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Transferring out registered GICs from Oaken.
April 18, 2022
6:05 pm
Canuck
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Oaken frustratingly does not have registered savings accounts. I want to transfer out a registered (RSP) GIC from Oaken to EQ Bank. This RSP GIC is coming up for maturity at the end of May. I was advised by an Oaken associate to only initiate the transfer 30 days prior to maturity otherwise Oaken's back-end team will automatically reject the request. In other words, I was advised to initiate the transfer (i.e. submit the transfer form to EQ Bank) at the end of April.

I have a few questions:

1) Is this true? Was I given reliable information? Should I wait until the end of April to submit the transfer form to EQ Bank, or should I submit the transfer form now?

2) What if either Oaken or EQ Bank sit on their hands and it takes longer than 30 days? I asked the Oaken associate this exact question and his response was that there is a two week grace period after the GIC renews, so this would effectively give the transfer six weeks. I'm not exactly comfortable with that response .. assuming it is even accurate information .. but I guess it is what it is? Should I be worried?

All of this because Oaken doesn't have registered savings accounts ... otherwise I would just give the instruction to Oaken to deposit the funds into my RSP savings account at maturity ... and I would do the transfer from there. It's all very annoying.

What do you all think? Any advice from people who've transferred out registered GICs from Oaken?

Thanks in advance.

April 18, 2022
6:09 pm
Canuck
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In case it isn't obvious from my previous post, my intention is to transfer out the funds in the RSP GIC only after it has matured. Thanks.

April 18, 2022
7:29 pm
Dean
Valhalla Mountains, British Columbia
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.
From what I've read in other threads on this site, forum member Loonie has been transferring his registered money out of Oaken for a while now. Hopefully he'll chime in here soon, and share his knowledge & advice.

As for myself, I am one of 'Many' Oaken customers who Refuse to invest any registered money with them, for the reason(s) mentioned above in Post #1.

Caveat Emptor,

    Dean

sf-cool " Live Long, Healthy ... And Prosper! " sf-cool

April 19, 2022
5:15 am
rodeworthy
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I have moved several matured RIF GICs from accounts at Oaken's Home Trust and Home Bank. The proceeds of the matured GICs were moved to pre-existing RIF accounts at a Manitoba CU. I note the last of these matured GICs matured on June 18/20 and was deposited at the CU on the same day. There was never a delay of over 3 days (including weekends) to have the money deposited in our CU accounts.

The transfers were initiated from the receiving FI by way of Direct Transfer Request. There were no delays, no fees, no holds, no problems. All dealings with Oaken have been excellent. There was no need for initiating the moves more than 30 days before maturity.

The reason to move the RIF accounts from Oaken was due to the complexity of dealing with minimum withdrawals from the GIC interest earnings of multiple GICs. This would not have been necessary if Oaken provided a savings account for each of the RIF accounts. I learned how to deal with it but the process was tedious.

In the end, I decided to consolidate our RIF funds with a goal to maximize withdrawals from them within the limits of selected Marginal Tax Rate and avoiding recovery from OAS (clawback). This is easier dealing with only one FI where we have both RIF savings accounts and GICs.

You didn't say whether you already have a RSP saving account at EQ Bank. If so, the delay you will encounter is the hold period that EQ applies to transfers. You will earn interest on that money from the day it arrives at EQ. If you do not have a RSP account at EQ, there could be further delays setting that up.

I hope that your experience moving the RSP funds will be as good as ours.

April 19, 2022
6:31 am
hwyc
GTA
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The process is regulated under "T2033 Direct Transfer Under Subsection 146.3(14.1), 147.5(21) or 146(21), or Paragraph 146(16)(a) or 146.3(2)(e)"

As Rodeworthy already stated, initiate it from the receiving FI (EQ?).

The Oaken associate told you their requirement, which can also be found on their registered account T&C here.

... Where you do not wish to have the proceeds of the Investment reinvested in accordance with section 1 of these Terms and Conditions, you must provide us or your Representative, a completed transfer form at least twenty (20) days prior to the applicable Investment Maturity Date

Hope this helps.

April 19, 2022
9:45 am
Loonie
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I think one month is quite reasonable. i would not do it any sooner. Doing it sooner will not expedite it.

Oaken is generally quite speedy about transfers, so I would not worry about that. They usually arrive at new FI same day as they matured. Oaken often mails the cheque in advance of maturity and sometimes it even arrives early. Once I had one that was a week late; I put it down to covid. I once had one that arrived early! The fastest one took less than a week from when I initiated it.

I wouldn't worry, but it's a good idea to check with the receiving FI a week or so after you mail in your request, just to make sure they received it. On last night's news I heard that 10% of people currently have covid, so things can get delayed due to people being off work.

April 19, 2022
4:19 pm
Canuck
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Thanks everyone for the information and advice! Glad there's no good reason to worry. And I agree; Oaken's customer service has always been excellent. Probably the best of any FI that I have dealt with. Now, if only they had registered savings accounts ..

Yes, I have an RSP savings account at EQ Bank already set up, so it should all be ready to go once I submit the transfer form 30 days prior.

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