Registered Retirement Savings Plans

Registered Retirement Savings Plan (RRSP)

Innovation Credit Union offers a variety of options for investing your RRSP. As with all of our deposits, there is a full guarantee through the Deposit Guarantee Corporation.

A Registered Retirement Savings Plan is a government approved plan that allows you to save money for your retirement. During your peak earning years you can invest to build your retirement fund while saving money on your taxes. Interest earned on these savings is not taxable until the funds are withdrawn. Any interest earned is compounded and the growth of an RRSP increases rapidly over the years.

Anyone who has "earned income" subject to Canadian taxation, including non-residents, may contribute to an RRSP. You can also make a part of or all of your contribution to a plan in your spouse's name. You as the contributor still benefit from the tax deduction. Limits to RRSP contributions are based on "earned income" of the previous year. You can also carry forward any unused portions. This information is on your Room Statement from the Canada Revenue Agency or you can obtain it by phoning 1-800-267-6999 and providing them with your Social Insurance Number.

Spousal RRSPs

Take advantage of income-splitting!
For married or common-law clients with uneven income and retirement savings, we recommend a Spousal or Common-Law RRSP to take advantage of income-splitting. The objective is to even out your incomes so you will be taxed more efficiently when it comes time to withdraw the income (and pay taxes on it) in retirement. The contributing spouse or common-law partner benefits from the immediate tax deduction while the plan holder (the annuitant) benefits from the growing retirement savings.

RRSP Products

Index-Linked Products

High Interest Savings RRSP

This variable RRSP is a deposit account where funds can be deposited and redeemed at any time with no penalty. The funds are not locked-in.

• Features:
  • No minimum deposit
  • No maximum balance
  • Interest is calculated daily and paid to the account at month end
  • Tiered interest structure as follows:

    -    $                   0           to $                  49,999.99
    -     $           50,000           to $                  99,999.99
    -     $          100,000           to $                249,999.99
    -     $          250,000           to $                499,999.99
    -     $          500,000           to $                999,999.99
    -     $       1,000,000           and over

  • Interest is paid on the entire balance in the corresponding tier
  • Interest rate is variable
  • Redeemable
  • No redemption penalty
  • Subject to withholding tax upon redemption
  • Able to inquire and transfer funds into the account through internet or telephone banking
    
    
• Benefits:
  • Safety of funds - deposits have unlimited guarantee
  • Flexibility of a variable RRSP with bonus of interest calculated daily and paid monthly
  • Liquidity - you can contribute and withdraw at anytime
  • Ease of movement to other products or withdrawals on short notice
  • Compounding - with compounding interest the amount of money in your plan will increase significantly over time
  • Able to access account through internet and telephone banking
    
    

Maximize your money by depositing your RRSP contribution monthly:
The interest earned is compounded, which means you will be earning interest on the interest! In the long run this can have a dramatic effect on your investment. We can help you benefit from the monthly deposit advantage, by automatically transferring funds from your account to an RRSP. It’s painless, and most of all it is EASY!

Non-Redeemable RRSP

• Features
  • 0 to 60 month term, inclusive
  • Interest calculated and paid at expiry for terms less than 365 days
  • Interest calculated and paid at maturity for account terms greater than 364 days
  • $100 minimum deposit
  • Interest rates are higher for longer termed investments and tiered as per amount invested as follows:

            - $                   100      to $      14,999.99
            - $               15,000      to $      39,999.99
            - $               40,000      to $      74,999.99
            - $               75,000      and over

• Non-redeemable
  

• Benefits
  
• Safety of funds – deposits have unlimited guarantee
• Simplicity
• Compounding – with compounding interest on terms greater than 364 days the amount of money in your plan will increase significantly over time
• Consistency – you know how much money any given investment will earn each year due to the fixed interest rate

High Interest Savings RRSP

The variable RRSP allows funds to be deposited and redeemed ar any time without penalty. The funds are not locked in.

• Features
  • No minimum deposit
  • No maximum deposit
  • Interest is calculated daily on the closing balance
  • Interest is paid to the account monthly
  • Tiered interest structure as follows:

            - $       0  to $999
            - $ 1,000  and over

• Interest paid on entire balance in the corresponding tier
• Interest rate is variable
• Redeemable at any time
  
  
• Benefits
• Safety of funds – deposits have unlimited guarantee
• Liquidity - you can contribute and withdraw at any time
• Ease of movement to other products or withdrawals on short notice

Maximize your money by depositing your RRSP contribution monthly:

RRSP loans

RRSP 1 Year Quick Loan

If you require additional funds for your RRSP this year, check out our RRSP 1 Year Quick Loan. This is a revolving loan you only need to apply for once, and once approved, you are pre-approved for future use so that you can automatically issue your own RRSP loan next year!.

• Features
  • Minimum credit limit of $1,000.00
  • Advances are for RRSP contributions only
  • Re-advances within the credit limit available
  • Floating rate – simple interest compounded annually
  • Repayment terms can be blended or non-blended
  • Blended payments are based on credit limit and not the balance. Payment is calculated to be paid within 12 months
  • Non-blended payment is a lump sum payment due within 1 year or less and monthly interest payments are NOT required
  • Maximum of a one year amortization

RRSP 10 Year Quick Loan

This product is great if you want to make your yearly RRSP contribution but require more time to make your RRSP loan payments. It is also great if you have a large amount of accumulated RRSP room that you would like to take advantage of this year. This is a revolving loan you only need to apply for once, and once approved, you are pre-approved for future use so that you can automatically issue your own RRSP loan next year!

• Features
  • Minimum credit limit of $2,500.00
  • Advances are for RRSP contributions only
  • Re-advances within the credit limit available
  • Floating rate – simple interest compounded annually
  • Repayment terms can be blended or non-blended
  • Blended payments are based on credit limit and not the balance. Payment is calculated to be paid within 12 months
  • Non-blended payment is a lump sum payment due within 1 year or less and monthly interest payments are NOT required
  • Maximum of a ten year amortization