Tax-free GICs

Save with our Retirement Savings Plan (RSP) and Tax Free Savings Account (TFSA)

Our GICs can play an important role in helping you save for retirement or get the most from your tax-free savings

For many individuals, RSPs provide tax relief. That’s because every dollar you contribute reduces the income on which you have to pay tax, and that can translate into a nice rebate! Use that money to invest even more and you’re one step closer to a comfortable retirement.

Of course you ultimately have to pay tax when you start withdrawing from your RSP. But for most retired people that is at a lower bracket than when they were working, and you can benefit from the tax-free growth of your portfolio as well.

RSPs are especially good for those in higher tax brackets. They’re also great for couples (married or common law) where one spouse earns more than the other: a spousal RSP lets you split income in a way that can reduce your joint tax burden. With all these advantages, there’s clearly a lot to like about RSPs.

TFSAs enable you to defer tax on your saving for an unlimited period of time. And whatever growth you earn in a TFSA remains untaxed too, even if you withdraw it for your retirement. So that makes TFSAs a must-have for all investors.

TFSAs also have another advantage over RSPs: once the minimum term is complete, you can withdraw money from them at any time with no penalty, and then re-contribute the same amount in the next calendar year. So that means a TFSA can be used for anything from emergency funds to home renovations, in addition to building up your retirement nest egg.