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Registered Retirement Savings Plan (RRSP)
What's a Registered Retirement Savings Plan?
RRSP is a special savings account which helps you save for retirement and reduce taxes while you are still working.
What is it for?
How it works?
Get to know the RRSP
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Featured rates
| Term | Interest rate |
|---|---|
| Savings | 0.60% |
| 1 year | 3.05% |
| 2 years | 3.15% |
| 3 years | 3.15% |
| 4 years | 3.15% |
| 5 years | 3.30% |
Simple process,
guaranteed returns
Please note!
Open an RRSP
To be eligible you must be a Canadian resident aged 18-71 with earned income and a valid Social Insurance Number.
Make contributions
Every year, the government gives you a contribution limit. For 2024, you can contribute up to $31,560. There’s a penalty if you over-contribute.
Grow your savings by reducing taxes
Your investment grows tax-free until you withdraw it in retirement, and you reduce your taxable income for the current year
Withdraw, invest more or re-invest
When you turn 71, your RRSP needs to be converted, commonly to a RRIF, so it can begin providing retirement income. However, you might also access your RRSP funds earlier for specific goals, as long as you meet the required criteria. Withdrawals for these purposes are tax-free and won’t be included as taxable income for that year
Please note!
Save for a stress-free retirement
with an RRSP from BCU
Questions? We got answers!
Contributing to an RRSP can lower your taxable income for the year, potentially reducing the amount of tax you owe. Your investments grow tax-deferred, meaning you won’t pay taxes on any earnings until you withdraw the funds. This allows your savings to compound over time, helping you build more for retirement.
Your annual RRSP contribution limit is 18% of your previous year’s earned income, up to the maximum set by the government. Unused contribution room carries forward, so you can contribute more in future years if you haven’t used your full limit. You can find your exact limit on your CRA My Account.
Yes, you can withdraw funds from your RRSP early, but it will be subject to withholding tax. The amount withdrawn will also be added to your taxable income for the year, and you’ll pay tax on it at your regular income tax rate. However, there are exceptions, like using the funds for the Home Buyers’ Plan (HBP) or Lifelong Learning Plan (LLP), which allow you to withdraw without paying tax, as long as you repay the funds within the set time frame.
Yes, if you over-contribute to your RRSP beyond your contribution limit, you will be charged a penalty of 1% per month on the excess amount. However, there is a small over-contribution allowance of $2,000, which won’t be penalized, as long as the excess amount doesn’t exceed this threshold.
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