Interest PlusTM RRSP
Because every penny counts when you're trying to save money, the President's Choice Financial® Interest Plus Registered Retirement Savings Plan (RRSP) gives you a great interest rate without requiring a minimum balance. Plus it's risk-free because your principal and interest are guaranteed!
- Great rate that's better than the average of the big banks
- No risks, no fixed term, no fees or penalties for early withdrawals so your RRSP is always cashable
- No minimum deposit to open your account
- Set up automatic contributions to your RRSP - sit back and watch your money grow
- Access your account online, by phone or through mobile banking and all for free
How do I apply for this account?
If you bank with us†, sign in to your online banking or call 1-888-723-8881 to apply. For new customers, you can talk to a Personal Banking Representative at a PC Financial® pavilion near you.
- go toSign inplease be aware that the Sign In page is not ready for accessibility. Please call us at 1-888-723-8881 and we will be pleased to assist you
- go toFind nearest pavilion
|Daily Balance||Annual Rate (%)|
$0.00 and up
Rate subject to change. Interest is calculated on each day's closing balance and is paid into your account monthly.
A Registered Retirement Savings Plan is a great way to prepare financially for your future. Simply put, an RRSP is a registered savings plan that allows you to accumulate funds for retirement and help ensure you have the savings and income you need to live comfortably, travel or pursue whatever new dreams you choose once you leave the workforce.
A key part of planning for retirement is thinking about what you can do now to build your RRSP. The maximum amount you can contribute to an RRSP annually is 18% of your prior year's qualifying earnings (consult your Canada Revenue Agency Notice of Assessment for the current tax year's amount), less any applicable pension adjustment (or reversal) and plus any unused RRSP contribution from prior years.
An RRSP (Retirement Savings Plan) is a preferred way to invest for many Canadians because of its tax benefits:
Tax savings now: RRSP contributions reduce your taxable income, which may result in a tax refund which you can, in turn, put back into your RRSP (if contribution room is still available), or use however you choose.
Tax-sheltered growth: Investing in an RRSP has a much bigger impact on your savings than investing outside one because both the amount you contribute to your RRSP and the income it earns are sheltered from tax as long as the money stays in the plan. But remember, RRSP assets will be taxed when withdrawn from your plan at the marginal tax rate (your highest tax bracket) at that time. The rationale is that once you reach retirement you will probably be making less than you do today and likely will be taxed at a lower rate.
|Purpose||Designed to provide income after you retire.||Designed to help you save money for a wide range of goals − not just retirement.|
|Minimum/Maximum Age Requirement||No minimum age requirement to open, as long as you have earned income and filed a tax return. Must be closed by December 31 in the year you turn 71.||Must be 18 years of age to open. There is no maximum age restriction to close an account.|
|Tax Deduction||Contributions are tax-deductible, but when you withdraw any funds you must pay tax1.||Contributions are not tax-deductible, but all the interest and income earned is tax-free. Any money you withdraw is tax-free too2.|
|Contribution Limits||• Percentage of previous year's earned income, plus previously unused contribution room, less any pension adjustment.
• You can carry forward any unused amount to the following year or any year after that.
• Generally, amounts withdrawn cannot be re-contributed (other than under the Home Buyers' Plan or Lifelong Learning Plan).
|• The government has set a limit of $5,500 in 2013, plus any unused contribution room from previous years.
• The amount you can deposit is not based on income.
• Amounts withdrawn (excluding amounts withdrawn because of an over-contribution) may be re-contributed starting the year after the withdrawal.
|Over-contributions||• Over-contributions are assessed a 1% penalty per month3.||• Over-contributions are assessed a 1% penalty per month 4.|
|Interest Income||Not taxed until withdrawn.||Not taxed.|
|Withdrawals||Included in income and fully taxable at your marginal tax rate in the year withdrawn.||Not included in income and are tax-free. Any amount withdrawn (other than due to over-contribution) is added to contribution room the next year.|
|Government Benefits||Withdrawals are considered as income and may impact amounts you receive from income-tied government benefits or credits.||Withdrawals are not considered as income and do not impact amounts you receive from income-tied federal government benefits or credits.|
1Funds are taxable upon withdrawal. Interest Plus RRSP is not eligible for withdrawals through bank machine or INTERAC® Direct payment transactions. A transfer fee applies if you transfer funds to another financial institution, other than CIBC.
2Funds are not taxable even when withdrawn. Any withdrawals made from your account during the year will be added to your contribution room for the next calendar year. Transfers between Tax-Free Savings Accounts will leave your annual contribution room unchanged. The Tax-Free Interest Plus savings account is not eligible for withdrawals through bank machine or Interac® Debit transactions. A transfer go to fee applies if you transfer funds to another financial institution, other than CIBC.
3Transfers in are considered contributions unless the transfer is from another RRSP.
4Transfers in are considered contributions unless the transfer is from another Tax-Free Savings Account.
Fresh Financial Thinking®