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Registered Retirement Savings Plan (RRSP)

A Registered Retirement Savings Plan (RRSP) is the key staple tool for retirement savings.  Contributions are made in years of robust employment earnings, the total of which is sheltered from federal income taxes until withdrawn in retirement years, when individuals’ taxable income is generally lower.  During the interim, while funds are held on deposit in the Bayview RRSP, they can be invested to earn interest.
 
 
PRODUCT FEATURES: 
  • Your contributions are tax deductible. (up to federally mandated contribution limit)
  • Interest earnings are not taxable until withdrawn.
  • Compound interest on pre-tax interest means your retirement savings can grow quickly.
  • No minimum deposit and no administration fees.
  • You can contribute to your Bayview RRSP until 71 years of age.
  • Automatic contribution available: You advise our Bayview staff of amount and frequency (weekly, bi-weekly, monthly) and we will set up your regular RRSP contribution to be automatically debited from your Bayview account. 
BAYVIEW RRSP TYPES: 

  • 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.

Bayview Credit Union can help you with all your retirement needs and explain the Retirement Savings Plan in more detail.  Contact us today and ask about these other key RRSP options:
  • Spousal RRSP
  • Group RRSP
  • Home Buyer’s Plan
  • Lifelong Learning Plan
  • Transferring an RRSP from another financial institution

 

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