A RRSP can help you create a retirement nest egg, with tax advantages

What are your plans after you stop working? Will you travel? Take classes? Spend time on favourite hobbies? Save towards the retirement lifestyle you want in an account that defers taxes until you withdraw your money.

Our registered retirement savings plan (RRSP) lets you:

  • Get a tax deduction for your eligible contributions
  • Accelerate investment growth with no taxes on interest earned inside the account
  • Build your savings in secure, protected investments
     

1.20%
Registered Advantage
Account rate 1

Is our RRSP right for you?

Yes, if you:

  •  Want to save for your retirement, first home or education 
  • Want to reduce taxes 
  • Are under 71 years old
Kid painting.

RRSP Benefits

Faster growth with no taxes until you withdraw

Inside your RRSP, taxes don’t take a bite out of the interest you earn every year. Instead, every dollar in your account keeps growing.

Pay less tax when you withdraw in retirement

After you retire, your income will probably be lower than it is now. That means the money you take out of your RRSP will likely be taxed at a lower tax rate. 

Deduct your eligible contribution from your income

You’ll get a tax slip for your eligible RRSP contribution. Use it to lower your income and your tax bill when you file your taxes.

Safe investment choices

With a Manulife Bank RRSP, your savings will earn competitive interest rates and your deposits are eligible for deposit insurance protection through the Canada Deposit Insurance Corporation. See what's covered.

Borrow to pay for a first home or education

You don’t have to pay tax on two kinds of RRSP withdrawals, as long as you pay the money back on time. You can take out up to $25,000 to make a down payment on your first home through the Home Buyers’ Plan, and you can take out up to $20,000 to pay for your or your spouse’s education through the Lifelong Learning Plan.

Even out income in retirement

If you earn more (and pay more taxes) than your spouse, you can choose to contribute to your spouse’s RRSP. You’ll get the tax deduction and your spouse will pay tax on withdrawals in retirement. This strategy can help you pay less tax now and in retirement.

RRSP investment options

Registered Advantage Account

 

  • No minimum investment
  • Your money is not locked in
  • All deposits earn the same high interest rate
  • No set-up fees

Learn More

RRSP GICs: 1-year to 5-year term

 

  • $2,500 minimum investment
  • No set-up or maintenance fees

Learn More

RRSP short-term deposits: 30-day to 364-day term

 

  • $25,000 minimum investment
  • Can withdraw cash before maturity (fees apply)
  • Guaranteed growth
  • No set-up or maintenance fees

Learn More

Rates

Our RRSP offers a competitive interest rate on all your money:

1.20%
Registered Advantage Account
rate 1

Guaranteed Investment Certificate (GIC):

1 year

1.90%

Annual interest

2 years

1.95%

Annual interest

3 years

2.00%

Annual interest

4 years

2.05%

Annual interest

5 years

2.25%

Annual interest

Long-term GIC is not redeemable before maturity except upon death. Minimum $2,500 investment. For compound interest certificates, use annual rates.

These rates apply to deposits up to $2 million. To find out the rates for deposits over $2 million, please call us at 1-877-765-2265.

Short-term deposits:

30 - 59 days

1.00%

60 - 89 days

1.10%

90 - 179 days

1.20%

180 - 269 days

1.35%

270 - 364 days

1.50%

Short-term GICs may be redeemed prior to maturity but interest is forfeited if redeemed within 29 days from issuance. If redeemed on or after 30 days but before maturity, a 1.25% reduction in interest rate will apply. Interest is prorated to the number of days. A $25.00 early redemption fee will also be charged. Refer to the GIC Confirmation for details.

1The variable annual interest rate is applied to all funds in the account. Interest is calculated daily on the total daily balance and paid monthly. Rate is subject to change without notice. Withholding taxes may apply if funds are moved to a non-registered account.

Manulife Bank is a member of the Canada Deposit Insurance Corporation (CDIC), which means your deposits are eligible for CDIC deposit insurance protection. Visit cdic.ca for information on eligible deposits.

Resources

Retirement savings calculator

Whatever you have in mind for retirement, see what you need to save to hit your goals.

Start calculating

Find out your RRSP deduction limit

Kids drinking cocoa.

FAQ

Your contribution limit is 18% of your earned income last year to a maximum dollar amount that changes every year. However, you may be able to contribute much more. You started accumulating RRSP contribution room as soon as you filed your first tax return reporting earned income. Each year after that you accumulated more contribution room. Your current contribution room is the sum of this year’s contribution limit and any unused contribution room from previous years. Find out how much contribution room you have through the Canada Revenue Agency’s My Account website, MyCRA mobile app or Tax Information Phone Service at 1-800-267-6999.

When you retire, and no later than the end of the year you turn 71, you have three choices for your RRSP. You can convert it into a registered retirement income fund (RRIF), buy an annuity, or withdraw (and pay tax on) all your RRSP savings at once.

The Canada Revenue Agency generally doesn’t penalize over-contributions under $2,000. However, over that amount, you will be charged a tax of 1% every month on amounts that exceed your contribution room

You may also like

Red rain boots.

Save for any goal with a tax-free savings account (TFSA)

Build your savings faster in an account that doesn’t tax the growth on your investments and doesn’t tax withdrawals. A TFSA can help you save towards a major purchase, a new home, your retirement or a “rainy day” emergency fund.

Learn More
Couple holding hands.

Finance your retirement lifestyle with a registered retirement income fund (RRIF)

Your money keeps growing tax-deferred as long as it stays within your RRIF. Every year, you must withdraw a minimum, taxable amount, which you can use to help pay living expenses in retirement.

Learn More
Girl tablet on staircase.

Get complete flexibility with a high-interest savings and chequing account

Choose a combined savings and chequing account with a high interest rate and free unlimited everyday banking transactions as long as you keep a minimum $1,000 balance. Bank anytime, anywhere through online and mobile banking and access your money at more than 3,700 ABMs across Canada.

Learn More