Desjardins Credit Union [Change site]
Contribute by regular instalments
To contribute a significant amount annually without straining your budget, just contribute throughout the year and avoid the February rush. This way, your capital will be in a tax shelter for a longer period of time since your contributions will earn interest from day one.
Select the regular instalment plan where your contributions are withdrawn directly from your account. You'll see: a few dollars each week or month will add up.
Interested? Here are two ways to do it.
- Authorise your caisse to withdraw the amount you choose as often as you like.
- If you already have an RRSP Regular Savings Account, you can log on to AccèsD and set up the instalments to be made in advance at the frequency you want.
No need to give it another thought – transfers are made automatically.
You can change the amount and frequency any time you wish.
All you have to do is choose the investment vehicle you want.
This is how your contributions can grow in an RRSP-eligible savings products with a rate of 0.5% per year.
Calculations are based on an investment at the start of the period..
Time span |
Capital invested |
Value of RRSP |
|---|---|---|
After 5 years |
$2,600 |
$2,957.44 |
After 10 years |
$5,200 |
$6,732.34 |
After 20 years |
$10,400 |
$17,700.82 |
 |
||
Time span |
Capital invested |
Value of RRSP |
|---|---|---|
After 5 years |
$13,000 |
$14,787.20 |
After 10 years |
$26,000 |
$33,661.71 |
After 20 years |
$52,000 |
$88,504.08 |
|
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Do you prefer investment funds?
When you opt for regular instalments, you don't have to struggle to find the best time to invest; your instalments are transferred from your account on the scheduled date. You don't have to worry about a thing!
Share prices fluctuate over time. Regular instalments are recommended because they let you take advantage of these price fluctuations.
E.g.: You invest $100 a month in an investment fund, where each share is worth $10 at the start of the year. The price varies from month to month. The following table presents a fictional account that illustrates the advantage of average prices. Since your return is based on average cost, you come out ahead!
Month |
Instalment |
Price per share |
Share pruchased |
|---|---|---|---|
January |
$100 |
$10.00 |
10,000 |
February |
$100 |
$9.50 |
10,526 |
March |
$100 |
$9.00 |
11,111 |
April |
$100 |
$9.75 |
10,256 |
May |
$100 |
$8.75 |
11,429 |
June |
$100 |
$9.25 |
10,811 |
July |
$100 |
$8.00 |
12,500 |
August |
$100 |
$7.50 |
13,333 |
September |
$100 |
$8.50 |
11,765 |
October |
$100 |
$8.75 |
11,429 |
November |
$100 |
$9.75 |
10,256 |
December |
$100 |
$10.25 |
9,756 |
Total |
$1,200 |
133,172 |
|
Final value |
$1,365.02 |
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Averge cost |
$9.01 |
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