ATON Transfer of RRSP & TFSA from IBKR to a Canadian Bank | RRSPs and RRIFs | Discussion forum

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ATON Transfer of RRSP & TFSA from IBKR to a Canadian Bank
August 1, 2022
2:11 pm
dickyran333
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Hi there,

I have idle cash sitting in my RRSP and TFSA accounts with my broker, IBKR. I wanted to transfer that to Tangerine's RRSP & TFSA savings accounts as I'm eligible for their promotional rate. However, IBKR customer service just told me that they do only ATON transfer and that they don't handle any paper transfers.

ATON stands for Account Transfer Online Notification. It's basically an online transfer of registered accounts between financial institutions.

In hindsight, I should have found this out before opening my IBKR account, but somehow I missed that as I never thought a broker won't handle paper transfers and this could be an issue.

I don't think Tangerine Bank does ATON transfer. It seems their CSRs have heard this word for the first time. They only tell me that I need to fill up the form online and then they will process it. But that's ultimately a paper transfer.

I guess larger Canadian banks like RBC, TD, and Scotia for example, may process ATON transfer but their interest rates are too low. Although it's better to invest my idle cash at a lower rate than continuing to keep it idle, I just don't feel comfortable blocking my funds at their lower rates.

Are their any Canadian banks that process ATON RRSP & TFSA transfers as well as offer a decent savings and / or GIC rates? Any other advice?

Thanks,
Dicky

August 1, 2022
3:44 pm
Bill
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I wouldn't assume Tangerine won't be able to somehow orchestrate this transfer, and I wouldn't expect csr's to have a clue about how, in this case. I'd just fill out from Tangerine end and see what happens.

If it doesn't work maybe go to Tangerine's parent, BNS, and see if there's a route through them that can work, i.e. maybe first has to go to tfsa and rrsp accounts you open at BNS and then to Tangerine.

August 1, 2022
3:45 pm
Norman1
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ATON is run by the Canadian Depository for Securities. It can be used to transfer positions and funds. Looks like a system of interest to brokers who offer accounts holding stocks, marketable bonds, and other tradeable instruments held by CDS.

I think it is unlikely that any financial institution that only offers its own non-tradeable deposits, like Oaken or Hubert Financial, would be an ATON participant just to transfer cash out to or in from brokers.

August 2, 2022
4:40 am
savemoresaveoften
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March 30, 2017
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Yes IBKR works with CIBC. However they are getting more stringent and now only allow 1 free transfer per month. Extra transfer is like $2-3 per transaction.
Why don’t u just transfer out to a big5 first, then move it over to tangerine ? You should never have something like tangerine to be ur one and only one bank in my mind. It sb big5 plus whatever others you want.

August 4, 2022
2:49 am
RetirEd
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Unless things have changed, Tangerine is tragically slow to execute TFSA transfers. My last attempt, at the start of a December, took three weeks to generate a cheque in Toronto, which was then MAILED to the receiving institution (Peoples Trust). It arrived after January 1st, but PT had been advised of the move at every stage (after all, they had to initiate the transaction) and back-dated the reception of the funds.

Others have also noted Tangerine's sloth in TFSA transfers here.
RetirEd

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