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Frequently Asked Questions

Investing and Retirement - RRSP

  1. What is an RRSP?
  2. What is a Self-Directed RRSP?
  3. Do you have a program where customer can arrange automatic transfers to RRSP Daily Interest Savings Account?

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  1. What is an RRSP?

    A Registered Retirement Savings Plan (RRSP) is like any other investment - except that it grows on a tax-deferred basis. In fact, an RRSP can be almost any kind of investment: mutual funds, a stock, a GIC, or even a daily interest savings account. The difference is that when you put money into your RRSP, that money is deducted from your income at tax time... which means that you could get some of that money back as a tax refund. For example, if you earn $50,000 and put $8,000 in an RRSP, you only get taxed on $42,000.

    On top of that, the earnings on your investment are also exempt from taxes, as long as you keep them in your RRSP. Once you withdraw money from your RRSP, it gets added to your regular income and is subject to tax.

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  2. What is a Self-Directed RRSP?

    A self-directed RRSP is a retirement investment that is controlled entirely by you. The best way to think of a self-directed RRSP is as a folder that holds all your RRSP investments. It can hold as many investments (e.g. GICs, stocks, bonds, or mutual funds) as you like, as long as your portfolio does not exceed the 30% limit on RRSP investments outside Canada.

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  3. Do you have a program where customer can arrange automatic transfers to RRSP Daily Interest Savings Account?

    Regular investment plans are ideal if you do not have a lump sum to invest or if you are just beginning to save for retirement. You can choose to transfer a set amount to an RRSP Daily Interest Savings Account (DISA) at a set frequency.

    You can start a regular investment plan with an affordable initial deposit of $25 and subsequent deposits of $25 or more. Interest is calculated on the daily closing balance and credited to the account on June 30 and December 31. As interest in an RRSP is tax sheltered, your investment will grow faster.

    You can withdraw or transfer to another CIBC RRSP product anytime. As you accumulate your RRSP savings, you can transfer funds to guaranteed investment certificates and other higher-interest bearing RRSP products.

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