​RRSPs & RRIFs

​Retirement can be a wonderful time when you’re financially prepared for it. At Alterna we offer several services that can help you get the most out of your retirement funds. 

Information


Our Solutions

RRSP eSavings Account

​RRSP eTerm Deposits

At Alterna we also offer access to mutual funds through Qtrade Asset Management Inc., Qtrade Advisor and Qtrade Investor†.

You don’t have to make all your retirement decisions on your own. Our financial planners can help you build your nest egg and manage your RRSP or RRIF effectively. Just contact us to arrange a meeting. Your financial planner will help you create or adjust your plan so that it suits your retirement needs perfectly.


What is a RRIF?

Are you turning 71? Under current government regulations, you must convert all your Registered Retirement Savings Plans (RRSPs) to a retirement income option during the year you turn 71. You may also convert RRSP funds anytime before you turn 71 if you choose.

Two popular retirement income options are:

  • Registered Retirement Income Funds (RRIFs), which operate similarly to an RRSP and provide retirement income for you and your spouse
  • Annuities, which provide guaranteed income for life

Many people choose a RRIF. It can be invested just like an RRSP and continues to earn tax deferred interest on the balance, even while you are regularly withdrawing funds from the principal amount.

And, when you make a RRIF withdrawal at Alterna Bank, the payment is withdrawn from your term with the lowest interest rate (not all financial institutions take this into consideration).

RRIF Declaration of Trust (PDF)

RRIF Questions & Answers

RRSP Questions & Answers

Borrowing for RRSPs

If you find you don't have enough cash on hand to make your maximum contribution or would like to take advantage of unused RRSP deduction room from previous years, borrowing may be the answer.

With an Alterna Investment Loan, the amount you'll save on taxes is often more than the interest you'll pay to borrow. To maximize your RRSP benefit, we recommend that you immediately apply your tax refund to the loan to reduce your borrowing costs. You should also try to pay off the loan as early as possible.

See how borrowing over a one-year period can get you a tax refund that is much higher than the cost of the interest you pay:

Loan:$3500
Term:1 year
Rate:6%
Marginal tax rate:41%
Monthly Payment$302
Cost of borrowing$126.78
Tax refund$1435


Example is for illustrative purposes only. Please refer to your tax professional when considering borrowing to make an RRSP contribution to understand the potential tax refund.

Calculators

Our Retirement Income Fund Calculator provides withdrawal minimums and payment options based on the consumption and length of the investment.

These calculators are made available to you as tools for independent use and are not intended to provide investment advice. We cannot and do not guarantee their applicability or accuracy. All examples are hypothetical and are for illustrative purposes only. Please visit your branch to seek personalized advice from qualified professionals for all personal finance issues.


A Tax Free Savings Account (TFSA) is a flexible, easily accessible savings plan. It provides you with a great way to save for your short- or long-term financial goals or simply for a rainy day—and you will not owe tax on the interest you earn.

A Registered Retirement Savings Plan (RRSP) is an investment option that allows you to save for retirement and because it’s regulated by the Canadian government, RRSPs provide special tax benefits. For example, your annual contribution can reduce the amount of income tax you pay in that year and the money you put away can have years of tax-deferred growth potential. You only pay tax on the amounts you withdraw.

If you’ve already maximized your RRSP contributions, a TFSA is one of the many options that will help you save more of your hard-earned money.

With Alterna’s range of investment options, you’ll find safe and effective ways to purchase your first home, buy a new car, plan for a worry-free retirement or preserve your capital during your retirement years. Our financial advisors are here to help you save for the future while you continue to enjoy life today.

Talk to us. Whether you’re looking for a locked-in investment, one that’s easily accessible or both, we’ll help you find the retirement solution that’s best for you. Contact Alterna today to find out more.

Safe & Secure—with deposit insurance

Did you know that all eligible deposits held by clients at Alterna Bank are covered by the Canada Deposit Insurance Corporation (CDIC)? That means your funds are guaranteed up to $100,000 per qualifying account.


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