any decent RSP transfer suggestion (bonus if with fee reimbursement) ??? | RRSPs and RRIFs | Discussion forum

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any decent RSP transfer suggestion (bonus if with fee reimbursement) ???
March 3, 2015
7:55 pm
yuj
Ontario
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One of my RSP's (50G) is now with Tangerine HISA 1.05%, which sucks.
Possibly not ready to consider investing it into a GIC yet.
So I'm looking for some other decent institution to transfer to,
hopefully will have the Tang $45 trsf fee reimbursed,
have >= 1.3% non promotional savings rate,
currently not have there own rsp trsf out fee for now (as I may want to trsf / withdraw within 2 years),
I am in Ontario.
I would appreciate any of the forum members input / experience regarding such

March 3, 2015
10:04 pm
Loonie
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I think you will find that financial institutions that do NOT, themselves, have a transfer-out fee will not reimburse your fee from another institution.

That said, Tangerine's fee is a bit less than some others, and you might want to just get it moved now before the fee gets higher. Peoples Trust and Oaken do not charge transfer-out fees, and neither does Achieva (MB credit union), but who's to say whether they will or won't charge in a few years? These are all available to people living in Ontario.

I think it's best to make this decision on other criteria such as interest rates, whether you like the institution, stability of rates, customer service, etc.

March 24, 2015
5:29 pm
Sammy8
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March 24, 2015
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The way Banks and other Financial Institutions manage transfer-out fees is very unfair and wrong. You may invest with an institution that does not have fees for transferring out a registered product and when your investment matures, they may have introduced sometimes heavy fees or jack up the fees there was at the time of investment. Most often, people will take fees into consideration when buying a GIC in a RRSP.

Some years ago I read that it was illegal for Banks and Financial Institutions to charge a fee after the RRSP was bought because you mutually sign a contract and if the fee is introduced after the investment start date, you did not have to pay it. When buying this registered GIC, you are usually given an agreement with terms and conditions and the fee is normally listed there. So changing it means the contract is not respected.

I don't remember where I read that but I know it was from some sort of authority giving tips and advice when buying RRSP. Has anyone ever seen or heard something similar?

March 24, 2015
5:51 pm
kanaka
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Sammy8 said

The way Banks and other Financial Institutions manage transfer-out fees is very unfair and wrong. You may invest with an institution that does not have fees for transferring out a registered product and when your investment matures, they may have introduced sometimes heavy fees or jack up the fees there was at the time of investment. Most often, people will take fees into consideration when buying a GIC in a RRSP.

Some years ago I read that it was illegal for Banks and Financial Institutions to charge a fee after the RRSP was bought because you mutually sign a contract and if the fee is introduced after the investment start date, you did not have to pay it. When buying this registered GIC, you are usually given an agreement with terms and conditions and the fee is normally listed there. So changing it means the contract is not respected.

I don't remember where I read that but I know it was from some sort of authority giving tips and advice when buying RRSP. Has anyone ever seen or heard something similar?

Here is a good article ... http://www.moneysense.ca/inves.....ge-19-days

I recently did 2 RRSP transfers out of Coast Capital to 2 other financial institutions. 55 bucks each and they "snail mailed" the cheques and took over 2 weeks. Not only a rip off, but intentional....like a penalty for being a bad customer.

March 24, 2015
7:23 pm
Sammy8
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Thank you for the information but I am aware of transfer-out fees. I have been doing RRSP transfers for a number of years and I find that lately Banks are going crazy with introducing and increasing those fees and I was just reflecting on what I had read earlier.

I do not question the fact that they charge the fees. I question the legality of telling you an amount when you buy and then charging differently years later. Since I read something to that effect, I was wondering if someone had ever heard or seen something similar.

March 24, 2015
8:46 pm
Loonie
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Sammy8 said

The way Banks and other Financial Institutions manage transfer-out fees is very unfair and wrong. You may invest with an institution that does not have fees for transferring out a registered product and when your investment matures, they may have introduced sometimes heavy fees or jack up the fees there was at the time of investment. Most often, people will take fees into consideration when buying a GIC in a RRSP.

Some years ago I read that it was illegal for Banks and Financial Institutions to charge a fee after the RRSP was bought because you mutually sign a contract and if the fee is introduced after the investment start date, you did not have to pay it. When buying this registered GIC, you are usually given an agreement with terms and conditions and the fee is normally listed there. So changing it means the contract is not respected.

I don't remember where I read that but I know it was from some sort of authority giving tips and advice when buying RRSP. Has anyone ever seen or heard something similar?

I haven't heard of this, although it's a good idea. They probably have their documents written in such a way as to permit them to change the fees midstream.

In addition, if you are rolling over (renewing) a GIC, you don't normally get a new document. The new rate and term appears on your next statement, but there is not a whole new set of paper work. IF the original paper work did have a clause limiting fee increases, it is inconceivable that it would apply indefinitely, including rollovers.

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