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RRSPs

Save for the future. Tax free.

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.

 

Investment Options

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.

Fixed Rate RRSP

  • Enjoy the security of a guaranteed rate.
  • 1 year redeemable terms available.
  • 1 to 5 year non-redeemable terms available.
  • Enjoy the security of 100% guaranteed principal protection.
 

 

RSP Variable Savings

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.

 

 

Step-Up RRSP

  • Enjoy both security and growth with the guaranteed escalating rate of a Step-Up RRSP.
  • 3 and 5 year terms available.
  • Redeemable on the anniversary each year.
  • Enjoy the security of 100% guaranteed principal protection.
 

 

Index-Linked Term Deposits

  • Offers the potential for a higher return. 
  • 5 year non-redeemable term available. 
  • Enjoy the security of 100% guaranteed principal protection.
 

 

Mutual Funds

With more than 4,000 mutual funds available to Canadian investors, a team of investment analysts at Credential® have developed a proprietary selection process to assess these funds for you - with a resulting Credential Platinum List of 40 best funds.

We're also proud to provide you access to Ethical Funds®, 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, 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.

 

RRSP Loans

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.

 

Spousal RRSPs

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.

Tax Brackets

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.

Setting up a Spousal RRSP

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.

Contribution Age Limit

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.

Separate RRSP Plans

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.

Pension Income Credit

Creating RRSP funds in both spouses' names will ensure that both of you can qualify for the Pension Income Credit by age 65.

 

Tax Benefits

Take advantage of the tax benefits that come with opening and contributing to an RRSP, including tax deferral and tax-free growth.

Tax Deferral

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.

Tax Free Growth

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

Compound interest is interest which is calculated not only on the initial principal investment, but also the accumulated interest of prior periods.

Grow your Money

Since 100% of the earnings can be reinvested, the growth of your RRSP increases rapidly over the years.

Turn $100 a month into over $320,000

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.

 
 
 

YOUR RETIREMENT PLANNING GUIDE

You’ve worked hard all your life. Now it’s time to let your money work for you. Understand your investment options to plan a clear path to a secure retirement.

 

 

UNDERSTANDING ESTATE PLANNING

It’s not exactly pleasant to think about, but it’s important to have an up-to-date will and estate plan in place to resolve financial affairs after your death.

 

 

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