Best RRSP accounts in Canada for 2024: Top options to maximize your savings
Updated: November 01, 2024
A Registered Retirement Savings Plan, or RRSP, is a government-sponsored savings plan designed to help Canadians save for retirement.
An RRSP itself is not an investment. Instead, it’s a tax-sheltered account where you can purchase various investments, including GICs, mutual funds, stocks, bonds and exchange-traded funds (ETFs).
You’ve landed here because you’re looking for the best RRSP accounts. The key differentiating factor here is an RRSP is a tax-sheltered investment, meaning you can earn money on your money tax-free.
While, yes, you can hold RRSP funds in an interest-bearing savings account, which may carry the least risk since you’re guaranteed the posted rate (though it changes as markets fluctuate), it’s also the riskiest of investments since you could be missing out on investment growth that typically doubles the best RRSP account rates.
However, choosing the proper RRSP account can take some work with so many options.
To help, we break down the different account types, share our top recommendations, and show you how to find the proper RRSP account for your needs.
Comparing the Best RRSP Accounts in Canada | Summary
| Provider | Fast facts | Get started |
|---|---|---|
| EQ Bank |
◦ Best for: RRSP savings
◦ Fees: $0 ◦ Earn rate: 2.75% ◦ Standout feature(s): High standard savings rate |
Go to EQ Bank |
| Tangerine |
◦ Best for: GIC RRSPs
◦ Fees: $0 ◦ Earn rate: 4.20% ◦ Standout feature(s): Attractive yields, no minimum balance |
Go to Tangerine |
| Wealthsimple |
◦ Best for: Robo-advisor
◦ Fees: 0.20% to 0.50%, no account fees ◦ Earn rate: Varies, last year returned 11.30% ◦ Standout feature(s): Automated investing, no account minimums |
Go to Wealthsimpple |
| Questrade |
◦ Best for: ETF Investors
◦ Fees: Free ETF purchases, no account fees ◦ Earn rate: Varies ◦ Standout feature(s): Free ETF Purchases |
Invest with Questrade |
| National Bank Direct Brokerage |
◦ Best for: Commission-free trades
◦ Fees: Stock and ETF trades: $0, $100 RRSP account fee (waivable) ◦ Earn rate: Varies ◦ Standout feature(s): Zero-commission stock and ETF trades |
Go to National Bank's website |
| BMO InvestorLine |
◦ Best for: Bank brokerage
◦ Fees: Stock and ETF trades: $9.95, $100 RRSP account fee (waivable) ◦ Earn rate: Varies ◦ Standout feature(s): Select free ETFs, low trading fees for active traders |
Invest with BMO |
What makes an RRSP account the best?
There is no single “best RRSP account” in Canada. The correct account for you will depend on various factors, including your investment goals, time horizon, and risk tolerance.
For example, if you aim to earn market returns over 25 years, a high-interest savings account or even the best GICs will not be a suitable investment.
Once you’ve determined your objectives, you’ll want to compare the main features of different RRSP accounts, such as fees, investment options, interest rates on savings accounts, ease of use (do you require online or mobile access), customer service options, and any new account incentives or promotions.
Top RRSP account providers in Canada
Most Canadian financial institutions offer RRSP accounts, including banks, credit unions, online robo-advisors and self-directed brokerages. And the best option might be the financial institution you are already dealing with.
With that in mind, we’ve selected our top financial institutions for RRSP accounts.
In our research, we picked each name on our list for having one or more standout features related to RRSPs. In other words, if you’re looking for the best place to open your RRSP account, you'll want to start here:
EQ Bank: Best for RRSP savings
EQ Bank has become a leading Canadian online bank with over $8 billion in deposits. While you can’t invest in equities through EQ, it’s become known for offering high interest rates on deposit products, including checking, savings, and GIC accounts.
Whether you need to open an RRSP savings account to park cash before you invest or make a last-minute contribution, you’ll want to consider EQ Bank.
Its RRSP savings account currently pays 2.75% on all balances. There are no monthly fees, and you can open an account from the comfort of your living room.
Tangerine: Best for RRSP GICs
Like EQ, Tangerine is an online-only bank. It’s the digital banking arm of Scotiabank, one of Canada’s largest financial institutions.
Tangerine’s RRSP savings account rates aren’t as attractive as EQ Bank’s, sitting at a measly 0.30% interest rate. Still, it offers a higher annual percentage rate (APY) on its highest rate GIC.
At the time of writing, you can earn as much as 4.20% for a 1-year registered GIC RRSP through Tangerine.
Another Tangerine advantage is that if you want exposure to the markets when your GICs mature, you can switch to a Tangerine Investment fund, a low-cost, passively managed fund designed to match market returns.
Wealthsimple: Best robo-advisor
Wealthsimple is Canada’s largest robo-advisor and an excellent choice for opening an RRSP account if you want a simple, low-cost, hands-off retirement investment approach. You can open a Wealthsimple Managed Investing RRSP account online within minutes.
Wealthsimple’s robo-advisor will ask you to provide your investment goals and time horizon and construct a customized, well-diversified, and automatically rebalanced ETF portfolio.
Wealthsimple charges a 0.50% management fee on accounts up to $99,999. The cost drops to 0.40% above $100,000. And if you transfer $15,000 or more from another brokerage, Wealthsimple will refund the transfer-out fees.
While its robo-advisor returns vary by year (and your risk tolerance), it returned 11.30% on average last year.
Related: Best robo-advisors in Canada
Questrade: Best for ETF investors
Questrade is Canada’s largest online brokerage and one of our top choices for self-directed investors here at Money.ca.
It’s also our top choice for those who prefer to invest in ETFs with their RRSP. Questrade is one of the only Canadian brokerages that offers free ETF purchases on thousands of ETFs. And unlike many competitors, it doesn’t charge account fees for registered accounts, including RRSPs.
Related: Best online brokerages in Canada
National Bank Direct Brokerage: Best for commission-free trades
If you’re a self-directed investor searching for an RRSP account with commission-free stock and ETF trades, look no further than National Bank Direct Brokerage. It’s the only Big 6 Bank that waives the fees for online trades. While they charge a $100 annual account fee for Registered plans, there are several ways to waive it, including being under 30 years of age.
BMO: Best bank for RRSPs
Canada’s big banks are very similar regarding their RRSP account offerings. All have a broad product selection, but rates for RRSP savings are negligible, and GIC yields are typically not competitive, making it hard to pick a winner.
We’re giving the edge to the BMO for two reasons. Its online brokerage, BMO InvestorLine, provides slightly more value than other bank brokers by offering over 100 free ETFs and low active trader pricing ($3.95 per trade, 150+ trades per quarter).
Unfortunately, you will pay a $100 annual account fee on your RRSP unless you maintain a minimum balance of $25,000 or more.
BMO also offers a robo-advisor called BMO Smartfolio, which allows passive investors to invest in managed ETF portfolios. Annual advisory fees are very reasonable, from 0.40% to 0.70%.
Best RRSP savings accounts in Canada
The intent of an RRSP is long-term retirement savings, but sometimes, you might need to keep cash in your RRSP account. You may withdraw funds shortly under the Home Buyers Plan (HBP) to use as a down payment. Or you may have made a recent contribution but haven’t decided how to invest the money.
In either case, an RRSP savings account allows you to store cash safely in your RRSP while earning a modest return on your money. While traditional financial institutions, such as the big banks, tend to offer minimal returns on RRSP savings, some providers are more generous.
EQ Bank is our top pick for RRSP savings, but here is a longer list of providers offering competitive RRSP savings rates:
| Accounts* | RRSP Savings Annual Percentage Yield (APY%)** |
|---|---|
| EQ Bank RSP Savings | 2.75% |
| Alterna bank RRSP eSavings | 1.85% |
| Motusbank RRSP savings | 1.65% |
| Manulife Registered Advantage Account | 1.45% |
| Simplii Financial RRSP Savings | 0.40% |
| Tangerine RSP Savings | 0.30% |
*To be included on our list, RRSP savings accounts had to be eligible for Canada Deposit Insurance Coverage (CDIC) and have no monthly fees or minimum balance requirements.
**As of October 16th, 2024. Rates subject to change.
Remember, you should only use high-interest RRSP savings accounts to store cash in the short-term.
While these accounts are low-risk, you limit the potential for long-term growth due to the minimal returns offered. Unless you use the funds shortly, you’ll want to move your money into a more investment-focused RRSP account.
Best RRSP investment accounts for Canadians
Canadians, especially younger Canadians1, are steering clear of the high investment fees many financial advisors charge. But while you can save on costs by taking a DIY approach, many aren’t ready to fully manage their RRSP investments. That’s where robo-advisors come in.
These automated investment accounts use advanced algorithms to build portfolios that align with your investment objectives. By removing the high overhead of human advisors and brick-and-mortar locations and following a passive investing strategy, these online platforms can help investors of all experience levels achieve their retirement goals without high fees.
Here’s a closer look at the top investment accounts in Canada.
| Robo-Advisor | Fast facts | Get started |
|---|---|---|
| Wealthsimple |
◦ Management fee: 0.20%* to 0.50%
◦ Investment minimum: $0 ◦ Portfolios available: Classic, Socially Responsible Investment (SRI), Halal |
Wealthsimple robo-advisor |
| Questwealth Portfolios |
◦ Management fee: 0.20% to 0.25%
◦ Investment minimum: $1,000 ◦ Portfolios available: Standard ETF, SRI |
Questrade robo advisor |
| JustWealth |
◦ Management fee: 0.40% to 0.50% annual fee, minimum $4.99/month
◦ Investment minimum: $5,000 ◦ Portfolios available: Over 80 portfolios are available, including SRI portfolios |
JustWealth robo advisor |
| CI Direct Investing |
◦ Management fee: 0.35% to 0.60%
◦ Investment minimum: $1,000 ◦ Portfolios available: Passive, Active, SRI, Cash Equivalent |
Visit CI Direct Investing's website for details |
| BMO SmartFolio |
◦ Management fee: 0.40% to 0.70%
◦ Investment minimum: $1,000 ◦ Portfolios available: 5 Model ETF portfolios; does not offer SRI. |
Visit BMO's website for details |
*To access Wealthsimple’s 0.20% annual fee, you must have invested $10,000,000.
Best self-directed RRSP accounts in Canada
Self-directed RRSP accounts put investors in charge of the decision-making. That means you choose the types of investments you want to hold and how you will allocate your portfolio. You are also responsible for placing trades on your account.
Managing your own RRSP account through an online brokerage has several benefits. It’s low-cost, with some brokers offering commission-free trades, and you have access to a wide range of investment types, including stocks, bonds, ETFs, options, mutual funds, GICs, precious metals, foreign exchange (FX) and more.
To give you an idea of what’s available, here is our list of Canada’s top self-directed RRSP accounts:
| Brokerage | Fast facts | Get started |
|---|---|---|
| Questrade |
◦ Investments offered: Stocks, ETFs, options, GICs, mutual funds, bonds, precious metals, FX
◦ Standard trading fees: Stocks ($4.95 to $9.950 , ETFs ($0), Mutual funds ($9.95) ◦ RRSP account fees: $0 |
Go to site |
| Wealthsimple |
◦ Investments offered: Stocks, ETFs, options
◦ Standard trading fees: Stocks, ETFs ($0), Options ($0.75 to $2 USD) ◦ RRSP account fees: $0 |
Go to site |
| QTrade |
◦ Investments offered: Stocks, ETFs, options, mutual funds, bonds, GICs, new issues (IPOs)
◦ Standard trading fees: Stocks, ETFs, options, mutual funds $8.75, Select free ETFs available ◦ RRSP account fees: $25/quarter* |
Go to site |
| BMO InvestorLine |
◦ Investments offered: Stocks, ETFs, options, mutual funds, bonds, GICs
◦ Standard trading fees: Stocks, ETFs, options: $9.95, select free ETFs available ◦ RRSP account fees: $100/yr* |
Go to site |
| Scotia iTrade |
◦ Investments offered: Stocks, ETFs, options, mutual funds, bonds, GICs
◦ Standard trading fees: Stocks, ETFs, options ($9.99), Mutual funds ($0), select free ETFs available ◦ RRSP account fees: $100/yr* |
Scotia iTrade review |
| National Bank Direct Brokerage |
◦ Investments offered: Stocks, ETFs, options, mutual funds, bonds, GICs, exchange-traded debentures, linked notes
◦ Standard trading fees: Stocks, ETFs, options ($0), Investment funds ($0) ◦ RRSP account fees:$100/yr* |
National Bank Direct Brokerage review |
*Account fees can be waived by meeting certain conditions.
Keep in mind that self-directed investing is not suitable for everyone.
To correctly manage your investments, you must be willing to research the various investment options, rebalance your portfolio as needed and have the discipline to stay invested, even when the markets are down. Only some people are up for the challenge.
How to choose the best RRSP account for your needs
As you can see, there are endless options for investing your RRSP. So, how do you decide which type of RRSP account will meet your needs? Here are some key factors to consider.
✅ Financial goals
Before you invest, you need to consider your financial goals. How many years do you expect to contribute to your RRSP before you retire? Do you plan to borrow from your RRSP for a home downpayment or to help cover education costs? And what other sources of retirement income do you expect to have? Will you have access to a company pension in addition to your RRSP? You’ll want to answer these questions (and more) before opening an RRSP account.
✅ Risk tolerance
Understanding your risk tolerance will help you choose the most appropriate investment for your RRSP and contribute to your success as an investor. Generally, a person with a low-risk tolerance will prioritize safer investments with low volatility, such as savings accounts, GICs or other fixed-income investments. On the other hand, a person with a high-risk tolerance will tend to favour higher-risk assets, such as stocks, ETFs, equity mutual funds and even cryptocurrencies or foreign currency trading (FOREX).
Your investment timeline shapes how much risk you can handle. For example, a high-risk investor with a short time frame is better off choosing a safe investment because they don’t have sufficient time to recover losses if the markets drop in the short term. Conversely, a conservative investor who has 30 years before retirement may accept more risk to generate higher returns.
✅ Investment knowledge
Legendary investor Warren Buffett2 once said, “Never invest in a business you cannot understand.” The same is true when choosing investments for your RRSP. It’s why beginner investors shouldn’t attempt to handpick individual stocks or take on options trading. These investing strategies require specialized knowledge, which comes with years of experience.
Thankfully, many investment options can provide market returns with little in-depth knowledge. For example, you can purchase a managed investment portfolio online through a robo-advisor like Wealthsimple quickly and easily. You will benefit from low fees, global diversification, and automatic rebalancing.
✅ Hands-on vs hands-off approach
Before choosing an RRSP account, you’ll want to decide whether you would rather be hands-on or hands-off with your investments. If it's the former, you might want to open a self-directed RRSP account through an online brokerage. If you prefer the latter, dealing with a robo-advisor or a human investment advisor is likely a more suitable choice. Whatever you decide, understand the tradeoffs with the various options.
✅ How much you’re planning to contribute annually
The amount of money you plan to invest can impact your choice of RRSP account. For example, some accounts have minimum requirements you need to meet to qualify for preferred pricing or to waive annual account fees.
For instance, JustWealth has a $5,000 minimum investment to open an account, whereas you can start with Wealthsimple with as little as $1. Most big bank brokerages require you to have $25,000 invested to waive the $100 annual RRSP account fee. However, Questrade and others don’t charge this fee at all.
FAQ
Summary
If you’re a Canadian resident over the age of majority and you haven’t opened an RRSP account, now is the time. Even if you don’t have much money to contribute, it's never too early to save for retirement. And, the sooner you start, the better, thanks to the magic of compound interest.
Start by considering your financial goals and other factors, such as your risk tolerance, time horizon and type of investor. If you prefer a hands-off approach, check out our list of the best robo-advisors. If you like managing your investments, our guide to the top online trading platforms can provide more information. But ultimately, the most crucial step is to get started.
Colin Graves is a Winnipeg-based financial writer and editor whose work has been featured in publications such as Time, MoneySense, MapleMoney, Retire Happy, The College Investor, and more. Before becoming a full-time writer, Colin was a bank manager for over 15 years.
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