Alterna Bank proposes RRSP accounts on the following terms:
- high % rate
- no minimum balance
- management via online banking
Key Features of Alterna Bank's RRSP
- Tax-Deferred Growth: Contributions to your RRSP are tax-deductible, reducing your taxable income for the year. Investments within the plan grow tax-deferred until withdrawal, typically during retirement when your income may be lower.
- Wide Range of Investment Options: Alterna Bank provides access to a variety of investment vehicles within the RRSP, including term deposits, MarketTracer® Term Deposits, and Investment Savings Accounts. This allows you to tailor your investment strategy to your risk tolerance and retirement timeline.
- Flexible Contribution Methods: You can contribute to your RRSP through lump sums, regular pre-authorized contributions, or transfers from other registered plans, providing flexibility to suit your financial situation.
- Easy Access and Management: Manage your RRSP online or through Alterna Bank's mobile app, making it convenient to monitor your investments and make adjustments as needed.
Investment Options Within the RRSP
Alterna Bank offers several investment options within the RRSP to help you achieve your retirement goals:
- Term Deposits: Fixed-term investments with guaranteed returns, providing stability and predictability for conservative investors.
- MarketTracer® Term Deposits: A unique product that combines the security of a term deposit with the potential for higher returns linked to the performance of a market index or group of stocks.
- Investment Savings Accounts: High-interest savings accounts that offer liquidity and flexibility, suitable for those who prefer to keep their funds accessible while earning interest.
Benefits of Contributing to an RRSP
- Tax Deduction: Contributions reduce your taxable income, potentially lowering your overall tax bill for the year.
- Retirement Savings: RRSPs are designed to help you accumulate funds for retirement, ensuring financial security in your later years.
- Home Buyers' Plan (HBP): Allows you to withdraw up to $35,000 to purchase your first home without immediate tax consequences, provided the funds are repaid within a specified period.
- Lifelong Learning Plan (LLP): Enables you to withdraw up to $20,000 to finance full-time education or training for you or your spouse, with repayment terms similar to the HBP.
Considerations Before Opening an RRSP
- Contribution Limits: Be aware of your annual RRSP contribution limit to avoid over-contributing, which can result in penalties.
- Withdrawal Taxation: Withdrawals from an RRSP are taxed as income at your marginal tax rate, so plan your withdrawals carefully to minimize tax implications.
- Investment Choices: Select investments within your RRSP that align with your risk tolerance, investment horizon, and retirement objectives.
If you have additional questions, please call 1-800-267-6999.