Royal Bank of Canada or RBC plans to offer registered disability savings plans for eligible citizens to access 2008 Canada disability savings grants and Canada disability savings bonds, starting February 16, 2009.
The company has said that these registered disability savings plans (RDSP) will allow eligible Canadians to save and invest for themselves or for a family member while deferring tax. Contributions may be eligible for federal government matching grants up to $3,500 annually and the plan may be eligible for government bond amounts up to $1,000 annually.
Beneficiaries must be a resident of Canada, under age 60 years, and have a social insurance number. They should be eligible for the disability tax credit as defined in the Income Tax Act of Canada.
Within RDSPs, RBC clients will have access to a variety of investment options including RBC Funds, RBC GICs and RBC Savings Deposits. There will be no annual administration or withdrawal fees. Clients will also have the opportunity to make regular, pre-authorised contributions through RDSP-Matic.
David Birkbeck, head of registered products strategy at RBC, said: RDSPs are designed to help Canadians with disabilities and their families ensure long-term financial security. Our role at RBC is to help Canadians understand how they can benefit from the RDSP and we are encouraging clients to take advantage of these new plans prior to the March 2, 2009 deadline for 2008 federal government contributions.
