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EQ reduces rate on 3 month registered funds
April 29, 2022
1:36 am
Loonie
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Registered 1.55

non-registered 2.00

April 29, 2022
4:50 am
dougjp
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Don't like seeing this at all. IMO they are playing the old shell game of (essentially) "trapped funds", as its not in keeping with market conditions at all. Yes I know TFSA in particular can be withdrawn at any time, but you know what I mean for all practical purposes.

Its what CTC bank did years ago that gave them a bad name, with the "come on" early in the fiscal year (TFSA/RRSP) short term rates, and then make sure nothing attractive short term in these categories exists after 3 months or so for the balance of the same year. Net result = recouping all and more of their lower margins on funds for the come on period.

For those who remember what CTC did 2 years in a row, they stated "this (excellent savings rate) is not a promotional rate" in January, then dropped the TFSA savings rate beginning of April in a rising rate market (like we are in now).

Won't be forgotten come December TFSA "withdrawal time", if any other viable options exist then. sf-yell

" We may never pass this way again " - Seals & Crofts

April 29, 2022
4:11 pm
phrank
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This is why I will not put registered funds into an institution which charges transfer fees. Sure, you can usually get the receiving place to cover them, but I don't want to deal with it, except for with TFSAs that I'll just withdraw at the end of the year.

I've complained to EQ about this before.

April 30, 2022
8:54 am
Vatox
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Yep, should be the same rate! I like EQ so I’m just using the longer terms, but since we are pretty sure rates will be higher in 3 months, that term should have a better rate than 1.55 and the 2.0 is probably just right. The 6 month is 2.05sf-laugh

April 30, 2022
9:02 am
cgouimet
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phrank said
This is why I will not put registered funds into an institution which charges transfer fees. Sure, you can usually get the receiving place to cover them, but I don't want to deal with it, except for with TFSAs that I'll just withdraw at the end of the year.

I've complained to EQ about this before.  

Which FI don't have transfer fees on registered accounts?

CGO
April 30, 2022
10:38 am
HermanH
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Neither Hubert nor EQ charge fees to transfer RRSP and TFSA accounts.

April 30, 2022
10:45 am
cgouimet
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HermanH said
EQ doesn't charge fees to transfer RRSP and TFSA accounts.  

Ah ... Good to know ...

CGO
April 30, 2022
3:23 pm
Loonie
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A relevant question may be whether Wyth charges these fees. I think they do but not sure. If so, EQ might introduce them when it acquires Wyth.
Fees can be introduced or increased at ant time with fairly short notice.

April 30, 2022
11:30 pm
Norman1
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According to Wyth's Deposit Disclosure, there is a "Registered plan transfer-out fee" of $50/disbursement.

April 30, 2022
11:53 pm
RetirEd
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Oaken also has no TFSA transfer-out fees. Good thing, given they have no TFSA savings accounts or flexible terms.
RetirEd

RetirEd

May 1, 2022
12:26 am
Loonie
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Norman1 said
According to Wyth's Deposit Disclosure, there is a "Registered plan transfer-out fee" of $50/disbursement.  

All i can say is that I've never seen a FI remove these fees or decrease them.

May 1, 2022
12:57 am
cgouimet
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Loonie said

All i can say is that I've never seen a FI remove these fees or decrease them.  

No but there are FI's that will reimburse you for those trfr-out fees when you trfr-in.

CGO
May 1, 2022
6:45 pm
turquoise
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cgouimet said

No but there are FI's that will reimburse you for those trfr-out fees when you trfr-in.  

Yup -- Meridian reimbursed me $50 for TSFA funds transferred in from Luminus. The reimbursement was an "in-kind" deposit, and so wasn't viewed as an additional contribution.

May 1, 2022
6:49 pm
turquoise
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RetirEd said
Oaken also has no TFSA transfer-out fees. Good thing, given they have no TFSA savings accounts or flexible terms.
RetirEd  

Man, I'd love for Oaken to add TFSA and RRSP savings accounts. It would be so much more convenient to park matured GICs in one of those vs. prepare a transfer out 3-4 weeks ahead of time. It would also make it possible to combine contributions into a single GIC. Oh well...can't have everything I guess.

May 3, 2022
5:17 pm
Alexandre
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Loonie said
Registered 1.55

non-registered 2.00  

3 months non-registered and registered are now 1.6%

May 3, 2022
9:25 pm
Loonie
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Alexandre said

3 months non-registered and registered are now 1.6%  

This new rate is even less than the average of the previous two!

Oaken is offering 90 days non-registered @ 2.00%.
And there is 3 months, registered or not, at Hubert, for 2.1%.

May 4, 2022
4:35 am
Alexandre
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EQ currently offers 2.1% for 6 mo registered and non-registered. I understand what they are trying to do, but reluctant to lock my money for that long at that rate.

May 4, 2022
5:01 am
dougjp
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Alexandre said
EQ currently offers 2.1% for 6 mo registered and non-registered. I understand what they are trying to do, but reluctant to lock my money for that long at that rate.  

I agree. There is likely no downside risk (and nominal lost interest) in waiting up to a month. Today we will see what the Fed says when they (surely will) raise their rate. Then the next Bank of Canada rate change is expected on June 1.

My strategy for TFSA funds, that portion that is in cash, is to be able to shift decision making for where the funds go to late in the year. This avoids transfer fees/delays etc. as I simply withdraw if I choose to go elsewhere (in early December, redeposit in January), or get into annual maturing GICs then with (in this case) EQ. A 6 month GIC is an ideal "time shift" to accomplish this, at this time.

" We may never pass this way again " - Seals & Crofts

May 4, 2022
7:39 am
hwyc
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Alexandre said

3 months non-registered and registered are now 1.6%  

Then EQ HISA rate is not likely to go above 1.6% sf-frown Here's contemplating another TFSA transfer out of EQ.

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