Designed for your life stage and situation
Benefit from a series of registered investments designed to support your family’s future. These government-registered investments offer tax-deferral or tax-sheltered status.
Invest in your future with RRSPs
The RRSP is a Canadian account offering tax-deductible contributions, tax-deferred growth, and long-term financial security. At WFCU Credit Union, eligible deposits in registered accounts have unlimited coverage through the Financial Services Regulatory Authority (FSRA). Individuals can contribute up to their annual CRA-assigned limit, with unused contribution room carried forward indefinitely. WFCU also offers RRSP Loans to help members maximize contributions, including any unused amounts from past years.
Immediate Tax Savings
Tax-Deferred Growth
Retirement Security
First Home Savings Account (FHSA)
Saving for a down payment on your first home is no small feat, and in our current economic landscape, prospective home buyers need to be savvy and take advantage of opportunities to maximize their savings goals through registered investments.
The First Home Savings Account (FHSA) is the newest registered plan allowing Canadians to save for their first home tax-free (up to certain limits). Similar to a Registered Retirement Savings Plan (RRSP), every dollar you contribute to your FHSA reduces your taxable income for the year. Unlike an RRSP however, when you withdraw funds from your FHSA to purchase a qualifying home, you do not need to pay them back to avoid penalties.
The FHSA is a great investment tool for new home buyers with annual contributions capped at $8,000 and a lifetime contribution limit of $40,000. For added flexibility, you can carry forward a maximum of $8,000 unused contribution room to the following year.
Each spouse or common-law partner can open an individual FHSA and both can use their accounts towards the purchase of the same home. Together, they have a combined annual contribution limit of $16,000 ($8,000 per person) and a lifetime limit of $80,000 ($40,000 per person). However, they are not allowed to contribute to each other’s FHSAs.
Other things to know about the FHSA, a key option among registered investments:
- It is eligible to Canadian residents aged 18-71 who have a valid Social Insurance Number (SIN) and are considered a first-time home buyer.
- Applicants cannot own or jointly own a qualifying home (nor can their spouse or common-law partner) being used as their principal residence in the calendar year before the account is opened or the preceding four years.
- Applicants must not have withdrawn funds from their RRSP under the Home Buyers’ Plan (HBP) or must have repaid any HBP withdrawals to their RRSP before the year they plan to open an FHSA.
- Parents/guardians and grandparents can contribute to their child’s/grandchild’s FHSA but only the FHSA holder is eligible for tax deductions.
- When a qualifying withdrawal is made, the amount withdrawn is not taxable. For a withdrawal to qualify, the applicant must intend to occupy the qualifying home as their principal place of residence within one year after buying or building it.
Withholding tax schedule of rates:
$0 – $5,000
10%
$5,001 – $15,000
20%
$15,000+
30%
- Your FHSA, a valuable tool among registered investments, can remain open for a maximum of 15 years or until the end of the year you turn 71.
- Any unused FHSA contributions can be transferred, without being taxed, to another registered account, such as your RRSP or RRIF.
- Your FHSA can hold a variety of qualified investments, including cash, GICs, and mutual funds.
- At WFCU, eligible deposits in your FHSA are fully insured.
Tax deduction
The account holder is eligible to claim a deduction for their FHSA contributions, which are a part of their registered investments.
Contributions to an FHSA function similarly to RRSP contributions. They can be claimed as a tax deduction either in the year they are made or carried forward to be deducted in a future year.
The FHSA contribution period runs from January 1 to December 31. Unlike RRSPs, contributions made within the first 60 days of the year cannot be deducted for the previous tax year.
Transfers from an RRSP to an FHSA are not deductible. Contributions made after a qualifying withdrawal cannot be deducted at any time.
Talk to Us About an FHSACurrent Investment Rates
Variable FHSAs
- No minimum investment required
- Use regularly scheduled automatic transfers to build your FHSA investments
- Interest is calculated on the minimum daily balance and paid quarterly
- Can be invested into a fixed-term FHSA after reaching a $500 balance
Fixed FHSAs
- Minimum investment of $500
- Select from terms of one month up to five years
- Competitive interest rates offered
- Interest is compounded annually back to the FHSA
PLUS…
FHSA elsewhere?
Switch to WFCU and we will refund up to $75 of any transfer-out fee
Tax-Free Savings Account (TFSA)
With a TFSA, a key component of registered investments, your investments can flourish without being burdened by taxes. You can contribute up to your yearly limit, and the income you earn within the account is entirely tax-free. Additionally, there is no limit on the number of years of unused contribution room that can be carried forward.
Whether you’re saving for short-term goals or long-term dreams, the flexibility of a TFSA allows you to access your funds when you need them, and your contribution room continues to grow year after year. Our Avanti Investment Services team is here to assist you in maximizing your TFSA, to ensure it aligns with your unique financial goals and aspirations.
Registered Education Savings Plan (RESP)
A RESP is a government-approved plan for the purpose of providing post-secondary education funding for a beneficiary. As a valuable option among registered investments, a RESP is a great vehicle to save for your child’s education, with income earned under the plan not taxed until it’s withdrawn. As an additional benefit, the federal government will contribute 20% on the first $2,500 of annual RESP contributions, up to a maximum of $500 per year. This represents a potential lifetime contribution of $7,200 in grant funds through the Canada Education Savings Grant (CESG). Other provincial grants are also available to support your child’s education. A RESP can hold a variety of qualified investments, including cash, GICs, and mutual funds.
Visit Youth and Student Accounts to learn about other financial products available to our student members.
Registered Disability Savings Plan (RDSP)*
An RDSP is a savings plan designed to help parents and other caregivers save for the long-term financial security of a person who is eligible for the disability tax credit (DTC). As a key component of registered investments, contributions to an RDSP are not tax deductible and can be made until the end of the year in which the beneficiary turns 59, up to a lifetime contribution limit of $200,000. Contributions that are withdrawn are not included as income to the beneficiary when paid out of an RDSP.
*Available through Avanti Investment Services, in partnership with Aviso Financial Inc.
Registered Retirement Income Fund (RRIF)
A RRIF is designed to provide an income stream during retirement, serving as a key option among registered investments. Funded through the plan holder’s RRSP deposits, it can be purchased any time prior to the end of the year the member turns 71. Interest accumulates tax-free in a RRIF deposit until the funds are paid out.
Moreover, a RRIF provides retirees with the flexibility to tailor their income stream to their unique retirement lifestyle. The plan holder has the discretion to choose the frequency and amount of withdrawals, allowing for a personalized approach to financial management.
Life Income Fund (LIF)
Designed to provide income during retirement, a LIF is a savings plan available to members who contributed to a workplace pension plan and have now reached retirement age. As a crucial option among registered investments, locked-in plans must be administered according to the member’s individual plan/jurisdiction, and unlike an RRSP, these funds can only be used for retirement income.
Unlike a Registered Retirement Savings Plan (RRSP), this money can be used only for retirement income.
Mutual funds are offered through Aviso Wealth, a division of Aviso Financial 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 covered by the Canada Deposit Insurance Corporation or by any other government deposit insurer that insures deposits in credit unions. Using borrowed money to finance the purchase of securities involves greater risk than purchasing using cash resources only. If you borrow money to purchase securities, your responsibility to repay the loan and pay interest as required by its terms remains the same even if the value of the securities purchased declines.
