What types of RRSPs are available?
There are three basic types of individual plans available: Deposit Type Plans, Mutual Funds, and Self-Directed Plans. The following is a short description of each plan but remember that plan features will vary among issuers. Deposit Type Plans Deposit-type RRSPs are the most common plans. They offer familiar savings options including saving accounts, term deposits or guaranteed investment certificates. The rate of interest may be variable, fixed or index-linked. Key choices include the term of the deposit (ranging from daily to multi-year); and frequency of interest calculations and payments to the RRSP (daily, monthly, annually, or end of term). Key considerations include the issuer’s policy regarding early withdrawals (your investment may be non-redeemable for the term); and deposit insurance coverage. Mutual Funds There are money market funds, income funds and equity funds. The first is invested in short-term securities such as treasury bills and government and corporate notes. Inco
