A pre-authorized contribution (or PAC), automatically deducts a specified amount on a regular basis from your chequing or savings account, and deposits it directly into your Scotia® RSP, RESP or non-registered Scotia Securities Inc. (SSI) account. |
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 Pay Yourself
First ToolsSee how easy it is to achieve your dreams through regular and automatic savings.
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Here's how it works:
- You can choose to invest weekly, bi-weekly, monthly, quarterly, semi-annually, or annually.
- We'll automatically transfer the money from your bank account at Scotiabank or any other selected Canadian financial institution to the SSI account you choose.
- Investment options include all Scotia® Mutual Funds and our Daily Interest Savings/Gain Plan Investment Savings accounts.
- You can change how much you invest and how often you invest, or cancel the service by advising us in writing.
Pre-authorized contributions can be set-up for the following SSI accounts:
The benefits are rewarding:
By investing on a regular basis through pre-authorized contributions, you can build your assets easily and automatically while enjoying the benefits of dollar cost averaging. When you invest a fixed amount of money on a regular basis, you don't need to worry about trying to predict the highs and lows of investment markets.
When the unit price is higher, your investment buys fewer units. Over time, this can have the effect of lowering the average cost of your investments compared to lump sum investing.
Example: $100 invested monthly for 5 months
| Total units purchased: |
51.9 |
| Multiplied by latest price (end of May) |
$10 |
| Total current value |
$519 |
| Total invested |
$500 |
| Gain |
$19 |
Chart is for illustration purposes only. It does not indicate the performance of any particular investment.
In the above example, an investment of $100 per month for 5 months (total investment = $500), results in the purchase of 51.9 units of a fund, at an average cost of $9.63/unit ($500/51.9 units). If the full $500 had been invested at the beginning, the total units purchased would have been 50, at a price of $10/unit. The effect of dollar cost averaging has reduced the average cost per unit.
When you invest regularly, you generate returns on the amount you invest each month as well as on the amount that money has earned.
As a result of this "compounding", your portfolio has the potential to grow faster than if you made a single contribution. And if you are contributing to an RSP, pre-authorized contributions help to ensure you will not have to scramble to make your contribution at the last minute.
Your target savings could be simply one hour of your pay each day. If that's too much at this time, start small, say $25 a paycheque, and work up from there. Try our Future Value Calculator to see how easy it is to save automatically. Once you see how easy it is, you can consider increasing your savings amount gradually over time.
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