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Which RRSP HISA is easy to open and withdraw from
February 5, 2020
8:44 am
mr2711
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Hello All,

I have a unique situation where I need to dump 50k in RRSP HISA with possibility of withdrawals in few months. I had high earnings in 2019 and taking sometime off work hence expecting low earnings in 2020. I understand I will lose contribution room etc. and I am OK with that.

I did some research and prepared a list of institutions which are offering 2%+ RRSP HISA. Can someone please help me in identifying which of these FIs are:
a) Easy to open account with
b) Easy to deposit money into and withdraw money from
c) Work with Mint - nice to have.

Motus 2.1
Alterna 2.25
Hubert 2.25
Achieva 2.3
Implicity 2.3
Accelerate 2.3
Maxa 2.4
Outlook 2.4

February 5, 2020
10:07 am
GICinvestor
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Hubert is easy. And you can do it all on your own if RRSP only.

Outlook is overall useless in my opinion and will dump them in a couple of months.

Accelerate could be ok. I have an account with them but when comparing RRSP RRIF withdrawals with Accelerate, Oaken and Hubert....Hubert won!

Keep in mind if you want to income split, it is wise to move from RRSP to RRIF and then do the withdrawal from RRIF and just leave $100 in RRIF. I have done that with Hubert. While I said you can do the RRSP withdrawals on your own......you have to either phone or chat with Hubert to move funds from RRSP to RRIF. And once in RRIF it is all managed by you. Also keep in mind to do multiple withdrawals of $5000 or less....then you will only have 10% tax withhold. But you may have to pay more income tax at tax time. Also keep screen prints for tax time that show withdrawals and withhold tax.

February 5, 2020
4:34 pm
Alexandre
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The truly easiest one is Tangerine. You can do everything online: open RRSP Savings account, transfer money there and, more importantly, withdraw it. Online.

I just had the pleasure (not really) today to withdraw a tiny amount from one of my RRSP accounts in one of Big Banks, which required to make phone call, wait a bit on hold, have nice (can't deny that) conversation including about 5 minutes of promos including low low interest on borrowing against my credit card I have with them. Oh, yes, my money I withdraw from RRSP will appear in my checking account tomorrow or worst case day after tomorrow. Not immediately.

Tangerine: login to account, request transfer from RRSP Savings to regular Checking, confirm transaction, get proper withdrawal tax taken, remaining funds in Checking immediately.

Yes, Tangerine RRSP is just 1.05%, so for long term holdings it is far from ideal. But if you value convenience, and park money for short period, consider it.

But, wait, there is more! They run 2.75% promo which might be good for you if you haven't been their client before.

Right now, when you become a new Tangerine Client by April 30, 2020 and open your first Savings Account, you could earn 2.75%* interest for 5 months** up to a maximum of $1,000,000†. This includes Tangerine Savings, TFSA, and RSP Savings Accounts. And now, this special rate also applies for RIF and US$ Savings Accounts.

February 5, 2020
6:53 pm
Loonie
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I don't know what Mint is, so can't speak to that, but I would agree that Hubert is easy to deal with and it will be done immediately.

You should confirm whether any of these FIs have a withdrawal fee. I don't know, but I know that Hubert doesn't.

Pension splitting will only work if you are 65+. It sounds like you probably aren't.

It's a good idea though to use your RSP for income averaging. Most people don't realize this or don't do it.

February 5, 2020
6:57 pm
GICinvestor
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February 5, 2020
7:31 pm
Bill
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Though perhaps not in this case note that some types of pension income do not require age 65+ for splitting. Here are the conditions for splitting:
https://www.canada.ca/en/revenue-agency/services/tax/individuals/topics/pension-income-splitting/eligible-pension-income.html#qualify

February 5, 2020
11:06 pm
Loonie
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GICinvestor said
Mint? https://www.mint.com/  

Thanks. I can't imagine wanting to use this, personally. Too many fingers in my pie!

February 6, 2020
7:45 am
GICinvestor
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Loonie said

Thanks. I can't imagine wanting to use this, personally. Too many fingers in my pie!  

Exactly. Not too many fingers in the pie....but toooooooo much personal information that could be shared as a result of being online. I would not trust any opportunity to put my investments, credit cards and etc on any online offer, even including what some of the 5 big banks offer.

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