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Canada's inflation rate sits at 6.8 percent, its highest level in 30 years. Costs for basic necessities, like putting food on the table and keeping a roof over one's head, have gone up by even more. As we all look for ways to cope with the rising costs, how can CCEC help you, our members?

 

For example, now may be a good time to consider consolidating your debts or paying off a higher rate credit card. At CCEC, we provide short term loans to help you cover temporary needs or longer terms for debt consolidation and to help reduce the interest you may be paying.

For those who already own a home, and have a variable rate mortgage, your rates will  steadily increase along with the cost to service the loan. If you have a personal or home equity line of credit, you will also be more impacted by the rising interest rates. With this rising rate environment, we encourage our members to review your options and consider locking in your mortgage for a longer term to help save on future hikes.

At CCEC, we are here to help you. We believe that lending is an investment in our members, our neighbours and our local businesses. Contact us so that we may walk you through your options and work together to see what may be the best fit for you.


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Are you expecting a tax refund for this tax year? If so, what do you plan to do with the funds? While it is very tempting to spend the funds on a holiday, an e-bike or the latest phone, you may wish to consider other options.


The first priority should be to reduce or pay off your debt. Carrying credit card balances, for example, is paying unnecessary high monthly interest charges. Give us a call and ask about a loan to pay off or consolidate your debt.

Reinvesting some of the refund to your retirement savings is a great option. Contributing now to your RRSP is giving you a jump start on a potential tax refund next year. When you reinvest your refund, you start earning interest on your RRSP contribution right away versus only earning interest when you make a tax time contribution. Also consider paying yourself first by contributing monthly, of even a small amount, to your RRSP.  


Make your money work for you. At CCEC, we can help. Investing your tax refund in an RRSP at CCEC is also an investment in your neighbours and local businesses. We have kept our members' money working in the community since we opened in 1976. 


Give us a call first for your lending, borrowing and investment needs.


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The deadline for RRSP contributions for the 2021 tax year is March 1, 2022. Apply at CCEC for an RRSP loan by February 18, 2022.

Do you have March 1 marked on your calendar? If you do, then there’s a good chance you’re already on top of your registered retirement savings plan (RRSP) contributions for this year. The 1st is the last day you can put money into your RRSP and get a tax deduction against your 2021 earnings. If you haven’t decided whether to contribute this year — or if you haven’t set up a RRSP yet — then the answers to these questions might help with your decision.

How much can I contribute to my RRSP? 

You’re allowed to contribute up to 18% of your income to a maximum amount set annually by the Federal Government. You can carry forward any contribution room from previous years, so be sure to review your notice of assessment from the CRA to find out how much. 

Do I need an RRSP if I have a pension? 

Yes, even if you have a good pension at work, an RRSP can help boost your retirement savings. However, having a pension might reduce the amount you’re allowed to contribute in order to reflect the fact that you’re already saving through your workplace pension. 

What happens when I retire?  

You can continue to contribute to your RRSP up until age 71 at which point you need to wind it up. Many choose to convert their RRSP savings into a registered retirement income fund (RRIF) that allows them to take a monthly retirement income. You can convert your RRSP to a RRIF at any age and the amount you are able to withdraw increases as you get older. Learn more about converting your RRSP to a RRIF here.

Is the money I take out of my RRSP tax free? 

No. You get a tax deduction on money that you contribute, so you are delaying paying income tax. When you withdraw money out of the RRSP during retirement or any other time, that income will be taxed just like any other income you earn. 

What happens if I withdraw from my RRSP early? 

If you withdraw money early from an RRSP, you pay withholding tax and income tax. However, there are exceptions. The Home Buyers’ Plan allows you to withdraw up to $35,000 without paying withholding tax in order to buy your first home. Repayments begin two years after and you have 15 years to pay it all back. The Lifelong Learning Plan lets you withdraw up to $10,000 annually to a maximum of $20,000 to pay for full-time education or training for you or your spouse or common-law partner. You’ll find more information about early withdrawal here
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Alerts can help you stay informed. Choose from a variety of alerts that you can personalize to meet your needs. You can receive alerts by email and SMS any time, anywhere. If you have not yet subscribed to alerts follow these few simple steps:

Select where you'd like to receive them - by email or cellphone under "Manage Alert Subscriptions. Select a type of alert from the list. A few more common alerts are: 

  • Online log in
  • Personal Access Code changed
  • Insufficient funds
  • Balance low
  • Future/Recurring Transfer or Payment May Fail
  • Withdrawal Exceeding Limits such as a large ATM withdrawal

You can personalize the alerts you'd like to receive.  Please note we will not include your account number(s) in any alert messages we send to you. Accounts will be referenced by their type or the nicknames you give to them, which can be updated by going to the Extra's tab then Rename Account page.  You can also review the Alert History to see a history of all alerts that were generated. Learn more in our Online Banking FAQ’s

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