 140,855.06 |
| 31 | 1,200.00 | 11,311.79 | 153,366.85 |
| 32 | 1,200.00 | 12,312.74 | 166,879.59 |
| 33 | 1,200.00 | 13,393.76 | 181,473.34 |
| 34 | 1,200.00 | 14,561.26 | 197,234.60 |
| 35 | 1,200.00 | 15,822.16 | 214,256.76 |
| 36 | 1,200.00 | 17,183.93 | 232,640.69 |
| 37 | 1,200.00 | 18,654.64 | 252,495.33 |
| 38 | 1,200.00 | 20,243.02 | 273,938.35 |
| 39 | 1,200.00 | 21,958.46 | 297,096.80 |
| 40 | 1,200.00 | 23,811.13 | 322,107.93 |
The above example is based on an 8% annual rate of return and is used for illustration purposes only. Actual returns may vary.
Teach your old money new tricks. Convert your RRSP into an RRIF.
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Your Neighbourhood Credit Union (YNCU) is a licensed credit union operating in, and under the laws of, the province of Ontario. Eligible deposits in registered accounts have unlimited coverage through the Financial Services Regulatory Authority (FSRA). Eligible deposits (not in registered accounts) are insured up to $250,000 through the Financial Services Regulatory Authority (FSRA) .
