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?
Frequently asked questions
Who can open a Non-Registered Savings Plan?
The only requirements to open a Non-Registered Savings Plan are that you be a Canadian resident, be of the age of majority in your province of residence and have a social insurance number. There is no age limit to opening a Non-Registered Savings Plan.
I’m a newcomer to Canada. Can I open a Non-Registered Savings Plan with iA?
Yes. Foreign workers and students, as well as landed immigrants and permanent residents, can open a Non-Registered Savings Plan with iA Financial Group if they live in Canada and have a social insurance number, whether temporary or permanent.
What is the difference between a non-registered and a registered investment?
Registered plans, like RRSPs and TFSAs, can provide certain tax benefits that allow you to reduce your taxable income, save tax-free and make tax-free withdrawals.
A non-registered plan does not have these benefits, but there is no limit to the contributions you can make and the funds you invest in it can be withdrawn at any time. That’s why it’s a good option for businesses and for those who want to save beyond the limits of their registered accounts.
Are the gains and interest income generated by a Non-Registered Savings Plan taxable?
Yes. Capital gains and interest income are taxable.
- Capital gains are taxed at 50% in Canada. When you sell an asset at a profit based on its adjusted cost base, 50% of the gain is added to your annual taxable income.
- The interest income earned in, for example, a High Interest Savings Account will be added in full to your annual taxable income.
Can I invest in a Non-Registered Savings Plan based on my risk tolerance?
Yes. Like any investment, the assets in Non-Registered Savings Plans are subject to stock market volatility. The level of risk will vary according to the types of investment you choose based on your investor profile.
You can reduce your risk by having a well-diversified investor portfolio. Where appropriate, you can also choose options that offer guaranteed returns. Don’t hesitate to contact your advisor, who will help you make informed decisions based on your financial goals and situation.
Are there fees for opening and/or managing a Non-Registered Savings Plan with iA?
There is no fee for opening a plan, but there are management fees. Management fees vary, especially according to the types of funds you choose and the amount you invest. It’s also possible to benefit from special rates, such as Prestige preferential pricing.
What is the return potential of a Non-Registered Savings Plan?
The rate of return varies according to your investments, the state of the market and your investor profile.
You can review the return histories of our different funds and the rates of our GIFs and HISAs on the following pages:
- Fund performance and overview
- High interest savings account and guaranteed interest funds