Four guaranteed ways to grow your RRSP

No matter where you are in life or what your investment goals are, it always helps to have guaranteed investments in your RRSP. IC Savings offers one of the industry’s best RRSP Term Investments plus three other guaranteed growth investments.

RRSP Term Investments

Growth guaranteed. Secure, insured products that act as the backbone for many investment plans. Choose from one year to five-year terms at highly competitive rates. Interest on short-term deposits is paid at maturity. On one to five year terms, interest is compounded annually.

Variable Rate Savings RRSPs

Grow your investments more quickly. Interest is calculated on the minimum daily balance and compounded semiannually. Ideal for simplifying your life by making automatic weekly, bi-weekly or monthly investments.

RRSP loans at prime

Save money today and invest in your future. Make your retirement savings grow bigger and faster than you ever thought possible with loans as low as prime. These loan products are only available during the RRSP season, so be sure to ask how we can put your hard earned money to work for you.

With an RRSP loan you can maximize your RRSP tax deduction and use the tax refund to help pay off the loan. For some, it’s a great way to take control of their investments right away.

Marginal tax rate 40%
RSP loan amount $3,000
RSP loan interest rate over the term 4.5%
Loan term 12 months
Monthly loan payments $256.14
Tax benefit $1,200.00
Total loan interest over the term $73.63
Net benefit $1,126.37

For illustrative purposes only. Based on Prime at 4.5% RRSP "Top Up Loans” to maximize your deductions

Many Canadians aren’t able to maximize their yearly RRSP contributions. If you want to maximize your tax return, consider an IC Savings "Top Up Loan". For those who qualify, an IC Savings RRSP "Top Up Loan" makes it easier than ever to take advantage of your unused RRSP contributions with convenient repayment terms of up to 10 years.

Talk to us about the world of options available through IC Savings to build your RRSP. IC Savings staff can help you decide on the right mix of investments to suit your goals.

Often called Index-Linked GICs, these products offer you the opportunity to take advantage of gains in the stock market index but without the drops. Your gains can be as high as 30% on some funds but the downside never drops past "0%". Your principal investment is guaranteed. Plus, your principal is DICO insured for up to $100,000. Returns are based on the performance of the S & P and TSX 60 index. Security with possibilities for real growth.

Mutual Funds

Whether you’re looking to invest in Mutual Funds or are looking to transfer existing funds, you have access to over 1900 Mutual Funds through your Credential Asset Management Inc.. Consider Mutual Funds as a balanced approach to investing in the market.

The Family of Ethical Funds®

Invest in portfolios of stocks in companies who meet tough ethical standards. A family of 19 funds is available.

Get your RRSP going now

A Registered Retirement Savings Plan allows you to save for retirement while deferring income tax on current income. Contributions are tax deductible and the income earned is tax sheltered.

If you are a Canadian taxpayer, 69 years of age or younger; and you have earned income or special income, you are eligible to open an RRSP. Nonresidents who pay Canadian income taxes also qualify.

Spousal contributions

As a wage earner, you may also contribute to an RRSP in the name of your spouse and deduct the amount from your own taxable income.

Your RRSP plan is insured

At IC Savings Term Investments in your RRSP plan are fully insured up to $100,000 per contract.

For further information on deposit insurance coverage, please ask for a brochure at the credit union, or call DICO at 1 800 268-6653 or www.dico.com.

It pays to start investing early

Start investing at age 30 40 50
Years to save 35 25 15
Total value of investment ($100/month) $215,714 $91,529 $33,994
Total value of investment ($200/month) $431,481 $183,057 $67,989
Total value of investment ($300/month) $647,222 $274,586 $101,983

Savings to age 65. Assumes an investment of $100, $200 or $300 per month and an average annual compound rate of return of 8%. Assumes investment is held in an RRSP. Contribute monthly and watch your RRSP grow faster

Simplify your investing today. Avoid the RRSP rush by making regular contributions every month. Plus, get the benefits of a whole year of investing. The best way to accelerate your RRSP is to automatically contribute weekly, bi-weekly or monthly from your savings or chequing account. After a couple of contributions you won’t notice the difference and you’ll be compounding your earnings monthly instead of just getting the tax advantages with a one-time contribution at the end of the year.

You can make contributions for as little as $25 per month. A little adds up to a lot. For example: $100 per month, deposited for 35 years and receiving interest of 8% will amount to an amazing $215,714.00.

Questions about RRSPs? We're here to help.