Registered Products
- Registered Retirement Savings Plan (RRSP)
- Registered Retirement Income Plan (RRIF)
- Registered Education Savings Plan (RESPs)
Registered Retirement Savings Plan (RRSP)
Book an appointment with one of our financial planners now, or get started with our Investment Calculator.
Registered Retirement Savings Plans (RRSPs) are designed to save for retirement. RRSPs provide up to a 50% tax deduction on contributions, resulting in more taxes back or less taxes owing. You don’t pay interest until your funds are withdrawn, which is usually after retirement, when your income and tax rates are lower!
RRSPs should be considered if you’re over 18, earn income, and haven’t retired yet, especially if you want to maintain the same standard of living during retirement. There are a variety of ways to invest in an RRSP:
- Term Deposits guarantee a rate of return over a period of time. Interest is compounded and rates vary based on length – from 30 days to 5 years
- Mutual Funds are offered through Q-Trade, our Online Brokerage, including cash, treasury, bills, bonds, and equities.
Each year you have a maximum contribution limit, which includes any unused contribution limits from previous years. To figure out your limit please refer to your Notice Of Assessment from the Canada Revenue Agency.
Rather than waiting until the end of the tax year to find the money to make a single lump-sum investment, consider scheduling recurring contributions from your account. You can also use up to $25,000 of your RRSPs for your down payment through the Government of Canada’s Home Buyer’s Plan. This can significantly decrease the amount of your mortgage, resulting in less interest paid.
Spousal RRSPs
Invest as much of your RRSP as possible in the name of the spouse who will be in the lower bracket at retirement. Any income created will be taxed at the lower tax rate. A Spousal RRSP also allows the contributor to reduce their taxable income by the amount of the contribution.
RRSP Loans
It’s almost the end of the tax year and you don’t have the cash available to top up your RRSP contribution. No problem, we offer RRSP specific loans for just this situation, including Lines Of Credit, Term Loans and Extended Repayment Term Loans.
Working with a Bay Investment Officer, we can come up with the ideal formula to help you meet all of your retirement goals. You can choose to put your money in a variable rate account, embrace the guarantee of a fixed rate term or blend your investments across a number of products that grow and change as you age.
Benefits
- Contributions to your RRSP are tax deductible
- Pay no tax on interest or other monetary growth until the day your funds are withdrawn
- A variety of investment options depending on your personal preferences and needs
- Complete deposit insurance on term deposits
- Pre-authorized contribution programs make it easy to build a strong retirement fund
Registered Retirement Income Plan (RRIF)
Transferring your RRSP to a RRIF helps you to continue to grow your nest egg and defer your tax burden, while also offering you the flexibility and security you need to enjoy your retirement. There is no minimum required age for the purchase of a RRIF, except with most Locked-In Retirement Accounts (LIRA) (funds transferred from a former pension plan). However, you must transfer any RRSP, LRSP & LIRA amounts to a retirement income option before the end of the year in which you turn 71.
You have a choice between variable rate and fixed term accounts, and you can continue to defer tax while you access your retirement savings. Payments for both account types are made to you based on a minimum payment formula set by the government.
Registered Education Savings Plan (RESPs)
Start investing as early as possible. A Registered Education Savings Plan (RESP) is a special savings account to help your family save for your child’s post-secondary education.
Through the Canada Education Savings Grant and the Canada Learning Bond, the Government of Canada matches 20% of your first $2,500 of annual contributions. Based on your household income, you could be eligible for an even higher matching rate – up to 40% of your first $500 matched annually.
RESPs are available through a variety of investment options, including fixed term deposits, variable rate savings accounts.
Get started with this Investment Calculator.
RESP Tips
If you’re receiving money from the government each month for having children, consider putting it directly into a RESP. Make sure your child has a Social Insurance Numbers before opening an RESP.
Benefits
- Your RESP can help fund most Canadian post-secondary programs
- No tax charged on income earned with your RESP until the funds are withdrawn
- Beneficiaries 17 or younger receive the Canada Education Savings Grant – equal to 20% of the annual contribution*
- Additional grants are also available for qualifying beneficiaries
| Restriction | Details |
|---|---|
| Contribution maximum | Lifetime maximum of $50,000 per beneficiary; no annual maximum |
| Contribution age limit | Final contribution must be made by the end of the 31st year after the year the plan is entered into for all plans, and in addition before a beneficiary's 31st birthday for a family plan |
| Plan age limit | RESP must be collapsed before December 31st of the 35th year following the year the plan is entered into |
| Over-contribution penalty | One percent per month of the over-contribution amount at the end of the month |
| Canada Education Savings Grant (CESG) | 20 percent of the annual contribution to an RESP on the first $2,500 contributed each year per beneficiary, untl the end of the year in which the beneficiary turns 17, up to a maximum of $7,200; the CESG does not count towards the $50,000 contribution maximum; note the governemnt has enhanced the CESG for low income families' |
| Refund of contributions | Subscribers can withdrawal their contributions tax-free at any time; however, the plan may have to repay CESG |
|
Eductational assistance payments (EAPs) |
Generally, $5,000 maximum payout for full-time students with the first 13 weeks of a qualifying eductation program; no limits after 13 weeks; generally, $2,500 maximum payout for part-time students provided certain conditions are met. |
