Registered Retirement Savings Plan (RRSP)

This plan was designed as a method to enable saving for retirement. An individual up to the age of 69 can contribute to a plan and deduct the amount deposited from their taxable income for a given year. An individual can benefit from an RRSP whether they are self-employed; work at a company that does not offer a pension plan; or work for an employer who has a registered pension plan. All of the RRSP savings along with the accumulated interest are sheltered from taxation until they are withdrawn for personal use. Contribution limit for 2006 is 18% of earned income up to the maximum of $ 18,000. Earned income is defined as wages, salaries, commissions, rental income, alimonies etc.

Money saved can be invested in:

a. A variable rate plan

b. A fixed rate plan in terms ranging from 1-5 years.

Our Credit Union does NOT charge any fees for administration and deposits to your RRSP.

Each individual RRSP contract is insured by the Deposit Insurance Corporation of Ontario (DICO) up to $100,000.

Registered Retirement Income Fund (RRIF)

This plan is a continuation of the RRSP. According to regulations, the RRSP and payments to it must stop when the taxpayer turns 69. At that point, the RRSP should be converted to a RRIF and a gradual withdrawal of money from that fund should start. The minimum annual amount to be withdrawn in the form of a pension depends upon the type of RRIF. The whole program is designed to defer the income tax burden. In the event of the taxpayer's death, the RRIF can be transferred to a spouse (subject to qualifications), or the balance of the RRIF can be left for the beneficiary or estate.

Each individual RRIF contract is insured by the Deposit Insurance Corporation of Ontario (DICO) up to $100,000.

T-Bill accounts

These are special accounts that pay higher interest on higher amounts. The interest depends upon the amount of money deposited within $5,000, $10,000, $25,000, $50,000 and higher brackets.