There are many RRSP products to get you saving, each one suited to help you based on different financial situations and preferences.
Not sure where to start? Here are some examples that take the guess work out for you.
“I don’t have a lump sum ready to invest right now.”
You might benefit from a High Interest Savings RRSP – a simple registered savings account where you can start accumulating money. You can add money to it online, or set up an automatic transfer to it (pay yourself first!) which is a great way to get started in the habit of saving for the future.
“I have about $500 ready to invest.”
If you have some tolerance for risk, consider investing in an RRSP mutual fund. It is essentially a pool of money invested in securities such as stocks and bonds. The main advantage of mutual funds is they give small investors access to professionally managed diversified portfolios. They offer more potential for growth than guaranteed investments such as RRSP Term Deposits.
“I don’t want to take any risks with my RRSP investments.”
Consider investing in RRSP Term Deposits to get a guaranteed rate of return for a fixed period of time. You can get terms from 1 to 5 years with competitive rates of return.
“I’m not excited about term deposit rates but I’m worried about market fluctuations.”
A RRSP Index Linked Term Deposit offers the best of both worlds, allowing you to take advantage of Canadian stock market gains while protecting your capital. Both 3 and 5 year options are available for purchase.