Motusbank RRSP Savings Account review

The Motusbank RRSP Savings Account (Registered Retirement Savings Plan) allows you to maximize your retirement savings with high interest rates and Guaranteed Investment Certificates (GICs) that vary in term and earning potential. Like other motusbank products, the RRSP savings account is entirely digital and open to all Canadian residents aged 18 and over.

Features

• Interest rate: 2.5% per year
• Fee: $0
• Minimum investment: $0
• Automatic savings option: Yes
• Deposit insurance: Up to $100,000 by CDIC

What are the benefits of an RRSP savings account with motusbank?

The following are some of the main benefits of a Motusbank RRSP Savings Account:

• Save for the future. With a Motusbank RRSP Savings Account, you can earn interest on your contributions as well as on GIC/term-deposit investments. This combination lets you build a bigger nest egg for the future.
• High interest rate. A Motusbank RRSP Savings Account lets you earn 2.5% on your balance and investments.
• Fees. The monthly fee is $0 for the RRSP savings account.

It’s important to keep in mind that a Motusbank RRSP Savings Account has the same contribution limits as other RRSP accounts. The limits are set by the Canada Revenue Agency. However, you may carry forward any unused contribution space to future years. This is retroactive and applies to previous contribution space you didn’t use.

What should I look out for?

The following are some of the main drawbacks of a Motusbank RRSP Savings Account:

• Limited investment options. motusbank only offers GIC/term deposits for its RRSP savings account. Any of the major banks offer a much bigger range of investment products, including stocks, bonds, mutual funds, exchange-traded funds (ETFs) and others.
• Maximizing contribution space. Given the limited contribution room of RRSP savings plans, motusbank‘s lack of investment options can make it difficult to truly maximize your retirement savings. This means you may have to keep your current RRSP account with one of the major banks.
• No personal touch. Investors who need guidance on their retirement planning don’t have the option of seeing a registered investment adviser to guide them through the process.

How do I open an account?

To open an RRSP savings account with motusbank, follow these steps:

1. Visit motusbank‘s website and select the “Join Now” tab.
2. Scroll down to “RRSP savings account” and select “Open an RRSP”.
3. Confirm you are eligible (more on that below).
4. Fill out the application by providing your personal information, residency status, occupation and primary purpose of your savings account.
5. Complete the identity verification process. motusbank will generate a barcode for you that you need to bring to Canada Post along with government-issued photo ID and proof of address. This information will be sent to motusbank for verification.

Eligibility

To be eligible for an RRSP savings account with motusbank, you must meet the following criteria:

• Be a resident of Canada.
• Have a valid email address.
• Be 18 years of age or older.

Required information

Bottom line

A Motusbank RRSP Savings Account is suited to those who are looking for simple investment options while still benefiting from higher interest rates. Given the lack of investment products available, a Motusbank RRSP Savings Account may be best used alongside other retirement savings plans offered by the traditional banks.

If you want to learn more about how RRSPs work, read our helpful guide here.

motusbank RRSP FAQs

• What's the main difference between a high interest rate savings account and an RRSP savings account?

  The main difference is that an RRSP savings account is used to build a nest egg for retirement, whereas the high interest rate savings account can be used for other saving goals. There are more restrictions on when you take money out of an RRSP account and how much you can contribute. These limitations aren't present with a traditional savings account.

• Can I book a meeting with an adviser to discuss my RRSP savings options?

  Currently, motusbank doesn't let you book a meeting with an adviser because it has no physical branches. This means you'll have to open your RRSP account and start investing on your own. However, you may contact customer support for more information.