- Minimum $500, non-redeemable
- A safe and important component of any investment portfolio
- Interest compounds on each anniversary date and notices are provided prior to maturity
Time goes faster than you think...
Saving for retirement can never happen too soon. A Registered Retirement Savings Plan (RRSP) is an essential part of a rounded portfolio that ensures you have a secure financial future. There are several types of investments can be held within an RRSP, such as Guaranteed Investment Certificates (GICs).
Tandia has a number of solid RRSP investment options available. We work with you to find the best fit for your needs.
Tandia has a range of RRSP products to meet all your financial needs.
RRSP TERM DEPOSITS - 1 TO 5 YEAR
RRSP TIERED SAVINGS ACCOUNT
- A registered savings plan account with no minimum deposit
- Tiered interest - the higher your balance, the higher your interest
- A great account to accumulate funds in through payroll deductions or automatic transfers
- Funds may be withdrawn/transferred at any time (subject to applicable withholding taxes)
PAY DAY RRSPS
- Minimum $1,000 commitment (savings goal)
- You can take as long as a 12 month period to accumulate your goal
- Funding of the RRSP account is paid by payroll deduction or automatic transfer from an account
- 1 year term interest is calculated on the daily balance and paid at maturity
SHORT TERM RRSP TERM DEPOSITS
- 3, 6 and 9 month terms, minimum $1,000, non-redeemable
- A good 'holding' vehicle for your investment while you wait to see if rates improve or to assist in timing deposit maturity dates to better meet your needs
INDEX LINKED RRSPS
About our Index Linked Term Deposits
An Index Linked Term Deposit presents a safe way to participate in Canadian Equity markets, with a return based on the average growth of the major market indices. Your principal is guaranteed, yet you can benefit from the potential for a higher return.
Features
- Minimum $500, non-redeemable
- No commissions, management or administration fees
- Index Linked Term Deposits are RRSP and TFSA eligible
- Deposits qualify for coverage by the Deposit Insurance Corporation of Ontario
STEP RRSPS
A Step Term Deposit is an excellent investment alternative in times of low interest rates, as you are assured that each year your interest will increase. As with all our term deposits, the principal and return is guaranteed and it qualifies for deposit insurance protection.
At Tandia Financial Credit Union, eligible deposits in registered accounts have unlimited coverage through the Financial Services Regulatory Authority (FSRA).
When is the RRSP contribution deadline?
You can contribute to your RRSP at any time, but to lower your income tax for the 2024 tax year, make your contributions no later than March 1st, 2025.
What is an RRSP?
An RRSP allows you to invest money during your peak earning years to build up a tax sheltered retirement fund.
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An RRSP plan is designed to encourage Canadians to save for their retirement.
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Contributions to an RRSP are tax deductible, meaning that when you make a contribution to an RRSP, you are reducing your taxable income by the amount of money you contribute to the plan.
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Each year you will receive a Notice of Assessment from Revenue Canada. You are allowed to contribute 18% of gross income plus any pension contributions to an RRSP.
5 tips for your RRSP
With the cost of living on the rise and government support declining, it's now more important that we start taking control of our financial futures. The key to saving for retirement is simply to start doing it.
1.) Start small
Small amounts quickly add up and help build good saving habits. Think about setting up regular payroll deductions, this way the money comes directly out of your pay before you can see it or spend it.
2.) Invest early
Invest early for compound growth. Investing in your RRSP well in advance of retirement means that your money has more time to benefit from tax-sheltered growth.
3.) Do the math
We’re all living longer and our standard of living keeps rising. Take the time to figure out if your retirement savings will give you the lifestyle you want. It's important to set a goal and know how much you will need.
4.) Put your tax refund to work
As tempting as it might be to spend your tax refund, reinvesting it will work to your long-term advantage of reaching your retirement goals.
5.) Speak with a Financial Advisor
Maintaining a regular savings and budgeting plan can be difficult. Having the right support from a financial advisor can help you stay on track in meeting your retirement goals.
Things to avoid with RRSPs
You want to avoid taking money from your RRSP. If you withdraw money from your RRSP while you're working you'll be highly taxed based on your marginal tax bracket because your RRSP money is considered income when you withdraw it. The idea of an RRSP is to withdraw these funds in your retirement years slowly when your tax rate is typically lower.
There are some special exceptions for when you can take money out of your RRSP such as buying your first home or going back to school. However, keep in mind - you do have to pay the money back into your RRSP - otherwise you'll end up being taxed.
Investing in Tomorrow with an RRSP
We all know that saving for the future and your retirement is important. But determining the best way to start and making sense of your options can feel overwhelming. Well, at Tandia we know all of the ins-and-outs of registered products and investments and can help you decide if an RRSP (Registered Retirement Savings Plan) is just what you need! Let’s dive in and learn more about this great option for your savings.
Is an RRSP for me?
Think of an RRSP as a safe spot to stash away your hard-earned money for your future self – kind of like a piggy bank with added tax benefits. Believe it or not, retirement age sneaks up faster than you may expect and the earlier you can get started on your savings, the better. An RRSP is a savings plan that allows you to save for retirement on a tax-deferred basis, allowing your cash to really grow! All you have to do is make the contributions (up to the allowable annual limit or your accumulated RRSP limit) and the Government throws in a sweet little tax break. Some added money in your pocket now, and money stashed away for your future. Now that’s a win-win!
When can I retire?
Each of us have unique savings and retirement goals. Working with an advisor to develop your personal plan is the best way to stay on track and take control of your own dreams for retirement.
What is your RRSP deduction limit?
Your RRSP deduction limit is calculated based on any unused room at the end of the preceding year plus the lesser of these two items: 18% of your earned income in the previous year OR the annual RRSP limit for that year.
What are the benefits of having an RRSP?
An RRSP presents an opportunity to grow your retirement savings. Contributions are tax deductible, and you can even borrow from your RRSP when purchasing your first home or paying for your education.
Is it worth putting money in an RRSP?
An RRSP is a great way to stay on track towards your retirement goals. A spousal RRSP may also reduce your combined tax burden. Start growing your nest egg, the earlier the better, to take advantage of compound interest on your hard-earned dollars.
Watch our RRSP vs TFSA video
and read our blog
Navigating the world of personal finance can sometimes feel like choosing between binge-worthy TV shows. In the realm of investment, two prominent players, RRSPs, and TFSAs, vie for your attention, offering distinct advantages tailored to your financial journey. Learn about the difference between the two options and find out the perfect fit to achieving your financial goals.
Do you have what you need?
Our Retirement Planning Calculators determines the amount of savings that you'll need to retire comfortably. By flagging any shortfalls or surpluses, the Calculator outlines the savings required to reach your financial goals for retirement.
Let's get started
With the right planning, retirement doesn't have to be scary. We are here to help you build your goals and ensure you have a strong and secure financial future. Visit a branch, book an appointment or call our Member Solutions Centre at 1-800-598-2891. Let us help you grow your wealth.
Why the Fingerprint?
Am I unique? We are here to tell you that yes you are and so are your finances! You may or may not have noticed a lot of our branding uses a fingerprint image. Well, that’s because we know how unique you truly are, and we want to make sure we treat your finances the same way.
Each person’s fingerprints are unique and at Tandia we realize your financial picture is as well. We want to celebrate your uniqueness and ensure we find the perfect fit of products and services that work for you.
Wealth Advice
Advice you can trust
Whether you’re saving for the future, preparing to buy your first home, or planning and protecting your estate. Tandia's suite of Wealth Service options can help you build a portfolio that’s tailored to your unique financial goals.
Listen to our Podcast
Listen to our weekly Podcast that answers all your burning questions about money. We’re here to make money more relatable, with take-action tips to help you create the life you want.
We will help you tackle those financial problems, look at your goals and help you define your financial journey. Start listening!
We are here for you
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