There are plenty of bank savings account options in Canada! Stay on top of the best plans right here.
Latest News
How to open an RDSP Dec 19th
Jason Heath gets a lot of calls from clients about registered disability savings plans (RDSPs). Many are interested in setting up the plan, a tax-deferred savings vehicle for people with disabilities, because they’ve heard about the generous grants they can qualify for. The Canadian government wil.... More »
You opened an RESP—now what? Nov 27th
As many Canadian parents and grandparents know, a registered education savings plan (RESP) is a powerful savings tool. Although you can create a college or university fund for your child in other ways, such as a bank account or a tax-free savings account (TFSA), they don’t offer the same valuable .... More »
TFSA contribution room calculator + MORE Jan 16th
Find out your current tax-free savings account (TFSA) contribution limit by using this calculator.
TFSA is a bit of a misnomer. While you can use it for straightforward savings, think of it more accurately as an investment holding account to store things like exchange-traded funds .... More »
Tech Entrepreneur Lauryn Vaughn Is Changing the Resale Fashion Game + MORE Jul 17th
My entire career has been about using technology to sell upscale consignment clothing. But my starting point was in traditional fashion: When I was a commerce student at the University of Calgary, I landed an internship with the designer Paul Hardy. That was my introduction to retail behind the scen.... More »
CPP vs RRSP: Can you transfer your CPP to an RRSP? Dec 26th
I’m 40 years old. Can I transfer my accumulated CPP to an RRSP?
—Franco
I am going to cut to the chase here, Franco. You cannot transfer your Canada Pension Plan (CPP) to a registered retirement savings plan (RRSP). Some pensions can be transferred to an RRSP, and there are ways .... More »
Should I withdraw from my RRSP to contribute to a TFSA?
– moneysense.ca
I am 52 years old and have $200,000 in my RRSP and $5,000 in my TFSA. I have a lot of unused TFSA room, but no new money to contribute. Does it make sense to withdraw some money from the RRSP each year, and then move it over to the TFSA? I realize the tax implications, so perhaps the best thing to do is always withdraw under $5,000 so I pay only 10% tax? My annual income is about $75,000. — Alex
There are situations when it might make sense to withdraw money from your RRSP and recontribute it to your TFSA. But these are rare, and Alex, I don’t think this is one of them.
You recognize that RRSP withdrawals are taxable, but I think you have underestimated the amount of tax you will pay. When you make an RRSP withdrawal of $5,000 or less, your brokerage is required to withhold 10% for income taxes. (The withholding tax rate is 20% on withdrawals between $5,001 and $15,000, and 30% on larger amounts. Rates are higher in Quebec.) But that doesn’t mean your total tax bill for the withdrawal is limited to 10%…
Why You and Your Partner Should Open a Spousal RRSP
– ratesupermarket.ca
The Canadian government offers plenty of incentives for long-term savers, including couples saving for retirement. Sure, both of you can still open your own individual Registered Retirement Savings Plans (RRSP). But if you are looking for a way to manage your tax bill as a couple, as well as build a bigger nest egg for your partner, spousal RRSPs can make a lot of sense. Here’s what you need to know about using this tool.
What is a spousal RRSP?
A spousal RRSP is a qualified retirement savings plan that you set up for your partner. You are able to make contributions to the RRSP, however, your spouse is the actual owner. The point of the spousal RRSP is to help you even out any gap in income between the two of you during retirement, while allowing you a tax break right now.
So you can contribute to the RRSP and receive the tax deduction today. During retirement, your partner withdraws the money and pays the income tax that results from the withdrawal.
Who would benefit from a spousal RRSP? Who wouldn’t?
You’ll likely get the best results from a spousal RRSP if there is a large disparity in income between you and your partner…
Want to find savings? Check your trash
– thestar.com
Diving into your garbage is a great way to find clues for where you could be saving money, writes Gail Vaz-Oxlade.
TFSA or RRSP? Which is more popular & why
– moneysense.ca
TFSAs win when it comes to flexibility. (Flickr)
Q. TFSA or RRSP, which one is more popular today—and why? – Phyllis D.
The RRSP marked its 50th-anniversary last year —but it looks like its Golden Age has already passed. While the RRSP still has more contributors than the TFSA, its lead is narrowing. According to StatsCan, the number of RRSP contributors aged 25 to 54, “declined by 16% from 2000 to 2013, from five million in 2000 to 4.2 million in 2013.” The dollar amounts are on the decline as well. RRSP contributions hit $30 billion in 2000 but fell to $22.5 billion by 2013.
A part of that decline can be blamed on the Tax-Free Savings Account, which was introduced in 2009. StatsCan says there was a slight decline in RRSP use over the last few years and that, “coincided with an increase in the number of individuals who contributed to a TFSA, from 2 million in 2009 to 3 million in 2013.”
Why does the TFSA have a leg-up? Flexibility is one thing. The RRSP was designed for retirement savings, while the TFSA works well as a place to save for retirement and anything else—a dream vacation, a new car, or a house down payment…
Q. TFSA or RRSP, which one is more popular today—and why? – Phyllis D.
The RRSP marked its 50th-anniversary last year —but it looks like its Golden Age has already passed. While the RRSP still has more contributors than the TFSA, its lead is narrowing. According to StatsCan, the number of RRSP contributors aged 25 to 54, “declined by 16% from 2000 to 2013, from five million in 2000 to 4.2 million in 2013.” The dollar amounts are on the decline as well. RRSP contributions hit $30 billion in 2000 but fell to $22.5 billion by 2013.
A part of that decline can be blamed on the Tax-Free Savings Account, which was introduced in 2009. StatsCan says there was a slight decline in RRSP use over the last few years and that, “coincided with an increase in the number of individuals who contributed to a TFSA, from 2 million in 2009 to 3 million in 2013.”
Why does the TFSA have a leg-up? Flexibility is one thing. The RRSP was designed for retirement savings, while the TFSA works well as a place to save for retirement and anything else—a dream vacation, a new car, or a house down payment…
Want to find savings? Check your trash
– thestar.com
Diving into your garbage is a great way to find clues for where you could be saving money, writes Gail Vaz-Oxlade.