Which is the best bank for RRSP?

Last Updated: 29-Nov-2022

Short Answer

Based on our analysis of interest rate, fees charges, ease of managing the account and safety of funds, EQ bank is the best option in Canada to open a RRSP account.

Detailed Answer

Bank Account for RRSP

RRSP is an investment plan that is used to save money for your retirement. When you look to establish a normal bank account, you check the bank interest rate, features, and fees. Similarly, when you open a RRSP bank account, you need to check the interest rate the bank is offering, account handling fees, safety of funds, etc.

Which is the best bank for RRSP?

While exploring through numerous alternatives, EQ bank, also known as Equitable bank seems the best option to open an RRSP with.

Why EQ Bank is good option for RRSP?

We have illustrated the reasons and features below:

  1. You can open and handle your account completely online.
  1. The savings RRSP account offers an interest rate of 2.00% per annum that is one of the best in the market.
  1. The GIC within RRSP offers 4.70% per annum for a 5 years’ time frame and the minimum required is only $100.
  1. You do not have to pay any fees for opening, closing or maintaining the account.
  1. You can set up regular contributions and direct debit into RRSP by linking your bank account.
  1. It digitalizes your taxation process and emails you your tax slips.
  1. EQ bank is a member of Canada Deposit Insurance Corporation Protection (CDIC); hence, your deposits are safe.
  1. EQ bank also has a Registered Retirement Income Fund (RRIF) and once you turn age 71 you can either withdraw a lump sum from your RRSP or transfer it to your RRIF to set up an income stream.

Alternative Banks for RRSP

  • Accelerate Financial and Achieva Registered Retirement Savings Plan offer interest rates of 2.60% per annum and 2.85% per annum respectively but they are not guarded by CIDC.
  • Tangerine RSP Savings Account has a promotional interest rate of 4.00% per annum. You need to become its new client by 13th October 2022 to lock in this rate. Its usual interest rate is only 1.00% per annum.
  • National Bank of Canada Cash Advantage Solution RRSP offers an interest rate of 0.80% per annum.

Best Bank for RRSP

Although EQ bank has various pros, it also has some drawbacks. You should have a savings plus account with EQ to open an RRSP. In addition, EQ bank does not offer its services to Quebec residents.

Tagged With: rrsp canadaregistered retirement savings planbest bank for rrspbank rrsp savings accountequitable bankeq bank
Categories: RRSP
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