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How safe is Peoples Trust?
March 13, 2014
5:12 pm
gibor
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March 13, 2014
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They give that best rates for TFSA HISA at 3% and also one of the best rates in CASH HISA 1.8%, also their GIC have best rates...
I have accounts with Peoples Trust for some time, but it was maybe 10-15% of our money... now when ING reduced rates for Children Saving account from 2% to 1.5%, I'm thinking to move about 90% of our savings to People Trust....
How secure this bank in your opinion? Can it go bankrupt?
I know that PT is secured by CDIC.
But, CIDC insured Canadian financial failures in recent history had
•23 financial institutions failed in the 1980s
•There were 18 failures in the 1990s
•The last financial institution failure in Canada occurred in 1996, when Security Home Mortgage Corp. collapsed

i wasn't living those times in Canada and was wondering why so many financial failures happened in 80's and 90's and none in last 18 years? Did CDIC changed rules or something else?

March 13, 2014
8:02 pm
frank888
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I have been thinking about opening an account with PT as well g'. You make some valid points, especially about ING.
Really PO'D with them dropping their rates, having been a client for more than 10 years. I have a couple of savings accounts as well as the bulk of my TFSA with ING but am actively looking for better returns. I did open a new TFSA in
January with CDF, they are now almost a full % above the 1.3 ING offers but PT does look better. On that note, I would
like to open an account with PT but have a question to ask about moving TFSA accounts. I have heard/read about "in kind" transfers where you don't lose that years contribution. Really don't want to move my cash out and have to wait until
next year to build it back up! Perhaps some of the more experienced members of this forum could offer some information
about the ins and outs of the TFSA.

Thanks, Frank.

March 13, 2014
11:00 pm
GS1
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Transfers usually incur costs (usually $50 or more) from the outbound folks as they don't want to lose the account. This isn't really to cover costs --it's more a penalty for leaving them, in my opinion.

You can easily do the math to see if the potentially lost interest less the fee is more or less than $0.00.

I'd put new money (if available room) in the new institution now and wait till December, say the 15th, to pull the existing TFSA money. Quietly pull it. don't tell them you are leaving. just zero balance it. If asked, tell them you are using the money for a holiday, house purchase, drug purchase, gambling debts, divorce, anything -- it's none of their business, even if they make you think it is.

Then January 2nd, plow it into your newly chosen institution.

GS

March 14, 2014
3:23 am
BSGJ
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ING do not charge for RRSP or TFSA transfers.

March 14, 2014
11:18 am
Doug
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GS said

Transfers usually incur costs (usually $50 or more) from the outbound folks as they don't want to lose the account. This isn't really to cover costs --it's more a penalty for leaving them, in my opinion.

You can easily do the math to see if the potentially lost interest less the fee is more or less than $0.00.

I'd put new money (if available room) in the new institution now and wait till December, say the 15th, to pull the existing TFSA money. Quietly pull it. don't tell them you are leaving. just zero balance it. If asked, tell them you are using the money for a holiday, house purchase, drug purchase, gambling debts, divorce, anything -- it's none of their business, even if they make you think it is.

Then January 2nd, plow it into your newly chosen institution.

GS

Greg's strategy is a great one, when you're using TFSA for GICs (maturing 1 year or less) or savings account and one I endorse. If your TFSA is invested in GICs maturing more than 1 year out, you can should try your hand at negotiating with the new institution directly, to see if they'll cover all or part of the "transfer fees" from the "delivering institution". They may just do that then, again, if it's April and x institution has a great rate, do the math and if the increase in interest earnings will deliver a return that exceeds the "transfer fee" you'd have to pay, then may still make sense (even if the "receiving institution" won't budge on not wanting to cover "transfer fees").

If transferring mutual funds (or stocks/bonds) from either a bank owned-mutual fund dealer, investment dealer or other self-directed brokerage, best to transfer to a bank-owned self-directed brokerage and they will all cover transfer fees anywhere from $125-150 per plan generally with a "minimum market value" of between $15,000-$25,000 (some may even calculate that "minimum market value" on the basis of all your plans you're transferring, which is better).

Similarly, if you decide you want out of self-directed investing and want to go back to mutual funds, to avoid a "transfer out fee", generally most bank-owned self-directed brokerages won't charge a "transfer out fee" to a bank-owned mutual fund dealer. You could, then, transfer from a bank-owned mutual fund dealer to the bank directly if you want to go back to GICs/savings accounts, since bank-owned mutual fund dealers don't charge "transfer out fees" for transfers between company subsidiaries. Nice trick, eh? ;)

As for ING DIRECT Canada, I believe they do charge a fee for "transfer outs", but they also won't reimburse any "transfer out" from the "delivering institution" fees (I tried to negotiate already!). ;)

Cheers,
Doug

March 14, 2014
6:15 pm
frank888
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Thanks GS for your advice. I was leaning that way if there wasn't a better option. Guess I'll sit it out with ING 'til December
and shift it out and "plow it into" a better account.

Frank

March 15, 2014
1:16 pm
gibor
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frank888 said

Thanks GS for your advice. I was leaning that way if there wasn't a better option. Guess I'll sit it out with ING 'til December
and shift it out and "plow it into" a better account.

Frank

Actually last year I transferred my TFSA from ING to Peoples Trust and didn't pay any fees

March 15, 2014
6:02 pm
Rick
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I am in the process of transferring out my GICs with ING as they come due. I have moved two RSP GICs and the cash in my RSP savings account and they didn't charge me anything on any of the transfers. Aren't they supposed to fee free banking? As for the TFSA, I found that it takes almost a month from the time I first requested a transfer until the funds actually show up in your account. It's all done thru snail mail. That was from ING to CDF, and CDF's minions in the dungeon processing them are a bit overworked and behind....busy time of year. They did back-date the new products to the day the money actually arrived and the rate that day. Still, if you lose a months of interest, you are still better off transferring it to PT at 3% than letting it sit there until the end of the year at 1.3% in ING. PT WILL charge you for transferring the funds out, but all institutions I have dealt with are more than willing to reimburse that fee to get hold of your money. Check with them BEFORE you initiate a transfer and get the name of the person you talk to. If something better comes along by the end of the year, THEN you can use the December maneuver to transfer out ding-free. THAT (officially) is my 2 cents worth. sf-laugh PS...ING DOES NOT negotiate rates, period!

March 16, 2014
2:30 pm
gibor
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Rick said

I am in the process of transferring out my GICs with ING as they come due. I have moved two RSP GICs and the cash in my RSP savings account and they didn't charge me anything on any of the transfers. Aren't they supposed to fee free banking? As for the TFSA, I found that it takes almost a month from the time I first requested a transfer until the funds actually show up in your account. It's all done thru snail mail. That was from ING to CDF, and CDF's minions in the dungeon processing them are a bit overworked and behind....busy time of year. They did back-date the new products to the day the money actually arrived and the rate that day. Still, if you lose a months of interest, you are still better off transferring it to PT at 3% than letting it sit there until the end of the year at 1.3% in ING. PT WILL charge you for transferring the funds out, but all institutions I have dealt with are more than willing to reimburse that fee to get hold of your money. Check with them BEFORE you initiate a transfer and get the name of the person you talk to. If something better comes along by the end of the year, THEN you can use the December maneuver to transfer out ding-free. THAT (officially) is my 2 cents worth. sf-laugh PS...ING DOES NOT negotiate rates, period!

From PT FAQ
11. Do you charge TFSA transfer fees?
Peoples Trust Company does not charge any fee to transfer TFSA’s to or from another Financial Institution.

March 16, 2014
7:08 pm
Rick
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gibor said

From PT FAQ
11. Do you charge TFSA transfer fees?
Peoples Trust Company does not charge any fee to transfer TFSA’s to or from another Financial Institution.

Even better! Thanx for catching that!

March 31, 2014
12:39 pm
gibor
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PT increased their GIC rates, rate for 1 year is 2.2%! And my major bank CIBC reduced rates on eAdvantage Saving account from 1.5% to 1.05% :(
Transfering almost all my available cash to PT

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