Borrowing for your RSP can help build towards your retirement

Being able to contribute the maximum possible for your Retirement Savings Plan (RSP) is the best way to build a secure retirement. Not everyone can max out their RSP contributions and need a little help.

That’s where Encompass comes in. Talk to one of our advisors about a top up loan, or a line of credit. 

Potential tax savings

Keeping money out of the tax man’s pocket is something that most Canadians try to do as best as they can. Maximizing your RSP contributions is the best way to not only reduce the amount of taxes that you may have to pay to the Canadian Revenue Agency (CRA), but those funds will also go directly into your retirement funds – which most people fear they don't have enough.

It’s simple, you borrow to help top up your RSP contribution for this year, or room you may have from previous years. Not only will that allow you to save on the taxes you would have paid the government from your marginal tax rate, but also getting it into your RSPs earlier helps build through investment growth sooner than later. All those funds are sheltered from taxes, as long as it is in your RSP.

Ways to grow your money
An RSP is a great way to build your retirement fund, while also saving taxes on income you've earned this year.

Benefits of an RSP

  • RSPs can be invested in many different ways – in stocks, bonds, mutual funds, term deposits and so on.
  • Deposits and interest are 100% guaranteed by the Credit Union Deposit Guarantee Corporation 
  • Maximize your tax refund
  • Preferred interest rate when you purchase an investment product
  • Allows you to put money away for retirement
  • Option to use your tax refund to pay down the loan
Calculate your potential
Use our calculators to figure out just what you may need for the future, or right now.  

Save for your future, while reducing taxes
Top it up to maximize your tax return
Most everyone has a bit of room to allow a top-up to their RSPs, either from their own funds, or a loan to save in taxes

How will it work?
  • Top up loan will give back between 20%-40% of that contribution on your tax return (depending on your tax bracket)
  • Take that return and invest right back to increase your return even more OR;
  • Take the return and pay down the loan - no penalty
  • Short term loan - usually paid back in one year
  • That's money directly into your retirement, not taken in taxes 

Featured RSP-Eligible Term Deposits 

Keep your money safe and secure with great rates and flexible options.
1 Yr Non-Redeemable

Interest Rate

3 Yr Non-Redeemable

Interest Rate

5 Yr Non-Redeemable

Interest Rate

*Rates subject to change.

Contact our expert staff to help

Message
Contact reason is mandatory

Message is mandatory

This field is mandatory.
This field is mandatory.

Requires consent

I consent to Encompass Credit Union, and its agents and representatives, collecting, using, and disclosing my personal information provided in connection with this Application, and any changes or additions to this information provided in the future, for the purposes of:

  1. providing me, or a third party for whom I am acting, with Financial Institution products and services that I have applied for or may apply for in the future and providing information to suppliers of products and services to me or the Financial Institution in connection with providing these Financial Institution products and services;
  2. understanding my needs and determining the suitability of products and services for me; determining my eligibility for these products and services;
  3. establishing my identity; verifying information provided by me with third parties including my employer and other financial institutions, verifying information provided by third parties; administering the Account; and making sure my records are kept separate from others with the same name;
  4. protecting me, a third party for whom I am acting, or the Financial Institution from error and fraud such as identity theft;
  5. collecting a debt owed to the Financial Institution;
  6. transferring or selling Financial Institution assets, such as in an acquisition, merger, loan syndication, securitization of loans, or sale of loans;
  7. complying with legal requirements, including money laundering laws and regulations.

I consent to Encompass Credit Union, and its agents and representatives, disclosing my personal information to:

  1. suppliers of products and services to me or the Financial Institution, including data service providers, cheque printers, card manufacturers, affiliates of the Financial Institution, provincial or national central Financial Institutions or trade associations, in connection with providing and administering my Account and other products and services provided to me, or a third party for whom I am acting;
  2. participants in the payment and clearing systems in connection with providing or administering my Account and other products and services provided to me or a third party for whom I am acting, and to other financial institutions that I request pay cheques drawn on the Financial Institution;

If there is more than 1 Applicant, I consent to Encompass Credit Union disclosing information about the Account as instructed by either/any 1 of the Applicants.

If you have questions about the collection, use and disclosure of your personal information by the Financial Institution, please contact us.

This website uses cookies to improve your user experience. By continuing to browse the site you are agreeing to our use of cookies.