The RRSP 2025 contribution deadline is today. Should you transfer yours to get a bonus? #CanadaFinance

The deadline for Canadians to contribute to their Registered Retirement Savings Plan (RRSP) is today, March 3. This year, many financial institutions and brokerages have offered bonuses for Canadians to transfer their RRSPs. With some struggling to save up for retirement, as outlined in a recent Edward Jones Canada survey, should you consider taking advantage of these promotions?

A lucrative transfer bonus could make up for missed contributions, if the future cash rewards are used towards an RRSP. But there’s more to the equation than just the headline offer, says Tangerine Bank’s senior vice-president of retail banking Gaurav Singh.

There are several things to consider before evaluating a transfer offer or bonus, Singh says in an interview with Yahoo Finance Canada. The first is knowing what your own financial goals are for your RRSP.

“[Have] clarity around your goals, whether they are short-term, medium-term or long-term goals, and that you’ve clearly identified and prioritized them as well,” he said.

It’s also important to know your risk tolerance, and checking that tolerance against a potential institution’s offerings. If its investment options don’t suit your risk appetite, that mismatch may not be worth the transfer bonus in the long run.

Brenda Hiscock, a financial planner with Objective Financial Partners, agrees that investors seeking to move assets for a transfer bonus need to have their goals in mind, especially if they’re planning on withdrawing from their RRSP in the near future.

Though an institution might have an attractive offer, there’s also a more important backdrop to take into account: how the competitor operates.

Singh says this means digging into the fine print of the offer and making sure you understand potential fees for buying and selling after the transfer, or any currency fees if you invest in non-Canadian investments.

He also suggests viewing the institution in a broader lens, not just for the RRSP bonus. Asking yourself if the competing bank or brokerage has products such as exchange-traded funds (ETFs), or enough choice to suit your personal needs is critical, he says, along with reviewing the competitor’s other banking offerings “that can round out your overall portfolio.”

“Do they also have other solutions for you as well that are also non-registered? Are they helping you with your checking account and having no daily banking fees? Are they helping you with a good interest rate on your savings accounts?” Singh said.

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