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Pay yourself first

Pay Yourself First

We’re inviting you to take a practical step towards successful saving – starting now. There’s a simple and convenient way to reach your dreams, whether it be saving for retirement, creating an emergency fund, saving for a vacation or whatever other financial goals you may have. Pre-authorized savings contributions can get you there. Read on to find out how this advice really adds up.

How pre-authorized contributions help you

Pre-authorized contributions allow you to contribute to a Registered Retirement Savings Plan (RRSP), Tax Free Savings Account (TFSA), or Registered Education Savings Plan (RESP), among others. You choose an amount to be automatically deducted from your chequing or savings account on a regular basis and deposited directly into the investment account of your choice.

The many benefits of pre-authorized payments:

Grow your savings. Watch your savings grow more quickly with ongoing contributions. As an example, if you automatically contribute $150 at the beginning of each month, your RRSP will grow to $22,087 in just 10 years (assuming a 4.0% annual rate of return).*

Avoid the last-minute scramble. Maximize your annual RSP contributions by making regular deposits, rather than waiting until the deadline every year.

Pay less taxes now. Rather than waiting for your tax refund, you can simply notify the Canada Revenue Agency of your regular RSP contributions so they can instruct your employer to deduct less income tax from each paycheque. Pick up a “Request to reduce tax deductions at source” form from your local tax office.

Avoid market timing guesswork. By regularly contributing to your savings into a RRSP, for example, you can eliminate the guesswork that comes with the question of “When’s the best time to invest?”. It is one of the most efficient ways to invest and it acts to smooth out the peaks and valleys of market fluctuations.

You can choose to contribute weekly, bi-weekly, monthly, quarterly, semi-annually, or annually. Your chosen amount will be automatically transferred from your Scotiabank (or any other Canadian financial institution) account to the Scotia® investment account of your choice.

Investment options include all high-interest savings accounts, and mutual funds, with all applicable minimum investment amounts. (Check with your Scotiabank advisor for details). You can change how much or how often you contribute, or cancel the service at any time, either by notifying us in writing, or by speaking with your advisor.

Getting started is easy with Scotiabank. Simply choose how you would like to set up your pre-authorized contribution:

  • At your local Scotiabank branch
  • Online with Scotia OnLine banking
  • By calling 1 800-953-7441 and asking to speak with a Scotiabank advisor

Points to keep in mind

Savings grow more quickly with ongoing contributions
Maximize your annual RSP contributions with regular deposits
Don’t delay - the sooner you start, the quicker your savings grow

Pay yourself first tool
  • * calculation based on an average annual rate of return of 4%, and contribution of $150 per month made at the beginning of each month for 10 years. Savings rounded to nearest dollar. This example assumes no withdrawals from the RSP and constant annual returns for each product held within the RSP which are compounded annually. Actual returns will vary depending on several factors including varying interest rates, your investment choices, the outstanding balance and the amounts and timing of contributions to the RSP. The returns you earn may not be compounded. The returns cited are for illustration purposes only.