5 steps to open an RRSP
1. Shop around to compare fees and plans
Learn about all your Registered Retirement Savings Plan (RRSP) options and where they are offered. Talk to banks and other financial institutions. Ask them what investment options they offer and what the fees are.
2. Decide how you want to invest your savings
Your options include savings accounts, Guaranteed Investment Certificates, Canada Savings Bonds, mutual funds, exchange-traded funds (ETFs), stocks and bonds.
You may want to open a self-directed RRSP. With this type of plan, you can choose more than one type of investment. Ask about the costs of any investment before you decide.
3. Choose an RRSP and financial institution
If you don't have an account there already, bring 2 pieces of acceptable identification when you go to open the RRSP. One of them must be from the government.
4. Complete the RRSP application
Be prepared to answer these questions:
- How much do you know about investing?
- What are your investment goals?
- How much money did you make last year? Bring your most recent Notice of Assessment from the Canada Revenue Agency (CRA) to show how much you can contribute to the RRSP this year.
- Do you have a pension plan at work? This also affects how much money you can put in.
- Who is your beneficiary? This is the person you want to receive the money in your RRSP when you die.
5. Open the account
If you are opening a self-directed RRSP, you don’t have to decide how to invest your money right away. You can leave it in the account as cash or park it in a money market fund.
Keep copies of your RRSP application and records of your investments. You'll also receive tax receipts for your RRSP contributions by the end of February.
If you go bankrupt
Your RRSP funds are largely protected from creditors if you go bankrupt. But any RRSP contributions you make in the 12 months before you declare bankruptcy can be seized by creditors.