Variable Rate RRSPs: Similar to a savings account - interest rates increase as your balance increases. Although RRSPs are designed to be used as a long term retirement savings tool, this is a good savings solution if you think you may need access to your funds soon, or if you are not comfortable with locking in for a fixed term. Interest is calculated on the minimum monthly balance and paid twice annually, in June and December.
Fixed Rate RRSPs: Similar to a Term Deposit or Guaranteed Income Certificate (GIC). You choose a fixed term of 1 to 5 years and the interest rate is guaranteed for that term. This is an excellent choice if your goal is to maximize growth of your retirement fund. Interest is compounded and paid annually.
Index-Linked RRSPs: Participate in stock market gains without risking your principal by investing your RRSP savings into an Index Linked RRSP. This GIC investment (minimum $500 investment) offers the potential of a higher return than fixed rate deposits and the security of your principal is 100% guarateed by linking your investment to the performance of the S&P®/TSX® 60 Index with no fees or commissions (participation rates vary each issue). Investments are available in 3 and 5 year lengths so long as you will not turn 71 years of age before maturity.