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    Rdsp

    I thought I had seen a post about this the other day, but I can't find it through the search function on the site. Anyway, I'm eligible for the DTC and received a note attached to my assessment that I can open an RDSP. My problem is that I'm not sure where to go: I can't seem to find a lot of information online, as most sites are just reiterations of the basics. I recently went to CIBC to open an RDSP-eligible TSFA and got put through the wringer; I know that they're there primarily to sell you stuff, but I'm a gullible sap, and ended up getting into unnecessary accounts. I closed everything through CIBC at the advice of my wife. We are really upset that the employee showed no interest in helping get the RDSP set up, even though we were told that that was what was going to happen when I called the bank number (a lot of people suggest setting up a meeting through the bank's main phone line, as employees aren't generally knowledgeable about the program). We just want a place to park funds while we do more research on securities, which is why we opted for CIBC (one of the few institutions whose website listed a TSFA as a viable vehicle for RDSP), but the rep I talked to continued to tell me that I'd have to talk to CIBC securities and invest through them with mutual funds. Does anyone here have any suggestions of a TSFA where we can place our funds to get the ball rolling/garner government funds associated with the RDSP?

    #2
    Hello Guilt-n-shame. I can sympathize with you trying to get someone to explain an acct(s) to you. None of the banks seem to want to do much in person unless an appt is made and even then they may try and sell you extra's. All of the major banks carry RDSP and TFSA accts Credit unions tend to be a little better but may not have all of the services that major banks have, but they usually have contacts that can help. For example https://www.duca.com/mymoney/investm...ine-investing/ I don't know much about Duca, but I don't know where you live either to suggest another credit union so Duca is just an example.

    I know that you are running out of time as the deadline is Dec 31st and as the closer you get to the deadline the harder it's going to be to get an appointment especially with Christmas coming along. This gov't site may help more. http://www.cra-arc.gc.ca/E/pub/tg/rc...c4460-16e.html

    Also, while may places will say that there is no withdrawal fee, always ask them what it will cost to close the account and/or transfer it to another bank. Sometimes the fees can be quite high. I'm not sure what the bank is talking about when they say that a TFSA is a viable vehicle for a RDSP.

    Good Luck and Take Care. paul m

    For those who don't know RDSP stands for registered disability savings plan. The gov't will put in multiple of what you put in. Example, by putting in $500, you may get $1500 to a max of putting in $2500 and the gov't will put in $3500.

    There are always catches. 1) you have to have a disability tax certificate, 2) you have to be 49 or under to contribute 3) if you withdraw even one dollar , you must pay back 100% of what the gov't has put in over the last 10 yrs, 3) any interest and/or investment income plus any money the gov't put in is taxable when you take it out( the plan must be collapsed by the time your 60, although there are further provisions for payment over time. It is complicated and the deadline is Dec 31st http://www.cra-arc.gc.ca/E/pub/tg/rc....html#P44_1111 . Anyone with a low income and a DTC should have one of these, even some people with higher incomes may benefit. Unfortunately I was too old by the time this came out.

    It is much different than a RRSP The money you put in is not tax deductible.
    "Alone we can do so little;
    Together we can do so much"
    Helen Keller

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      #3
      Thank you, Paul!

      Edit: I'm really lost as to where is the best place to apply. There are lots of recommendations for TD e-series index mutual funds, but TD doesn't offer a regular savings account for RDSP (at least not on their website, and I'm trepiatious about calling because I have poor social skills/I'm a pushover, even more so over the phone). Anyway, thanks!
      Last edited by guilt-n-shame; December 8, 2016, 07:08 PM. Reason: More info

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        #4
        Hello Guilt-n-shame. Reading any banks website and/or listening to their sales pitches can be taxing to say the least. I couldn't find a savings acct at the TD website either, but they do have have RDSP cking acct with the appropriate cking acct fees of course. Other than that, all I can see is that a person with a RDSP can invest in short term deposits and term GIC's . You could also try calling their help line and/or send your questions via email to them https://www.tdcanadatrust.com/custom...il/contact.jsp

        I will admit that I have no idea how well contacting them by phone or email will work. Good Luck and Take Care. paul m
        "Alone we can do so little;
        Together we can do so much"
        Helen Keller

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