Tag Archives: RRSP

How to Make a RRSP Contribution Quickly and Easily Using ING Direct

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If you already bank with ING Direct now Tangerine.ca like we do, you can make a RRSP contribution in under two minutes, including getting your RRSP contribution slip for your income taxes. We used to make contributions at our “Big 5” bank when we were younger. Even though they were fairly quick about it, we still usually had to spend an entire lunch break getting it done. The first time we made a RRSP contribution online with Tangerine ING, I couldn’t believe how quickly and easily we got the job done.

UPDATE: Please be aware that as of January 2015, Tangerine has started charging a fee if you transfer your RRSP or TFSA from Tangerine to another bank, credit union, brokerage or financial institution.

As of the time this was written, in October 2013, ING Direct Tangerine does not charge any fee to transfer all or part of a RRSP to another institution. (Please see: Does It Cost Anything to Transfer Part of my Tangerine RRSP to Another Institution? (You can’t transfer a GIC, though, until it matures.) So we often make our initial contribution to our RSP Investment Savings Account at Tangerine, and then transfer it elsewhere at our leisure.

(Sometimes we just keep it at Tangerine and buy a RSP GIC if they are offering a great rate. Keep an eye out on unusual days like “Cyber Monday” and “Black Friday” if you’re interested in unusual GIC rates.)

Making a Contribution to a RSP Investment Savings Account at Tangerine

Before starting this procedure, check to make sure you still have room to contribute to your RRSP. Remember you’ll have to pay a ridiculous level of tax on any over-contributions.

  • Log in to your Tangerine.ca account.

If You Already Have a RSP Investment Savings Account at Tangerine

  1. From the links on the left side of the screen, click on Move My Money
  2. In the Amount ($): field, type the amount you want to contribute.
  3. From the From: drop-down list choose the account from which you want to fund the RSP Investment Savings Account.
  4. From the To: drop-down list, choose your RSP Investment Savings Account.
    A message will be displayed reminding you to check your available contribution room.
  5. In the When: section, select the radio button beside
    • Now
    • Later; or
    • Ongoing

    I selected Now.

  6. Click on the Go button.
  7. Review the details. If they look ok, click on the Go button.

You’re done!

Copy the confirmation number and information and paste it into a document to save until you’re sure the transaction went through properly.

If You Don’t Already Have a RSP Investment Savings Account

  1. Click on the tab at the top of the screen called Savings.
  2. In the RSP Investment Savings Account section, click on the Open Account button.
  3. Review your name, address, date of birth and social insurance number.
  4. If they are correct, in the Amount: field, type the amount of money you want to contribute to your RRSP.
  5. If desired, type a Nickname for the account. (For example you could type: 2013 first contribution)
  6. In the Fund from this Account: section, from the drop-down list select from which account to take the money.
  7. In the Effective Date field, review the date and change it if needed.
  8. Answer the anti money-laundering and registration questions.
  9. Click on the Next button.
  10. Review all of the information. If it’s correct, to set up and fund the RSP Investment Savings Account, click on the Go button.

You’re done!

Copy the confirmation number and information and paste it into a document to save until you’re sure the transaction went through properly.

To Print Your RRSP Contribution Receipt for your Taxes

Oh crumbs. I forgot that you can’t print the 2013 contribution receipts until January 2014. I’ll have to wait. However, here’s how you would do it then:

  1. From the list of links on the left side of the screen click on the My Documents link.
  2. Click on Tax Receipts.
  3. From the drop-down list, select the year you made the contribution.
    For example, select 2013. (once you can!)
  4. Look for your name under the RSP – RRSP contributions section.
    • If you made the contribution in 2013 after February, it will say (Balance of Year).
    • If you made the contribution before March, it will say (First 60 days)

    Click on your name to open the receipt.

  5. Click to select Open with Adobe Reader, then click OK.
  6. Click on the Printer icon to print your income tax receipt.
  7. Close the document.

If You Have Finished Banking with Tangerine

  • Click on the Log me out link.
    For added security, close your browser session.

Imagine No Lining Up Till Midnight at Your Bank to Make a RRSP Contribution!

The best part about this fast, simple way to contribute is that if you suddenly realize you have a bit more money you can contribute and it’s the last contribution day, usually February 28, you can login and be done in minutes! No more walking to the bank through a snowstorm and waiting in line!

UPDATE: Please be aware that as of January 2015, Tangerine plans to start charging a fee if you transfer your RRSP or TFSA from Tangerine to another bank, credit union, brokerage or financial institution.

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Do you ever use Tangerine as a quick way to make a contribution that you then take the time to move to its final well-planned resting place later? Please share your experiences with a comment.

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How to Buy Units in a High Interest Savings Account Fund in a CIBC Investor’s Edge Account

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Recently, I’ve been tidying up our investments in our CIBC Investor’s Edge RRSP account. These included some bond mutual funds that were purchased as part of a self-rebalancing mutual fund investment portfolio about 20 years ago. The actual dollar amounts invested were negligible and the returns of the funds were reasonable on a percentage basis but miniscule in a real dollar way. Instead of keeping this money in risky foreign bond mutual funds, I decided to sell them and temporarily park it in a HISA while I decide where better to invest it. Here’s how to buy units in a daily interest savings account fund, such as ATL5000, in an Investor’s Edge Account.

(This approach is intended for registered accounts where you can’t just shift the money to a conventional high interest savings account at another bank. For example, for TFSAs, RRSPs, RRIFs, LIRAs, RESPs, RDSPs, etc.)

Just How “High” Is the “High Interest” Offered in a HISA Fund?

Don’t get your hopes up.

Today, in October 2013, ATL5000 the Renaissance HISA fund, is paying 1.25% per year. Yep, that’s $12.50 if you invest $1000 for an entire year. Still that would buy me a large dim sum lunch with tax (before tip).
UPDATE: On March 18, 2017 ATL5000 is paying 0.75%.

For more info on ATL5000, you can visit Renaissance’s website.

Buying ATL5000 in an Investor’s Edge Account

  1. Sign On to your Investor’s Edge account.
  2. From the link list on the left side of the screen, click on Trading.
  3. From the link list on the left side of the screen, click on Trade Mutual Funds.

On the Mutual Fund Order Entry Screen

  1. Ensure that the Account selected is the correct one for the transaction.
  2. From the Action: section, select
    • Buy; or
    • Buy More of Holdings (if you already have some units of ATL5000 in this account)

    by clicking the radio button beside the appropriate phrase.

If You Are Buying Units of ATL5000 for the First Time

  1. In the Mutual Fund: section,
    click on the Mutual Fund Search link.
  2. In the Keyword box, type ATL5000 and click on the Search button.
  3. Review the details about the Renaissance High Interest Savings Account.
    It states that this is a Front End load fund. It is true that the issuer, Investor’s Edge, is paid a commission. It’s paid by Renaissance, though, not you, so while your interest rate will be lower because of the fee, you will not actually give up any principal to pay.
  4. Click on the Buy link.
    You will return to the Mutual Fund Order Entry Screen.

If You Are Buying More Units of ATL5000

  1. In the Mutual Fund: section,
    click on the drop-down list.
  2. You will see all of your mutual funds. Just highlight to select ATL5000.

Continuing Down the Mutual Fund Order Entry Screen in Both Instances

  1. If desired, click on the Get Quote button. Because this is a daily interest savings account, the price should always be $1 CAD per unit.
  2. In the Amount: section, type the amount you wish to put into your savings account in dollars, or in units, which is the same thing anyway!
  3. In the Dividend Section, select either
    • Reinvest in Units Of This Mutual Fund; or
    • Deposit Cash To Brokerage Account

    by clicking on the appropriate radio button.

  4. In the Pay From: section, ensure that the correct account is selected.
  5. Click on the Next button.

To have fun, I tested buying an additional $100.
The system replied “The order Amount is less than the minimum allowed value.”
In fact, it wouldn’t let me buy an additional $200, $300, $400, $500, $600, $700, $800, or $900 either. I had to buy $1000 additional units to proceed.

(NOTE: If I had only $40 to add to my HISA, I could have sold 1000 units of the HISA, and once the cash was back in my account, purchased $1040 units. It would cost me a few days of daily interest, but it could be done.)

Finalize the Purchase

  1. Review the purchase details. If they look OK, in the Trading Password field, type your password.
  2. Click on the Submit Order button.
  3. Copy and paste your confirmation including the Order Tracking Number into a document and save it until the transaction is properly reported for your account.
  4. If you are finished with your Investor’s Edge account, click on the Sign Off button.
    For increased security, clear your browser history and cache and close your browser session.

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Do you park your cash in a high interest account while you decide where to re-invest? Does the phrase “high interest” make you laugh? Please share your experiences with a comment.