What is a RDSP?
RDSP stands for Registered Disability Savings Plan and is a long-term savings plan designed specifically for individuals with disabilities to help them save for their future financial security.
You can also place free funds on a savings account.
Calculate your future income on a savings account (example):
| Amount, $ | Rate, % | Accrued %, $ |
| 25,000 | 3.15% | 788 |
| 25,000 | 3.25% | 813 |
| 25,000 | 3.35% | 838 |
| 60,000 | 3.65% | 2,190 |
| 60,000 | 3.75% | 2,250 |
| 60,000 | 3.85% | 2,310 |
| 140,000 | 4.15% | 5,810 |
| 140,000 | 4.25% | 5,950 |
| 140,000 | 4.35% | 6,090 |
| 340,000 | 4.65% | 15,810 |
| 340,000 | 4.75% | 16,150 |
| 340,000 | 4.85% | 16,490 |
How does RDSP work?
The RDSP or Registered Disability Savings Plan helps individuals with disabilities and their families save for long-term financial needs, such as retirement, without affecting eligibility for government benefits like the Disability Tax Credit (DTC) or other income-tested benefits.
Contributions to an RDSP can be made by the beneficiary, family members, or anyone else authorized to contribute on their behalf. There is no annual limit on contributions, but there is a lifetime contribution limit of $200,000 per beneficiary.
The federal government provides matching grants through the Canada Disability Savings Grant (CDSG) and the Canada Disability Savings Bond (CDSB) to assist with savings.
Withdrawals from the RDSP are included in the beneficiary's income for tax purposes when they are paid out. However, since individuals with disabilities often have lower income levels, they may be in a lower tax bracket when withdrawing funds.
To open an RDSP, the beneficiary must:
- Be eligible for the Disability Tax Credit (DTC).
- Be a Canadian resident.
- Have a valid Social Insurance Number (SIN).
- Benefits of RDSP
You can see the similar FAQ about Canadian banks at the link:
- Advice direct from BMO
- Alterna Bank RRSP
- Alterna Bank TFSA transfer fee
- Alterna Bank and the CDIC
- Alterna’s MarketTracer Term Deposit
Details of companies offering the financial services:
CIBC
Head office’s address: 199 Bay St, 44th Floor Toronto
Contact center: 800-465-2422
Web-site: https://www.cibc.com/en/personal-banking.html
Swift code: CIBCCATT
Stock code: CM
BSB: 010
RBC Royal Bank
Head office’s address: 200 Bay St, 9th Floor South Tower, Toronto
Contact center: 800-769-2511
Web-site: http://www.rbc.com/canada.html
Swift code: ROYCCAT2
Stock code: RY
BSB: 003
Scotiabank
Head office’s address: Scotia Plaza, 44 King Street West Toronto
Contact center: 800-472-6842
Phone: 416-866-6430
Web-site: http://www.scotiabank.com/ca/en/0,,2,00.html
Swift code: NOSCCATT
Stock code: BNS
BSB: 002