Deposit Services – Registered Plans

 

 

Retirement Savings RRSP.  A Registered Retirement Savings Plan is a government-approved plan through which you save money for your retirement years. Your contributions, within limits, are tax deductible, and the income earned is tax sheltered. You can have any number of plans. LIRA.  RRSP funds that have been transferred from a pension plan are subject to pension legislation. The funds may be in a Locked-in RSP or Locked-in Retirement Account (LIRA), depending on the province. You may be restricted to purchasing only life annuities with these funds; and under your former pension plan, there may be a minimum age requirement for such purposes.

Retirement Income Options (RIO) When you retire or reach age 71, whichever comes first, your RRSPs will need to be converted to a retirement income option. RRIF.  Registered Retirement Income Fund registered with CRA designed to provide payments to you, subject to an annual minimum amount. Best suited for people who want to make their own decisions (subject to government limitations) regarding income or if estate preservation is important. SK-MB RRIF.  Can be opened if your pension money is in a locked-in retirement account (LIRA) or a registered pension plan (RPP) governed by the Saskatchewan or Manitoba Pension Benefits Act, or if you have an existing LIF or LRIF contract. LIF. A Life Income Fund is very similar to a regular RIF. A LIF is a provincially regulated plan that allows you to maintain full control of your investment choice, while allowing the flexibility of withdrawing funds within prescribed limits, as you require.

Tax Free Savings Account TFSA.  Allows taxpayers to earn investment income tax free. TFSAs are available to all Canadian residents 18 years of age and older who hold a valid Social Insurance Number (SIN). There is no maximum age limit and there are no restrictions on the way TFSA funds are used. These accounts allow taxpayers to set money aside in eligible investments and watch those savings grow tax free throughout your lifetime. All income levels and all walks of life can benefit from a TFSA.

Education Savings RESP. An RESP assists you in saving for your child’s education. Individual and family plans are available. Income earned within the plan is tax-sheltered until it is withdrawn for post-secondary education and is taxable to the beneficiary. In addition, the Government of Canada will help you with savings incentives including the Canada Education Savings Grant (CESG) and the Canada Learning Bond (CLB). Once a student is enrolled in a post-secondary institution, payments may be withdrawn from the RESP for education-related expenses. Learn more about RESPs, CESG or CLB by contacting your Advantage Credit Union branch, or visit the following websites: www.hrsdc.gc.ca or www.canlearn.ca.

 

Registered Products

 

Minimum Deposit is $1000 except where noted.

v      RRSP/LIRA/RRIF/SK-MB RRIF/LIF eligible Investor Savings. Offers tiered daily interest compounding and paid semi-annually. No minimum deposit or balance is required.

v      TFSA eligible Tax Free Savings Plan. Offers a flat daily interest compounding and paid semi-annually. No minimum deposit or balance is required.

v      RRSP/LIRA/RRIF/SK-MB RRIF eligible Money Market.  For those wanting maximum return for a short term. Non-redeemable terms available from 30 to 365 days. Minimum deposit is $100,000.00.

v      RRSP/LIRA/RRIF/SK-MB RRIF/TFSA eligible Fixed.  For those wanting interest income in a secure, guaranteed investment. 12 to 60 months
non-redeemable terms available.

 

The following are only available only at specified times during the year:

v      RRSP/LIRA/RRIF/SK-MB RRIF/LIF eligible Premium.  Long-term investment with 1 to 5 year terms for those wanting a secure guaranteed investment and rate of return.

v      RRSP/LIRA/RRIF/SK-MB RRIF/LIF/TFSA eligible Hooked to Prime. 
Non-redeemable 1 to 5 year guaranteed terms available. Interest rate is linked to changes in the prime interest rate. As prime rate changes, the annual interest rate is automatically adjusted. For individuals that want term deposit features but the flexibility of higher rates of interest as Prime Rate increases.

v      RRSP/LIRA/TFSA eligible Index and Equity Linked.  Index-Linked investments are tied to the average monthly performance of a stock index, such as S&P 500 Index®. The investment stays at Advantage Credit Union, which means your principal is guaranteed. So even if the index doesn't perform well before its maturity, you'll still get your principal back in full! If the index does perform well, you'll receive an interest payment at the investment's maturity date.

 

Take Tenâ RRSP Loans

Available for your unused contribution room as well as for the current year’s contribution. Loans are available as low as prime rate.

 

RESP eligible products

§      Variable Savings. Offers tiered daily interest, compounding and paid semi-annually. No minimum deposit or balance required.

§      Fixed. 1 to 5 year non-redeemable terms for those wanting interest income in a secure, guaranteed investment. Minimum deposit is $500.

 

* Credit Union Deposit Guarantee Corporation guarantees to all depositors, repayment in full of all deposits in Saskatchewan credit unions. Your principal, in an index-linked term deposit is fully guaranteed. Because the return these deposits realize is linked to the performance of a stock market index, the return cannot be guaranteed until it has been deposited to the credit union. 

 

 Select the following links for daily return information, current company composition and overviews of the process for re-weighting:

 

 

 

 “Standard & Poor’s®” and “S&P®” are trademarks of the McGraw-Hill Companies, Inc. “TSX” is a trademark of the Toronto Stock Exchange. These marks have been licensed for use by Credit Union Central of Saskatchewan. The Product(s) is/are not sponsored, endorsed, sold or promoted by Standard & Poor’s or the Toronto Stock Exchange and neither party makes any representation or warranty regarding the advisability of investing in the Product.