The Registered Disability Savings Plan is one of the best government programs in Canada — up to $3 for every $1 you contribute through grants and bonds. But finding a place to actually invest an RDSP is frustratingly limited. Here's what works.
Most discount brokerages either don't offer RDSPs or make them extremely difficult to open. Questrade doesn't offer RDSP accounts. Wealthsimple Trade doesn't either. That leaves bank branches and full-service brokerages — which means mutual funds, often with 2%+ MERs.
This is a genuine failure of the Canadian financial system. RDSP beneficiaries — people with disabilities qualifying for the Disability Tax Credit — get steered into the most expensive products because they have the fewest platform choices. The government gives you a 300% match through grants, then the fund industry takes a cut through high MERs.
A 2% MER on an RDSP is especially painful. With government grants (CDSG) matching up to $3 for every $1 contributed, an RDSP can grow fast. A $200,000 RDSP paying 2% MER loses $4,000/year in fees. Over 20 years, that's easily $100,000+ in fees that could have stayed invested and compounding.
Your platform choice determines your investment options. Here's the real comparison.
| Platform | RDSP Available? | Investment Options | Typical MER | Notes |
|---|---|---|---|---|
| BMO | Yes | Mutual funds, GICs | 1.5-2.2% | Branch setup. BMO index funds at 0.85% available. |
| RBC | Yes | Mutual funds, GICs | 1.7-2.1% | Branch setup. RBC index funds at 0.55% (Series D) if available. |
| TD | Yes | Mutual funds, GICs | 0.28-2.1% | TD e-Series available. Best bank MF option for RDSPs. |
| TD Direct Investing | Yes | ETFs, stocks, MFs | 0.20% | Full self-directed. Buy ETFs like XEQT. Best overall option. |
| National Bank Direct Brokerage | Yes | ETFs, stocks, MFs | 0.20% | Commission-free ETFs. Solid RDSP option. |
| Questrade | No | — | — | Does not offer RDSP accounts. |
| Wealthsimple Trade | No | — | — | Does not offer RDSP accounts. |
| Wealthsimple Managed (Robo) | Yes | Managed ETF portfolio | 0.40% + ETF MER | Good hands-off option. ~0.60% all-in. |
Best RDSP setup for lowest fees: Open a self-directed RDSP at TD Direct Investing or National Bank Direct Brokerage. Buy a single all-in-one ETF like XEQT (all equity, 0.20% MER) or XBAL (balanced, 0.20% MER). Set up automatic contributions. Total cost: 0.20% — ten times cheaper than a bank branch mutual fund.
If your RDSP is at a bank branch and you can't access ETFs, here are the least-expensive mutual fund options.
| Fund | Code | MER | Type | Why It Works for RDSP |
|---|---|---|---|---|
| TD e-Series Canadian Index | TDB900 | 0.28% | Canadian equity | Cheapest bank MF. Auto-contributions. |
| TD e-Series U.S. Index | TDB902 | 0.33% | U.S. equity | S&P 500 exposure at low cost. |
| RBC Canadian Index (Series D) | RBF556 | 0.55% | Canadian equity | Available at RBC Direct Investing. |
| BMO Balanced ETF Portfolio (Series A) | BMO93814 | 0.85% | Balanced | One-fund solution at BMO. Not cheap, but better than 2%. |
| Tangerine Balanced Portfolio | INI220 | 1.06% | Balanced | Simple, auto-rebalanced. Tangerine offers RDSPs. |
Tangerine is underrated for RDSPs. At 1.06% MER, it's not the cheapest, but Tangerine offers RDSPs online (no branch visit), supports automatic contributions, and the Balanced Portfolio is a single-fund solution that rebalances itself. For someone who wants zero maintenance, it's a reasonable middle ground. Much better than the 2%+ MER funds you'd get pushed at a big bank branch.
Canada Disability Savings Grant (CDSG): The government matches your RDSP contributions up to $3,500/year, depending on your family income. Low-income beneficiaries get $3 for every $1 contributed on the first $500 (300% match), then $2 for every $1 on the next $1,000. Higher-income beneficiaries get $1 for every $1 up to $1,000. Maximum lifetime grant: $70,000.
Canada Disability Savings Bond (CDSB): Low-income beneficiaries receive up to $1,000/year even if they contribute $0 to the RDSP. You read that right — the government deposits money into your RDSP for free if your income is below ~$36,500. Maximum lifetime bond: $20,000.
Carry-forward: If you haven't been claiming grants, you can carry forward up to 10 years of unclaimed grant entitlements. A $1,500 contribution in a carry-forward year can trigger up to $10,500 in grants. This is the single best return on investment available to any Canadian.
Priority order: Get the grants first, optimize fees second. Even a 2% MER mutual fund in an RDSP is better than no RDSP at all, because the grant match (100-300%) dwarfs the fee drag. Open the account, claim the grants, then worry about switching to lower-fee investments.
The Assistance Holdback Amount (AHA): If you withdraw from your RDSP within 10 years of the last government contribution (grant or bond), you must repay $3 in grants/bonds for every $1 withdrawn. This makes early withdrawals devastating. An RDSP is meant to be a long-term savings tool — treat it that way.
Lifetime Disability Assistance Payments (LDAPs): Starting at age 60 (or earlier by choice), you must begin annual withdrawals. The maximum annual withdrawal is calculated by a formula: basically your RDSP balance divided by (80 minus your age) plus 3. This prevents the account from being drained too quickly.
What this means for investment choice: Since RDSP money is locked up for decades for most beneficiaries, a growth-oriented portfolio makes sense. Heavy equity allocation (80-100% stocks via index funds or ETFs) gives the best long-term expected return. Don't let a bank advisor put your 25-year-old's RDSP into a conservative balanced fund.
The government gives you up to $90,000 in free money. Make sure your fund fees aren't quietly taking it back.
MER Fee Calculator Low-Fee Fund OptionsNothing on this site is financial advice. RDSP rules, grant amounts, and withdrawal formulas are subject to change. Verify current information at canada.ca/rdsp. This guide covers general RDSP investment options; consult a financial advisor familiar with disability planning for your specific situation. Some links on this site are affiliate links.