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The Motusbank RRSP savings account is ideal for planning retirement. Retirement is often a dreaded time in an otherwise active person’s life. It comes with a paucity of funds (if not well planned), boredom, and, in the long run, associated medical conditions.
Using Motusbank RRSP (Registered Retirement Savings Plan) has a lot of perks. Most importantly, you not just get to save money, you also get juicy interest rates. The savings plan also comes with certificates called Guaranteed Investment Certificates.
This certificate differs according to the savings term and your earning potential. Motusbank Registered Retirement Savings Plan is available for Canadian residents 18 years and older.
There is a lot more information to know about Motusbank Registered Retirement Savings Plan. Keep reading to find out more.
Features of Motusbank Registered Retirement Savings Plan
- 2.5% interest rate per year.
- Available automatic savings.
- 0$ additional fees.
- Option of up to $100,000 in deposit insurance.
- Minimum of $0 investment.
Pros of Motusbank Registered Retirement Savings Plan
There are benefits that you get from using a Motusbank RRSP Savings Account. You will get to see the benefits explored below.
Saving for Your Retirement And Future
The savings plan is primarily for savings geared towards your future. When you use a Motusbank RRSP Savings Account, you earn interest as you save and invest. This rewards your savings and investment habits.
No Additional Fees
You are assured of $0 in monthly fees when you use the Motusbank RRSP savings account.
Juicy Interest Rates
The interest offered when you use the Motusbank RRSP savings account is up to 2.5%. This is both for investment and savings.
Cons of Motusbank Registered Retirement Savings Plan
Like every other savings plan, the Motusbank RRSP has its disadvantages.
Reduced Limit for Contribution
There is a narrow window for contributions to your RRSP savings plan. Besides this, there is also a reduced range of investment choices. This affects your retirement plans.
Lack of Investment Options
Unlike bigger banks that give their customers different investment choices, Motusbank RRSP has limited options. While other banks offer products like bonds, mutual funds, stocks, and exchange traded funds, Motusbank only offers term deposits.
No Room for Customization
This specifically applies to investors planning for retirement. They often want to see an investment adviser to help them get acquainted with the process.
Motusbank RRSP Savings Account fees
As stated earlier in the pros of using the Motusbank RRSP savings plan, there are no fees.
Requirements for opening a bank account
To open a Motusbank Registered Retirement Savings Plan, there are some eligibility criteria to be met.
- You have to reside in Canada.
- You have to be 18 years of age or older.
- It is mandatory to have a valid email address.
You will need the following data to help you fill out your application seamlessly
- Name
- Email address/phone number
- Social Insurance Number
- Employment information
- The purpose of your account
- Types of account deposit
- Birthday
Step by step guide on opening the account
- Search for the Motusbank website in your internet browser.
- Quickly select “Join Now”.
- Go to “RRSP savings account” and highlight it.
- Choose “Open an RRSP.”
- Read through the options to ensure that you are eligible to open the account.
- Type in your personal data into the required spaces. They include your occupation, Canadian residency status, and other information listed above.
- Finalize your registration by doing an identity verification. A barcode will be given to you, the applicant, by Motus Bank. To complete the process, bring a government ID card and proof of address. You will submit the documents to Canada Post, from where they are then submitted to the bank.
Other account options
There are other account options that are offered by Motusbank. Some of them will be discussed below.
TFSA Savings Account
This account type is useful for those who want to save money for any purpose. The interest that you accrue on your savings in the account is not taxed. This also applies to withdrawals. The tax-free savings and withdrawals qualify the account to fall under the registered plans category.
High Interest Savings Account
This account type is also offered by Motusbank. It is for individuals who want to maximally utilize their long term savings. It is a completely digital process and does not require you to frequently visit the bank.
Motusbank RRSP Savings Account conclusion
The contribution limits for RRSP accounts are set by the Canada Revenue Agency. The limits are also applicable for Motusbank RRSP savings accounts. Contribution spaces not utilized at the moment can be moved years ahead.
There’s often a lack of investment options to prepare for the retirement years ahead. Using Motusbank RRSP Savings Account comes in handy as it can be combined with other savings plans.
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