Tangerine RSP review

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Earn tax-free interest on your retirement savings when you sign up for a Tangerine RSP Savings Account. 

Looking to save for retirement and lock in some much-needed tax breaks? You might like to check out Tangerine’s RSP Savings Account. As a reputable online bank, Tangerine offers a variety of no-fee savings accounts designed to give you a high return on investment.
The RSP Savings Account lets you earn tax-free interest on your savings and deduct any contributions you make from your taxable income. You’ll also be able to lock in a 2.8% interest rate in your first 5 months if it’s your first savings account with Tangerine.

0.4%

Interest Rate

$0

Minimum Balance

2.8%

Promotional Interest Rate

Details

OfferAs a new Tangerine client, earn 2.80% interest in your first Savings Account (including RSP) for 5 months up to a maximum of $100,000. Offer expires July 30, 2020.
Promotional Interest Rate2.8%
Minimum Balance$0
Account FeeNone
Deposit MethodsMobile/remote check deposit
Bank transfer
Deposit Insuranceup to $100,000
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More Info

Looking to save for retirement and lock in some much-needed tax breaks? You might like to check out Tangerine’s RSP Savings Account. As a reputable online bank, Tangerine offers a variety of no-fee savings accounts designed to give you a high return on investment.
The RSP Savings Account lets you earn tax-free interest on your savings and deduct any contributions you make from your taxable income. You’ll also be able to lock in a 2.8% interest rate in your first 5 months if it’s your first savings account with Tangerine.

Features

  • Interest rate: 0.4% (2.8% for new customers in the first 5 months)
  • Fee: $0
  • Minimum balance: $0
  • Automatic savings option: Yes
  • Deposit insurance: up to $100,000

What are the benefits of a Tangerine RSP Savings Account?

There are a number of benefits associated with Tangerine’s RSP Savings Accounts that could help you reach your savings goals.

  • High interest rates. Tangerine offers some of the best interest rates on the market, especially when compared to Canada’s “Big Five” banks.
  • Gains are tax-free. You won’t pay any taxes on the interest you earn from your savings unless you withdraw the money you put in or exceed your contribution room.
  • Generous welcome offer. If it’s your first savings account with Tangerine, you’ll earn as much as 2.8% interest on any deposit you make in your first 5 months.
  • Automatic savings. You’ll be able to set up automatic withdrawals from your bank account using Tangerine’s Automatic Savings Program (ASP).
  • No fees. You won’t have to pay any additional account fees or service charges to maintain your Tangerine RSP Savings Account.
  • Tax breaks. You’ll be able to deduct the contributions you make to your RSP from your taxable income.
  • Flexible investments. It’s easy to move money between the investments you hold in your RSP, though you won’t be able to withdraw funds without significant penalties.
  • No minimum deposits. It’s easy to get started with as little as $1 because there are no minimum amounts required to open an account.
  • Savings tools. You can utilize Tangerine’s savings calculator to set financial goals and figure out how long you’ll need to save up for them.
Infobox: Understanding RSP contribution room
Currently, all Canadians who are 18 years of age and older can contribute up to $26,500 into their RSPs for 2019. The remaining contribution room that’s available to you will depend on how much you’ve contributed to your RSP in the past. This is because previous unused amounts carry forward to give you a larger max contribution room each year.
If you’re not sure how much you’re able to invest in your RSP safely, you should check your most recent Notice of Assessment or log into your CRA MyAccount for more information. This will help you avoid over-contributing, which can lead to financial penalties from the Canada Revenue Agency (CRA).

What should I watch out for?

While Tangerine RSPs are known for offering a wealth of benefits, there are also a couple of potential drawbacks you should be aware of.

  • Lower rates than online competitors. Depending on what type of account you want to open, some of Tangerine’s online competitors might offer better rates or welcome offers.
  • Fees to transfer funds. While you can transfer funds between your Tangerine accounts for no extra fee, you’ll need to pay $50 to transfer your full balance to another institution.
  • No cash deposits. You won’t be able to make deposits in cash since Tangerine is an online-only bank.
  • Penalties for over-contribution. If you exceed the maximum allowable contribution room for your RSP, you’ll likely have to pay a fee until you withdraw the extra funds.

What should I know before I apply?

To apply for a Tangerine RSP, you’ll need to meet the following criteria:

  • Be a resident of Canada
  • Be 18 years of age or older with a valid social insurance number
  • Have an email account

How do I open an account?

To open a Tangerine RSP Savings Account, you’ll need to fill out a quick and easy online application. Follow these steps to get started:

  1. Click “Go to Site” on this page to be directed to your Tangerine RSP application.
  2. Complete the application, which includes providing your name, email address, social insurance number and birth date.
  3. Create a six-digit login PIN to sign in to your account.
  4. Verify your ID by sending a cheque to Tangerine or by getting your documents verified at Canada Post or a nearby Tangerine Café.

How do I deposit or withdraw money?

You’ll be able to deposit money into your account using your client card at a participating bank machine. Any funds you deposit will go straight into your chequing account, at which point you can transfer them to your RSP. You can also deposit money by sending it to your Tangerine account via e-transfer from another financial institution.

The same process applies when you withdraw money from your account. You’ll send your funds from any Tangerine savings account you hold to your chequing account. This will make them accessible to you via your client card. That said, it’s not recommended that you withdraw money from your RSP since you’ll be taxed heavily on any amount you take out.

Which bank machines let me transfer money for free?

You can use any number of bank machines to withdraw and deposit money for free with Tangerine. These include any Tangerine ABM and any Scotiabank Branch ABM. You’ll also be able to bank for free at over 3,500 ABMs on the Scotiabank ABM Network, including those at 7-Eleven, Quickie convenience stores and Cineplex Theatres. And if all else fails, you can check out Tangerine’s ABM Locator to find a machine near you.

How can I get in touch with customer service?

Tangerine’s customer service team works round the clock to help you with your account. You can get in touch with them using the following numbers:

  • English: 1-888-826-4374 or 416-756-2424
  • French: 1-844-826-4374

If you’re not a fan of talking on the phone, you can also get in touch with Tangerine using online chat weekdays between 8am and 8pm ET and on weekends from 9am to 5pm ET.

You might also want to consider visiting one of Tangerine’s physical café locations to speak directly to an agent if you’re based in Toronto, Vancouver, Calgary or Montreal.

Bottom line

Tangerine is one of the most reputable online banks in Canada, offering a full suite of financial products to millions of clients each year. Tangerine’s RSP Savings Account offers high interest rates on your savings and lets you make tax-free gains for no annual fee. You can also deduct any amount you invest in your RSP from your taxable income each year. Find out what you need to qualify for this type of account and learn how you can apply online today.

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Frequently asked questions about the Tangerine RSP

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