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Closing orphan RSP at TD
May 13, 2024
5:23 pm
Bill
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Below is a link to current TD DI fee info. They don't have annual account fees, they have quarterly $25 fee, waived if household members' assets with TD DI exceed $15K, plus there are some other reasons for waiving, click on Maintenance Fee & Household Program.

You can also click on Our Rates & Fees to see the brochure re. all their fees.

https://www.td.com/ca/en/investing/direct-investing/pricing?cm_sp=:GOOGLE:Core+-+Branded+-+English+(24_S_WL_WDI_AO_ACQ_EN_BRA):DIF:Brand+-+Core+-+Direct+Investing&gad_source=1&gclid=EAIaIQobChMIvvrMvO2LhgMVY1dHAR2g6gayEAAYASABEgL2qvD_BwE&gclsrc=aw.ds

May 13, 2024
6:12 pm
Loonie
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So, $100/yr fee if less than 15K. I know it used to be min 25K, just wasn't sure of current min. This will keep TDDI more competitive with other FIs at least as far as the minimum goes

I guess this is a way of acknowledging that some people have had significant losses on relatively small savings, and TD wants them to stay in the game - and deposit more money.

This change may be good news for some with small and ever-dwindling RIFs to which nothing can be added. They won't hit fee territory as soon.

May 13, 2024
7:14 pm
AltaRed
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It is an indication the larger (bank) brokerages do not want small accounts, albeit some make exceptions for TFSAs and RRSPs/RRIFs. I do not know offhand who does what in this regard without pulling up every 'Fees and Commission' schedule for the big 5-6 banks.

Some independents have smaller account fees and/or account minimums with a few (like maybe WealthSimple) perhaps even zero. In any event for the purpose of this thread, the OP has this tiny RRSP at TD bank, not TDDI.

Added: At Scotia iTrade where I have my RRIF and TFSA, no minimum, no fee for TFSAs, but a $100/yr fee for RRIF if "aggregate" account balances of all accounts is under $25k. That is okay though because I have one non-reg account there too.

May 13, 2024
7:20 pm
Norman1
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The $25/quarter maintenance fee at TD Direct Investing is based on all the accounts linked together in their Household Program. The $15,000 minimum needs to be met by a RIF account only when that is the only TD Direct Investing account for someone or for the household.

One TD agent explained that a $100/month pre-authorized deposit set up to one of the accounts would be enough to avoid the maintenance fee:

To qualify for waived maintenance fees with the Household Program, any one of the following must be met:

  • The combined assets of all your TD Direct Investing in your Canadian household accounts exceed $15,000.
  • You register one or more of the accounts in your household in a Systematic Investment Plan (SIP), a pre-authorized deposit, or a pre-authorized contribution of at least $100 a month.
  • You complete three or more trades which incur a commission in the preceding quarter within household accounts.
  • You hold a Registered Disability Savings Plan (RDSP) account within your household.
  • You are in the introductory six months of the first account opened within your household.
May 13, 2024
10:07 pm
Loonie
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Interesting workarounds, but I think most people should consider they need to keep 15K there, rather than having to ensure that another qualification is constantly met. That would at least be my view.

May 14, 2024
7:26 am
Bill
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If your entire household has (including RRIF accounts) less than $15K investments at one institution I'd say a big bank discount broker is not where you want to be, and they'd also be quite happy for you to take your business to another institution that courts small accounts holders by having no/minimal fees, etc.

May 14, 2024
11:00 am
AltaRed
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Loonie said
Interesting workarounds, but I think most people should consider they need to keep 15K there, rather than having to ensure that another qualification is constantly met. That would at least be my view.  

Aggregating values in multiple accounts to qualify has been common practice in one form or the other for as long as we have had discount brokerage accounts, at least at RBCDI, Scotia iTrade and BMO Investorline where we have accounts, and as others have said TDDI. I expect CIBC IE would be similar to be competitive.

In some cases, it might be limited by a specific individual common to the accounts, or household accounts at the same postal address (as TDDI does).

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