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RRSP Transfer FEES
May 29, 2015
1:32 pm
JBil
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I'm looking for the best high interest saving account for a new RRSP. But i want to know: Is there a place where there are no FES to transfer an amount out of the institution ? I'd like to move new money temporarily to this kind of account.

Thank you

May 29, 2015
3:18 pm
Yatti420
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PTC doesn't charge transfer fees for registered products.. It's your best choice for cash anyways..

Edit: In an TFSA atleast.

May 29, 2015
4:49 pm
JustMe
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Let fees do not stop you. Every decent fin. ist. will cover that fee. But do not suggest moving $1000 only.

May 29, 2015
5:11 pm
AltaRed
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What the OP wants does not make much sense to me. Why would the OP open a new RRSP just to put money into an HISA in that account?, and then transfer it later out of that institution?

And does the OP mean a withdrawal from an RRSP or a transfer to another RRSP. If the former, tax will be due and there will be a fee for such withdrawals....anywhere I believe. If the latter, then start with the latter institution to begin with and avoid transfer fees. Most insitutions that have RRSPs also have some kind of eSavings or HISA accounts.

May 29, 2015
5:32 pm
kanaka
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Oaken and Hubert have no transfer fess as well.

May 29, 2015
7:20 pm
Rick
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Yatti420 said

PTC doesn't charge transfer fees for registered products.. It's your best choice for cash anyways..

Edit: In an TFSA atleast.

I don't think PTC offers a RSP savings account...just GIC's

May 29, 2015
7:22 pm
kanaka
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Yes and Oaken does not have RRSP savings either...just GICs.

May 29, 2015
9:41 pm
Loonie
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Many valid comments above.

I have had RRSPs since the 1970s. At that time, the institutions that charged transfer-out fees charged $25, and not all of them charged. Now, almost all of them charge, and the range is about $50-$100.

So, even if they don't charge today, they might charge tomorrow. They have to give you a certain amount of notice of changes of fees. With your money in a savings account RRSP, it's technically possible that you would be able to transfer it to another institution if the first one introduced fees. However, once you get into a GIC, you're stuck; they can up the fees mid-stream, and there is nothing you can do about it. (This ought to be illegal IMO.) However, there is also no real time limit on how long they can take to initiate the transfer, even if the money is NOT in a GIC. Thus, they can dawdle so that you end up having to pay any increased or new fees anyway. Some are notorious for lengthy dawdling.

Conclusion: Take the best rate you can find, one that has been consistently one of the better rates; and hope for the best. The system is not set up for you to ever win on the subject of transfer fees.

The last time I looked, Achieva CU did not charge.

May 29, 2015
9:51 pm
Loonie
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AltaRed said

What the OP wants does not make much sense to me. Why would the OP open a new RRSP just to put money into an HISA in that account?, and then transfer it later out of that institution?

I can think of at least 4 reasons:. The person is planning to use this deposit to buy a house, the timing of which is hard to predict. or The person is hoping rates will go up so wants to wait until then to put it in a GIC (rightly or wrongly). or The person doesn't have their financial plan worked out yet and just wants to deposit the money in a tax-deferred plan. or The person anticipates lower income next year and just wants to use this RRSP to average out their income.

May 30, 2015
12:06 pm
xxxx
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Registered Accounts have specific rules and requirements and are not as flexible as Non-Registered Accounts. I also agree with AltaRed that it would not be a usual procedure to go through the effort to open a new RSP acct with an institution just to hold some cash and then in a relatively short time, transfer it out to another institution. However, if that is something that the OP strongly wants to do, that is fine, however, he should be prepared to pay the fees which financial institutions assess on registered accounts for the effort to prepare the required paperwork (required by CRA) particularly when this is going to be a relatively short-term effort.

If depositors jump around all the time to other institutions, which involves increased level of effort for institutions (because of the CRA requirements re forms etc.) then it is fair for them to assess fees. Loonie's conclusion to take the best rate you can at the time and hope for the best is correct.

In fact, because of the poor economic performance for the first quarter in Canada, a drop in the BoC rate is a possibility - and if that occurs, then waiting for a "better" rate may actually backfire, not occur and the OP will miss out on the "better" present rate.

May 31, 2015
12:16 pm
JBil
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I'll ask to Hubert. Thank you very much for all your answers.

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