Starting Feb. 16, RBC will offer Registered Disability Savings Plans (RDSPs), allowing eligible Canadians to take advantage of 2008 Canada Disability Savings Grants and Canada Disability Savings Bonds.

“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 deadline for 2008 federal government contributions.” says David Birkbeck, head, registered products strategy, RBC.

RBC is the second big bank to make RDSPs available. Bank of Montreal rolled out RDSP accounts in December 2008.

RBC has joined forces with Planned Lifetime Advocacy Network (PLAN), a non-profit organization which led the advocacy for the creation of the RDSPs, to help educate and offer advice to Canadians. As PLAN’s preferred national RDSP provider, RBC will work closely with PLAN to assist Canadians with disabilities and their families.

The RDSP allows 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. The money in an RDSP can be used for any purpose, as long as it is for the benefit of the plan’s beneficiary. Beneficiaries must be a resident of Canada, under age 60, have a Social Insurance Number and be eligible for the Disability Tax Credit as defined in the Income Tax Act.

In order to open an RDSP, Canadians must be:

> a person with a disability who is of the age of majority and has the legal capacity to manage their finances;

> the parent of a person with a disability who has not attained the age of majority;

> a guardian or other representative who is legally authorized to act of behalf of a person with a disability.

Within RDSPs, RBC clients will have access to a wide 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-authorized contributions.

IE