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With as little as $25, you can open a CIBC RRSP Daily Interest Savings Account (DISA) and get a head start on saving for a carefree retirement.
As the name implies, the interest rate of 0.01% is calculated daily on your savings and paid to you at the end of the month. This way, you accumulate a little compound interest on your savings.
The CIBC-registered retirement savings plan DISA – CIBC RRSP Daily Interest Savings Account gives you complete access to your money. Although the interest rate is relatively low compared to those of other banks in Canada, there are benefits you’d enjoy while using this account.
These benefits include guaranteed principal and interest. You can also enjoy flexible investments at your convenience.
Does this account sound like what you’re looking for? If yes, let’s take you on a ride through its features, fees, pros and cons, and lots more.
Features of The CIBC RRSP Daily Interest Savings Account
Below are the features which set this CIBC savings account apart:
- 0.01% interest rate.
- $100 transfer charges to other financial institutions.
- $25 minimum investment.
- Daily interest calculation on investment.
- Monthly payment of accumulated interest.
- $0 account maintenance fee.
- $0 charges on transfers from your CIBC RRSP Daily savings account to your other accounts on CIBC.
Pros of The CIBC RRSP Daily Interest Savings Account
Here are some of the benefits you’d enjoy when you join other Canadians who are saving for their retirement with this account:
Save At Your Convenience
This account allows you to save at your convenience. The minimum investment requirement is $25, and that’s easy to start with. You can increase this amount in the future.
Free Account Maintenance
There are no fees charged for account maintenance. That way, you accumulate the daily calculated interest as compound interest monthly at zero cost. Sounds juicy?
Free In-Bank Transfers
You might have a cheque or other savings account with CIBC (Canadian Imperial Bank of Commerce). So, you’re charged $0 when you transfer funds from your RRSP daily savings account to these other accounts you own within the bank.
Easy Access To Your Funds
You don’t need a long process to access your investment. You’re guaranteed access to both principal and interest on your savings.
Grow Your Savings
You can grow your savings by increasing your investment amount. However, there are other ways to maximize your investment growth. One option is to establish a routine of automatic investments.
Access To A Retirement Financial Advisor
You might have questions or queries during your retirement savings journey. CIBC understands this, so you’d get access to a financial advisor to help you make informed decisions.
Cons of The CIBC RRSP Daily Interest Savings Account
If you’re cool with the above-stated benefits, then here are the drawbacks to look out for:
Low-Interest Rate
The interest rate for this account is 0.01%. This is reasonably low compared to what you might get elsewhere. However, it is a tiered interest rate that’s calculated daily.
Charges on External Transfers
You might need to transfer some funds from this account to other financial institutions. When you do this, be prepared to cough out $100 per transfer.
No Welcome Bonus
What you save plus your interest is what you get with this account. There is no welcome bonus.
Fees of The CIBC RRSP Daily Interest Savings Account
Here are the fees associated with this account.
- $0 monthly maintenance fee
- $0 in-banking transaction fee
- $100 charges in transfers to other financial institutions.
Special Offers
There are no special offers on this account.
Other CIBC Savings Account Options
Some of the additional savings accounts CIBC offers include the following:
- CIBC eAdvantage Savings Account: This tiered interest account offers up to 5.00% interest on your first account opening. It offers regular rates from 0.40% to 1.60% and a “Smart Interest” feature for consistent savers.
- CIBC US$ Personal Account: Designed for US dollar transactions, this account offers tiered interest rates from 0.05% to 0.25%. This makes it ideal for managing USD savings.
- CIBC TFSA Tax Advantage Savings Account: This account offers unrestricted access to your money and a 0.50% interest rate. And it allows for recurring deposits, all with a minimum investment of $25.
How to Open The CIBC RRSP Daily Interest Savings Account
To open this account, you must first meet the eligibility criteria. They are as follows:
- You live in Canada
- You’ve reached the age of the majority in your province.
- You have a valid identity card.
Once you’ve checked the above list, you can open the account. There are two options.
The first is for those who already have a CIBC account. They can simply visit the bank’s website and click on ‘purchase or contribute’ under the registered retirement savings plan DISA.
The second option is for those who do not already have a CIBC account. They need to call the CIBC service centre line on their website or visit any of the bank’s branches in Canada.
CIBC RRSP Daily Interest Savings Account conclusion
If you plan to retire to a beach house near the sea, you can start saving for it with the CIBC RRSP Daily Savings account. Despite the low interest rate, it is calculated daily and paid back monthly.
If you’re looking for other options with better interest rates, you might want to research some alternatives.
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