What is a Non-Registered Savings Plan?
A Non-Registered Savings Plan is an investment vehicle that allows you to invest without being restricted by a contribution limit. This flexible option is a great solution for those who have reached their RRSP and TFSA limits but want to continue saving for a project or retirement.
The growth potential of a Non-Registered Savings Plan is generally better than that of a bank savings account and varies according to the nature of its investments. Though it is important to bear in mind that the gains and interest income generated by a Non-Registered Savings Plan are taxable.
The main benefits of a Non-Registered Savings Plan
- There is no contribution limit, allowing you to extend your saving capacity once you’ve reached the limits of your RRSP and TFSA
- An ideal solution for businesses, which cannot open registered plans
- It can generate additional retirement income and you can continue to contribute after turning 71 years old, since, unlike an RRSP, there is no age restriction
- Your funds are accessible at any time
How do I open a Non-Registered Savings Plan with iA?