Low Risk RRSP Investments Offered by Banks in Edmonton, Alberta

In this articles I’ll look at some of the safer and conversative alternatives currently offered for R.R.S.P. investments that can be found in edmonton’s region. In future articles I’ll review mutual funds, stocks and my all time favourite using RSP to invest in Edmonton real estate.

What is a low risk RSP?

A low risk RRSP is bacially a RSP that will guarantee your investments regardless of whatever happens in the Edmonton market. They are usually guarantee by the bank of canada security act. These types of investments are usually for people that have no tolerance for risk and wishes to sleep better at night. I called these types of investments low risk because the money deposited into these accounts are guarantee by the governement of Canada.

Which banks guarantee your principal investments in Edmonton for RRSPs?

The five largest banks in Edmonton are relatively safe. These banks are: the Royal Bank of Canada, the Toronto Dominion Bank, the Bank of Montreal, the Bank of Nova Scotia and the Canadian Imperial Bank of Commerce. These banks are fully guaranteed by the Government of Canada and is protected under the Canadian Deposit Insurance Corporation (CDIC). Money deposited in these accounts are protected up to $100,000 per depositor per bank. The deposits must also be made in Canadian currency, payable in Canada and must be repayable no later than five years from the date of deposits.

In addition some of the second tiers banks such as the National Bank of Canada, the Mouvement Desjardins (credit unions), HSBC Bank Canada and ING Bank of Canada also have the similar protections given to the top five largest banks in Edmonton.

Current RSPs rates offered by the five largest banks in Edmonton

All top 5 banks in Edmonton offered pretty much the similar rates for GIC (guarantee investment certificate) with a minimum $500 deposits and three years terms. The only exception is RBC. They’re offering 0.85% for the first year, 2.25% for the second year and 1.9% for the third year. The other 4 banks, TD Canada Trust, BNS, BMO, & CIBC are offering 1.0% for the first year, 1.6% for the second year and 1.9% for the third year. You can start investing and contributing into your 2008 or 2009 R.S.P. account for as low as $500. just visit any of your local Edmonton top 5 banks and start savings for your retirement.

Current R.R.S.P. rates offered by 2nd tiers banks in Edmonton

The second tires banks or trust companies generally are viewed as a little bit more risks and that’s why you’ll often see a bit of higher returns compare to the top 5 banks in Edmonton which are protected under the CDIC by the Government of Canada. The best rates that I found for the 2008/2009 RSP seasons are:

1. Equitable Life, 2.0% for the first year, 3.25% for the second year, 3.5% for the third year;
2. Canadian Western Bank, 2.25% for the first year, 3.05% for the second year, 3.35% for the third year;
3. ING Direct, 2.0% for the first year, 3.0% for the second year, 3.25% for the third year;
4. B2B Trust, 2.0% for the first year, 3.0% for the second year, 3.3% for the third year;
5. Desjardins Fin. Security, 1.85% for the first year, 2.0% for the second year, 2.95% for the third year;
6. Citizens Bank of Canada, 2.0% for the first year, second & third year;
7. HSBC Bank Canada, 1.2% for the first year, 1.6% for the second year, 1.9% for the third year.
You can also start investing into any of these second tiers bank with as low as $500 and you can easily find them around Edmonton as well.

Many of the top 5 banks and 2nd tiers banks also offered shorter 1 year term. Just visit any of your local Edmonton branch to ask for more details.