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Prairie Pride Credit Union



Registered Options

Registered Retirement Savings Plan (RRSP)
Prairie Pride Credit Union offers a variety of options for investing your RRSP. As with all deposits at the Credit Union there is an Unlimited Guarantee of funds through the Deposit Guarantee Corporation.

A Registered Retirement Savings plan is a government approved plan that allows you to save money for your retirement. During your peak earning years you can invest to build your retirement fund while saving money on your taxes. Interest earned on these savings is not taxable until the funds are withdrawn. Any interest earned is compounded and the growth of an RRSP increases rapidly over the years.

Anyone who has "earned income" subject to Canadian taxation, including non-residents, may contribute to an RRSP. You can also make a part of or all of your contribution to a plan in your spouse's name. You as the contributor still benefit from the tax deduction. Limits to RRSP contributions are based on "earned income" of the previous year. You can also carry forward any unused portions. This information is on your Room Statement from Canada Revenue Agency.

Registered Retirement Income Fund (RRIF)
The first stage of an RRSP is to accumulate retirement savings. The next stage is to provide retirement income. Your accumulated savings may be invested in a variety of options to provide a retirement income eg. RRIF. The retirement income payments are taxed each year as you receive them, thus spreading the taxation of your accumulated savings over your retirement.

Prairie Pride Credit Union offers the following Registered Retirement Income Funds for your convenience:

  • Variable Plan Rates fluctuate with the market. This plan is open and can be changed to a locked in interest plan at any time.
  • Fixed Plan Available investment periods of 1-5 years and the interest rate fixed for the length of term chosen.
Registered Retirement Income Options
Locked-In Retirement Income Fund (LRIF) The LRIF operates as a Registered Retirement Income Fund with the further requirement that the funds are locked -in permanently to ensure lifetime income. This plan allows you to control your investments for life, while providing some flexibility in determining income schedule. Some additional benefits are listed below:

  • Limited ability to select payments that meet retirement budget needs early in retirement.
  • Allows you to create and maintain an estate.
  • Ability to transfer a LRIF from one issuer to another.
Life Income Funds (LIF)
A LIF acts as a RRIF from the year it is established until the member turns age 80 at which time it must be converted to a Life Annuity. The LIF can be converted to a Life Annuity prior to age 80.

The primary benefit of a LIF is that it provides you with some of the flexibility of a RRIF early in retirement and guarantee a fixed income later in life. Additional benefits are listed below:

  • Ability to transfer a LIF from one issuer to another.
  • Ability of preserving capital and using the LIF as a more effective estate builder.
  • Ability to delay the purchase of an annuity until a time when perhaps annuity yields are more favourable.

Tax Free Savings Account (TFSA)
Tax-Free Savings Account (TFSA) is registered savings account that allows taxpayers to earn investment income tax-free. Ask us what the limit set by the government is at the time of contribution.

  • Contributions are not tax deductible.
  • Any unused portion can be carried forward to the following year.  For information on carry forward room, contact 1-800-267-6999 Tax Information Phone Service (TIPS)
  • The amount of TFSA withdrawals that you take in a year will be added back to your contribution room in the following year
  • CRA will determine your TFSA contribution room when you file your income tax. This will be reported annually on your Notice of Assessment.
  • Chequing, ATM and Bill payment privileges are not permitted
  • Overdrafts and coverdraft sweeping is not allowed
  • Funds can be transferred, withdrawn or deposited at member’s request
  • Fees as per Products, Services & Fees brochure
  • Unlimited guarantee provided by Credit Union Deposit Guarantee Corporation

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