Valley First

Retirement Savings Plan RSP

This RSP investment plan is for you if:

  • you want to add an RSP low risk investment to your savings portfolio.
  • you're saving for a down payment on a new home.
  • you're looking forward to relaxing retirement—you’ve earned it.


Key Features & Benefits

A Registered Retirement Savings Plan (RRSP) is a government-approved plan you use to save money for your retirement years. Your contributions, within limits, are tax deductible, and the income earned is tax sheltered. We offer:

  • Highly competitive rates of return
  • A variety of investment options to meet your retirement goals
  • A pre-authorized contribution plan so that money is automatically transferred from your account to your RSP
  • Friendly RSP specialists to handle all the paperwork

Valley First can also lend you money to make your RSP contribution. A RSP loan gives you choice, flexibility, and a competitive rate.

Interested in finding out more? Check out our RRSP/RRIF Basics online brochure (PDF) or our Retirement Income Options online brochure (PDF)—both chalked full of great information. You will need Adobe Acrobat Reader to view these PDF documents. If you do not already have Adobe Acrobat Reader, click here to download this free software.

*Mutual funds, other securities and securities related financial planning services are offered through Qtrade Advisor, a division of Credential Qtrade Securities Inc. Mutual funds and related financial planning are also offered through Qtrade Asset Management Inc. Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. Please read the prospectus before investing. Unless otherwise stated, mutual fund securities and cash balances are not insured nor guaranteed, their values change frequently and past performance may not be repeated.


Our Current Rates

RRSP Variable Rate Demand Plan (Rates effective 2019-06-04) Rates
$0 - $4,999.99 0.05%
$5,000-$19,999.99 0.15%
$20,000-$49,999.99 0.25%
$50,000 and over 0.25%
Short-Term Non-Redeemable (Rates effective 2019-06-20) Rates
30-59 Day Term 0.20%
60-89 Day Term 0.25%
90-119 Day Term 0.30%
120-179 Day Term 0.35%
180-269 Day Term 0.40%
270-364 Day Term 0.50%
Long-Term Non-Redeemable (Rates effective 2019-06-20) Rates
1 Year Term 1.60%
2 Year Term 1.70%
3-Year Term 1.80%
4-Year Term 1.90%
5-Year Term 2.00%

To learn more about other product rates available for your RSP investment portfolio, contact us.


*Rates are subject to change without notice. Interest rates are per annum. Interest compounds annually. Terms and conditions apply.


Options for Converting Your RRSPs

  • Convert to a RRIF
    A RRIF is a tax-deferred retirement plan used to generate income from the savings accumulated from your RRSP plan.
  • Get the cash
    You can take your RRSP as cash, but it will be fully taxable in the year of withdrawal and a large percentage will go to Canada Revenue Agency.

Product Options

Valley First can help you to decide which investment route to take. We can help you to put together your RSP investment strategy. Choose from a full range of eligible RSP investment products to meet your needs and to give you the opportunity to maximize your RSP's potential for growth. Investment choices include:


Things to consider

  • Start early. Make your contributions as soon as possible in your working career and benefit from long-term compounding.
  • Contribute as much as you can on a regular basis instead of scrambling at the end of the year for thousands of dollars. Contribute to your RSP with every paycheque or once a month. You will start earning tax-sheltered income right away.
  • Don't miss a year. Even one year can have a significant impact on your retirement savings.
  • Contribute at the start of the month rather than at the end. The long-term effect of contributing 30 days earlier each month can be substantial.
  • Use your RSP for more than just retirement. Some Canadians are using their registered savings
    • To fund education — you can withdraw a maximum of $20,000 from your RSP over a four-year period to enroll in a qualifying educational program. Repayment to your RSP must be completed within 10 years.
    • To buy a house — if you are a first-time home buyer, you can withdraw up to $25,000. All withdrawals have to be paid back to an RSP within 15 years.
    • As a cash reserve — in an emergency, you can withdraw funds from your savings account. In this case, all withdrawals are subject to income tax.


    Frequently Asked Questions

    Who can contribute to an RSP?

    Anyone who earned income subject to Canadian taxation, including non-residents, may contribute to an RSP.

    What is earned income?

    Earned income includes salary or wages, rental income, alimony received, net business income, and Canada Pension Plan and disability benefits, etc. Earned income does not include investment income, retirement allowances, taxable capital gains, pension plans, etc.

    When is the best time to invest in an RSP?

    The sooner you get your money working for you, the more you'll have when you need it. That's the magic of compounding interest. Delaying can cost you more money than you think. The best time to start is as soon as you have earned income and as early as possible in the current tax year.

    How much can I contribute each year?

    The maximum RSP contribution you may deduct for the current year is 18% of your earned income for the prior year up to the maximum of $26,010 less your pension adjustment (PA).

    Unused RSP contributions from 1991 onward can be carried forward to subsequent years indefinitely. RSP contributions need not be used as a deduction in the taxation year they are made. There is no limit on when the deduction may be claimed.

    If you have questions about your contribution limit, you can call the automated Tax Information Phone Service (TIPS) at
    1-800-267-6999 or register at My Account on the Canada Revenue Agency website.

    How can I make RSP contributions if I don’t have the money?

    If you have a hard time coming up with the cash to make your maximum RSP contribution, Valley First Investment Services has two ways to help you:

    • A RSP loan allows you to make your contribution before the deadline for the current tax year.
    • Our pre-authorized contribution plan automatically transfers money from your account to your RSP. Invest small amounts on a regular basis—even $50 a month—and you’ll earn more on your RSP than you would by contributing an annual lump sum.

    What if I need my RSP savings before I retire?

    You can make withdrawals from your RSP in whole or in part, provided your investment options are redeemable at the time. The money you withdraw is taxable and will be reported on a T4 RSP by the issuer of the plan.

    You can withdraw a maximum of $20,000 over a four-year period (maximum $10,000 per year) to finance your education—full-time training or higher education of at least three months duration. Repayment to your RSP must be completed within 10 years.

    If you are a first-time homebuyer, you can withdraw up to $25,000. All withdrawals have to be paid back to an RSP within 15 years.

    What is a spousal RSP?

    With a spousal RSP, you can direct part or all of your maximum allowable contribution to an RSP in your spouse's name. A spousal RSP will help you save tax during retirement through income splitting, since the income eventually created from the funds will then be taxed at your spouse's lower tax rate.

    What if I don't use my maximum RSP deduction limit in a given year?

    Your unclaimed RSP deduction limit from 1991 onward can be carried forward indefinitely. In addition, you do not need to claim your RSP contributions as a deduction in the taxation year that they are made.

    When can I close my RSP?

    You may close your RSP at any time, but you must do so before the end of the calendar year in which you reach age 71. You can choose to

    • Withdraw funds and pay taxes on the full amount, or
    • Select a retirement income option.

    The Income Tax Act provides three retirement income options:

    As a retirement income option, you can also set up a self-directed RIF through Valley First.

    When will my RSP be subject to tax?

    Your RSP helps you look forward to your retirement by allowing you to pay yourself in the form of tax-sheltered contributions. Any growth within your RSP is not subject to income tax until you withdraw the money. So your savings accumulate and grow tax-free.

    Consider investing online with our partner, Qtrade Investor—Canada’s best online broker. Contact us for more information or login to your Qtrade Investor account now. Online brokerage services are offered through Qtrade Investor, a division of Credential Qtrade Securities Inc.

    Ready to invest? Creating an investment plan with us is easy!


    Book an appointment online to meet with a representative to reach your investment goals.

    In Person

    If you're more comfortable coming in to see us, we'd be happy to create a new investment plan for you or make changes to your existing plan.

    By Phone

    If you’d like to call us, here is a complete list of our branch and insurance office numbers.