The facts are:

• You are less likely to save, unless you have an unavoidable payment you have to make every month. An RSP Loan will have a month amount automatically deducted the same time every month.
• RSP Loans offer very competitive interest rates! See below for a very good example.

Case Study:

Take out an RSP loan from ING Direct. The interest for the loan is 3.0% per year. Payment term is over 12 months

• A $5000 loan will result in a monthly deduction of $423.67, and total cost of borrowing of $81.64.
• A $10000 loan will result in a monthly deduction of $846.94, and total cost of borrowing of $163.28.

The most convenient option for you is to invest their RSP Loan in one of their Investment Accounts. They have several accounts offering varied benefits. One particularly attractive option is the RSP Short-term GIC Account, offering an interest rate of 3.0% with a rollover period of 90days. If you pick this option for the year, you essentially don’t pay a cent as borrowing cost for the RSP Loan.

ING Direct offers so many convenient options for saving money and investment. They are particularly a good choice for people who have problems putting away money, because of their Automatic Withdrawal Program. The money is taken away from your current account (at a schedule you define). While you maintain quick access to your money (via their Debit card or a one-day request deposit into your account), it segregates your savings from your day-to-day activities, thus allowing you the ability to resist temptations.

If you are interested in signing up, I highly recommend you do so via the link below, and enter the Orange Key during you sign-up. This gives you a $25 bonus – and I get one too : ).

http://www.ingdirect.ca/referafriend/
Orange Key: 16236353S1