Orientation guide for newcomers to New Brunswick - Government of ...

• you may borrow from your RSP to help payfor your first home or to go to university.You do not have to pay tax on this money.For homes, the amount must be repaid tothe RSP within 15 years, with a minimumannual payment of 1/15th of the amountwithdrawn. For attending university(typically, adults), the amount must berepaid to the RSP within 10 years with aminimum annual repayment of 1/10thof the amount withdrawn; and• RSPs may be savings accounts, GICs ormutual funds.Registered education savings plan(RESP)• RESPs are similar to RSPs, except they areused to pay for post-secondary education;that is, education after high school;• students pay the tax when they take out themoney to use for their education. This willnormally be a very small amount comparedto the amount of tax that would be paidby someone working (sometimes no taxesneed be paid); and• the government gives grants of up to $500per year, per student, which go directlyinto RESPs.Tax-free savings account (TFSA)• since Jan. 1, 2009, banks have offeredsavings accounts and mutual funds withinterest that will not be taxed;• individual will be allowed to contributeup to $5,000 per year; and• the money may be withdrawn at any timeand for any reason with no tax penalty.Moving moneyIf you need to transfer funds outside ofCanada or even to different accounts withinCanada, there are many ways this can bedone. The following is a list of some of themost common ways. For more informationon transferring money contact your bank.Wire transfers• this means moving money electronicallyfrom one bank account to another onelocated almost anywhere in the world;• you will need to know details about theaccount into which you are transferringthe funds. Contact your bank to get theinformation that you need;• there are usually fees for wiring moneyand for converting between currencies. It isoften a percentage of the amount of moneybeing transferred; and• there may be restrictions and extra securityif you are transferring large amounts ortransferring money to certain countries.Western UnionWestern Union is a private company thatmoves money all over the world.• the transfer may be done in personor over the telephone; and• this method allows the other personto get their funds right away.For more information:• toll-free, 1-800-325-6000 ;• www.westernunioncanada.caE-mail money transfersE-mail money transfer is a way to movemoney between people at different bankswithin Canada:• this kind of transfer is usually cheaperand faster than a wire transfer; and• this transfer sends money directly from youraccount by e-mail. The person receiving themoney must accept the transfer.Orientation guide for newcomers to New Brunswick63