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Me to Me Transfers
December 24, 2017
8:42 am
file
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I don't currently have an account but was looking into them and was wondering if someone who is already a customer can answer a question (as I don't see it on the site). For Me to Me transfers can you schedule recurring transfers out?

December 24, 2017
9:45 am
Shawguy
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No you cannot. They claim they don't have that functionality... Yet Implicity uses the same system and they allow you to set up recurring transfers

December 24, 2017
10:13 am
Top It Up
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ALL DEPENDS - check the FAQs on the link provided (although there is nothing specific with respect to "recurring transfers.)

The Alterna Difference - NEW! Me-to-Me Money Transfer Feature

https://www.alternabank.ca/Personal/EverydayBanking/Me2Me/

December 24, 2017
10:56 am
Nehpets
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I never tried to set up recurring M2M transfers with Alterna, so I investigated my own account in response to this discussion.

Recurring transfers can be set up between Alterna accounts, eg personal account to/from Joint acct. However if an externally linked account is selected as the incoming or outgoing destination, the fields for setting up a recurring choice are removed from the webpage.

Incoming/outgoing recurring M2M transfers at Alterna are not possible.

I can see the rationale for doing so, to preclude the possibility of unintended /unexpected overdrafts.

Stephen

December 24, 2017
12:03 pm
file
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Quite unfortunate. I was thinking that maybe they'd do the same as Motive since the same underlying system as well and just require paperwork to do it. Silly! Since tons of credit unions are using the same underlying infrastructure you would think they'd standardize and also improve things. OH well!

April 4, 2018
6:56 am
ebun
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I recently opened an Alterna eSavings TFSA - you can now set up recurring and future dated M2M transfers! Looks like it's a new feature, and I was pleasantly surprised to see it.

https://www.alternabank.ca/Personal/EverydayBanking/Me2Me/

August 16, 2019
10:10 am
MGrognon
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So just discovered this (awesome) forum, and also Alterna bank. Sorry for bumping an old thread but quick question.

I was thinking of opening a TFSA account with them, but didn't as when I emailed them (August 2019) they said, quote : "Unfortunately, you would not be able to set up recurring automated deposits or withdrawals from a Registered account (TFSA or RRSP)"

From this thread, I gather that you actually can do that ... No? Or am I missing something here?

Worst comes to worse can I not automate a "push" from (Big Bank x) to Alterna for instance on a regular basis? I'm hesitant to open an account as if I can't automate this ; there is no point really.

August 16, 2019
10:28 am
3oakwest
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According to Alterna's site, it would appear that you can set up recurring transfers. See below.

The Alterna Difference - NEW! Me-to-Me Money Transfer Feature

https://www.alternabank.ca/Personal/EverydayBanking/Me2Me/  
What can you do?

Transfer funds into your account from another financial institution
Send money from your account to an account at another financial institution
Fund new accounts (created through Alterna Bank Online Banking) from external accounts if other financial institutions support it
NEW! Now you can conveniently set-up recurring and future dated Me-to-Me Money Transfers

August 16, 2019
12:05 pm
MGrognon
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3oakwest said
According to Alterna's site, it would appear that you can set up recurring transfers. See below.
 

Agreed, that's why I find it weird as this appears to be the case since well over a year now, yet the CR rep that responded specifically said automated transfers cannot be done.

I guess I'll send a follow-up email and point out this Me to Me page on their own website + form and we'll see!

August 16, 2019
2:15 pm
Loonie
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Although the response does seem negative, I would want to parse the word "from" more closely in the response you received.
Technically, you would not be making a deposit "from" your TFSA. You would be making it "to" your TFSA. IN that sense, your question was not answered.
Would there be an option to, for example, transfer from Big Bank to AlternaBank unregistered savings on a recurring basis, than another one to move it from unregistered savings to TFSA, once cleared?
Failing that, could you set up some kind of notification to let you know that the transfer from Big Bank to nonregistered had occurred, reminding you to make a manual transfer to TFSA?
I'm wondering if the sticking point is a direct transfer from external bank to a registered account. I can see where that might not be possible, but should be able to do it through Alterna nonregistered.
I'm just looking for a workaround for you. sometimes it's better to actually speak to someone on the phone in order to be sure you've got a complete answer, even though that doesn't give you a transcript.

August 17, 2019
7:11 am
Norman1
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Outgoing Me-to-Me transfers are not supported on Alterna Bank TFSA and RRSP eSavings accounts. But, incoming ones seem to be, according to their FAQ:

Are Me-to-Me Transfers an option for making contributions to the RRSP and TFSA eSavings Accounts?

Absolutely! Me-to-Me transfers are a fast and convenient way of making a contribution to your RRSP and TFSA eSavings account. However, outgoing Me-to-Me transfers are not available on the RRSP and TFSA eSavings accounts.

August 17, 2019
7:48 am
Doug
British Columbia, Canada
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Thanks, Norman.

You guys have to remember that though many of you use your TFSAs as tax-sheltered HISAs (a mistake, in my view, in that the government is loving you all the way to the bank by letting them lose much, much less and easily forecasted income tax revenue! Suspect @AltaRed and @Briguy will agree with me here sf-cool), certain functionality available in non-registered accounts like Me-to-Me Transfers (a proprietary term; the generic term is bank-to-bank transfers) is not available because the TFSAs and RRSPs are registered plans held in the name of your plan's custodian/trustee, with you as beneficial owner. Often, you can initiate a registered plan withdrawal through online banking, but is not immediate. You are provided with a reference number in case of any problems, but it still must be, at minimum, approved next day by a bank representative.

Cheers,
Doug

August 17, 2019
3:34 pm
Loonie
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Me-to-Me is the term used by AlternaBank.

You can do immediate withdrawals at Hubert, at least from RSP/RIFs. Withholding tax is automatic.

I am not a fan of using savings accounts for TFSAs because it's too tempting for some people to make withdrawals and then lose track of contribution room, but it may be both necessary and possible for some.

August 18, 2019
7:16 am
Bill
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Doug, I'm not following, can you elaborate on how the gov't loses tax revenue when people put money into HISA TFSAs? Money going into a TFSA is after-tax money, and whether that dollar in the TFSA grows to $2 or $20 while in the TFSA when the amounts come out of the TFSA there are no tax implications. What angle are you thinking of?

August 18, 2019
11:08 am
Doug
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Bill said
Doug, I'm not following, can you elaborate on how the gov't loses tax revenue when people put money into HISA TFSAs? Money going into a TFSA is after-tax money, and whether that dollar in the TFSA grows to $2 or $20 while in the TFSA when the amounts come out of the TFSA there are no tax implications. What angle are you thinking of?  

@Bill Good question. Yes, contributions to the TFSA are tax-free and after-tax income. However, what I am thinking of is that by the contributions being tax-free in terms of the capital growth, the government is losing otherwise potential revenue. By keeping your funds in low interest, low growth GICs and HISAs within your TFSA registered plan, you're helping the government to more easily budget for its loss of otherwise potential income tax revenue. By using your TFSA for growth-ier investments, the potential lost potential income to the federal government is much greater. Sure, such investments have a degree of higher risk than GICs and HISAs, but over the long term, they carry with it the potential for government to lose much, much more revenue.

Thus, when I retire with an expected TFSA balance of $750,000, I'll be able to take out ~$30,000 in tax-free income (assuming simplified 4% withdrawal rate and calculation) to supplement my other government and private pension and RRSP income.

In short, I expect to retire with more income than I know what to do with, which is why I plan to severely curtail my RRSP contributions when I resume working full-time next spring-ish and focus my savings on (1) maximizing TFSA contributions and (2) non-registered investments.

Cheers,
Doug

August 18, 2019
2:31 pm
Loonie
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Good strategy, Doug.
The ideal RSP contribution would be the one that, in retirement, keeps you within a lower tax bracket than when earning. With tax-free TFSA income this might be possible. Hard to predict though, and all rules subject to change.
I imagine the TFSAs will be subject to a lifetime cap at some point though, either in contributions or assets. Otherwise, there will be way too many people paying way too little tax and qualifying for way too many freebies in their old age.

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