If you’re like most people, you already have a financial institution and a savings or chequing account. So when you open an RDSP, the first thing to ask is: does your current financial institution offer the RDSP? If so, then your choice might be fairly easy.
If you do not yet have an account with a financial institution, or your financial institution does not offer the RDSP, you will need to choose one. Most major financial institutions now offer the RDSP. Check here for updates.
Before you decide, here are some questions to ask. The answers will help you choose the financial institution best for you.
What to ask before you choose a financial institution for your RDSP:
- Is the financial institution easy to get to?
- Is it accessible?
- Is there someone available, by phone if I prefer, who can clearly explain how RDSPs work?
- Is the person who will be advising me, licensed to sell this investment product?
- What administrative or management fees will I pay, if any?
- Can I make direct deposits into the RDSP?
- What choices do I have to invest my RDSP?
- Are there any rules that limit the amount I can withdraw?
These are just some questions that may help you find a financial institution that is comfortable for you to go to. Use this checklist to help you compare your options.
Remember: RDSPs can be confusing.
You may want someone at a local branch to talk to you or you may be happy to talk to someone over the telephone. Choose the way that is easiest for you. The relationship with your financial institution is important. It should be a comfortable place to do business.
Content in this section is provided in partnership with the Investor Education Fund, a non-profit organization promoting financial literacy to Canadians. To find out more go to GetSmarterAboutMoney.ca.