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RRSP transfer time
February 25, 2016
7:06 am
mw
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Normally how long transfer RRSP savings from one institution to another institution.

Would money in credit Union to Credit Union, process time better?

Would it take one month more or less time to process, that is to say I need to consider one month interest loss in transit, is this correct?

Any information would be appreciated.

February 25, 2016
12:43 pm
kanaka
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mw said

Normally how long transfer RRSP savings from one institution to another institution.

Would money in credit Union to Credit Union, process time better?

Would it take one month more or less time to process, that is to say I need to consider one month interest loss in transit, is this correct?

Any information would be appreciated.

3-4 weeks,
I usually courier them.

Credit union to credit union......no difference. It is all up to where you are moving from......how long does it sit on someone's desk.

Yes possible loss of interest depends if you have in an RRSP saving account up and until the transfer happens. It may take a month but you may only loose a week or so of interest while the cheque is in transit.

Not only some loss of interest and possibly a transfer out fee that the transfer to bank may pick up for you.

Why are you transferring.....1% or more interest?

February 25, 2016
12:53 pm
mw
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Yes I have RRSP 100K, if in my existing Credit Union 2.1% , is it worthwise to transfer to Zag 2.5% for 2 years promotion term? thanks advice.

February 25, 2016
1:34 pm
Winnie
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mw said

Yes I have RRSP 100K, if in my existing Credit Union 2.1% , is it worthwise to transfer to Zag 2.5% for 2 years promotion term? thanks advice.

Recently I completed 2 RRSP transfers.
First, from RBC to Tangerine (3 days loss of interest, both banks located in Toronto).
Second, from Peoples Trust (Vancouver) to Tangerine (Toronto) and loss of interest was 5 days.
I also tried to do RRSP direct transfer to Zag RRSP and they did not accepted my transfer form. I tried to resolve that issue through Zag's Manager unsuccessfully and decided to never again deal with Zag's RRSP or TFSA, because they did too many mistakes and do not want to correct them. Every bank can make a mistake sometimes, that is fine and that happened to me a few times before, but Zag refused to correct their mistakes. My advice - do not try to transfer RRSP to Zag.

February 25, 2016
1:36 pm
kanaka
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Since 2.5 is also the best 5 year rate...this could be a good idea.....with the hope that rates will be better in 2 years.

Questions for ZAG.....is the 2 year GIC compounded......how long will they hold the rate for you?

So. 100,000 at 2.1 compounded will get you 104,244.10
and 100,000 at 2.5 compounded will get you 105,062.50...818.40 MORE :) :)

February 25, 2016
1:47 pm
kanaka
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Winnie said

mw said

Yes I have RRSP 100K, if in my existing Credit Union 2.1% , is it worthwise to transfer to Zag 2.5% for 2 years promotion term? thanks advice.

Recently I completed 2 RRSP transfers.
First, from RBC to Tangerine (3 days loss of interest, both banks located in Toronto).
Second, from Peoples Trust (Vancouver) to Tangerine (Toronto) and loss of interest was 5 days.
I also tried to do RRSP direct transfer to Zag RRSP and they did not accepted my transfer form. I tried to resolve that issue through Zag's Manager unsuccessfully and decided to never again deal with Zag's RRSP or TFSA, because they did too many mistakes and do not want to correct them. Every bank can make a mistake sometimes, that is fine and that happened to me a few times before, but Zag refused to correct their mistakes. My advice - do not try to transfer RRSP to Zag.

While I have no dealings with Zag nor do I intend to. But I totally agree with Winnie. A financial institution that makes mistakes is a non contender!!! One mistake maybe if it is not a big but after that I am gone!! I had a huge amount of issues with mistakes with Outlook Financial as I have mentioned before. Always resolved because I went to the VP and sometimes extra interest but far far too many times. I am phasing them out. And they are not on the top of the heap for rates anyways. And there email customer service just plain ordinarily sucks.

February 25, 2016
1:47 pm
kanaka
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Winnie said

mw said

Yes I have RRSP 100K, if in my existing Credit Union 2.1% , is it worthwise to transfer to Zag 2.5% for 2 years promotion term? thanks advice.

Recently I completed 2 RRSP transfers.
First, from RBC to Tangerine (3 days loss of interest, both banks located in Toronto).
Second, from Peoples Trust (Vancouver) to Tangerine (Toronto) and loss of interest was 5 days.
I also tried to do RRSP direct transfer to Zag RRSP and they did not accepted my transfer form. I tried to resolve that issue through Zag's Manager unsuccessfully and decided to never again deal with Zag's RRSP or TFSA, because they did too many mistakes and do not want to correct them. Every bank can make a mistake sometimes, that is fine and that happened to me a few times before, but Zag refused to correct their mistakes. My advice - do not try to transfer RRSP to Zag.

While I have no dealings with Zag nor do I intend to. But I totally agree with Winnie. A financial institution that makes mistakes is a non contender!!! One mistake maybe if it is not a big but after that I am gone!! I had a huge amount of issues with mistakes with Outlook Financial as I have mentioned before. Always resolved because I went to the VP and sometimes extra interest but far far too many times. I am phasing them out. And they are not on the top of the heap for rates anyways. And there email customer service just plain ordinarily sucks.

February 25, 2016
1:50 pm
kanaka
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Hubert also has a 1 year deal.

picture perfect - rrsp / rrif terms
1 year rrsp quarterly term 2.05% average

MW is the 2.1% rate you are referring to a 2 year rate or??

Also ...... based on your age.....if nearing 71. Do they have RRIF GIC and Savings Accounts and do they have a minimum RRIF balance requirement.

February 26, 2016
3:23 pm
Saver-Mom
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Since Duca is protecting their 3% rate for only 30 days, any suggestions on how to get discount brokerage firms to process rrsp transfers quickly? Duca gets them from me immediately and sends electronically too, I believe. How do we get receiving institution to cough it up?

February 27, 2016
10:30 pm
Loonie
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Saver-Mom said

Since Duca is protecting their 3% rate for only 30 days, any suggestions on how to get discount brokerage firms to process rrsp transfers quickly? Duca gets them from me immediately and sends electronically too, I believe. How do we get receiving institution to cough it up?

There is just about nothing you can do unless you have a personal relationship with someone who wields power in the institution from which you are withdrawing the money. It might help if you have other accounts with them that you are now threatening to withdraw or move if they don't hurry up, but, still, it's very iffy.

The fundamental problem is that there is no regulation that dictates the time within which they must respond to your request. I find this unconscionable. They are well aware of the situation, and many take advantage of it.

Ironic, isn't it?, that they are continually moaning about the effort it takes them to do this, and constantly increasing the fees to do so, yet the service remains arbitrary and unpredictable.

I have heard that brokerages are slower than regular banks, in general, but this may not be consistent. I have also been told by a bank officer that TD brokerage is one of the worst, and can take several months. There have been stories reported in online complaints and newspapers of extreme cases where people waited the better part of a year.

I'm not sure who would have to be called upon to regulate this, but it definitely needs to be done. Is it CRA, which sets the rules for registered plans, who would be in a position to do this? It requires a lot of letters, as there has been no response up til now.

February 27, 2016
10:50 pm
kanaka
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There is just about nothing you can do unless you have a personal relationship with someone who wields power in the institution from which you are withdrawing the money. It might help if you have other accounts with them that you are now threatening to withdraw or move if they don't hurry up, but, still, it's very iffy.

Not sure about that. Most of my GICs were with Coast Capital. I used a bit of a loop to save $100 in transfer fees. The next year did the same and I am positive they sat on it as they are sore losers. Yet over the years both my wife and I put 1000s through them. No doubt in my mind they have memo fields on their systems to record history. So knowing some one...I had....my adviser sped them up...even though he lost on the deal too.

Once you start a transfer some reasonsble institutions will stretch the date for you.

February 27, 2016
10:55 pm
kanaka
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Also when I tansferred to Oaken they punched up Coast Capital and notified me of doing so. I asked Hubert if they did the same and they said yes. So ask your transfer-to FI if they do the same.

February 28, 2016
12:46 am
Loonie
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Yes, you might have more luck negotiating on the receiving end, begging for more time. Keep on the case; phone regularly to see if the money has arrived yet. Don't leave it til the last week or so.

One of the problems though is that this is the busiest time of the year for people who work with registered accounts in banks. It's also when the best rates are most likely to be offered.

Keep us posted on how you make out!

February 28, 2016
8:33 am
Norman1
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Banks and brokers have made some commitments for transfer times.

Chartered banks have agreed those listed in Voluntary Commitments and Codes of Conduct. In the Guidelines for Transfers of Registered Plans, the banks have agreed to the following:

Chartered banks will endeavour to process transfers of deposit type registered plans in a maximum of seven (7) business days normally and twelve (12) business days during peak time (February 15 - March 31) from the date the bank receives the complete and accurate documentation (whether at the branch or the processing centre) or the maturity date of the instrument, whichever is later, to the date that the cheque is mailed to the receiving institution.

Regulation 2300 of the Investment Dealers Association governs transfers from brokers. Brokers have around 10 settlement days to complete outgoing transfers after they receive the request.

Looks like some brokers did not take Regulation 2300 seriously in the past. In 2006, the Enforcement division of the Investment Dealers Association issued Bulletin MR0422 - Account Transfers (September 20, 2006) with this:

Concerns about adherence with IDA Regulation 2300 have come to the attention of the Enforcement Department of the Association.

Members are directed to review Regulation 2300 and to ensure strict adherence with the time limits for ensuring prompt and efficient account transfers. Further, given the potential for client harm resulting from delays in the transfer of accounts, the Association expects Members will review and monitor processes in place to effect prompt account transfers.

[Asset Listing: Two Clearing Days]
[Settlement: Ten Clearing Days]
...

Members are reminded that client complaints about delays in account transfers are regulatory issues that must be reported to the Association on ComSet pursuant to Policy 8. A client complaint concerning account transfers that is reported to the Association will be treated seriously and may be referred to the Enforcement Department if appropriate.

Not sure what commitments trust companies, like Peoples Trust, or credit unions have agreed to for registered account transfers.

February 28, 2016
3:21 pm
Saver-Mom
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Superb! Will keep you posted!

February 28, 2016
4:44 pm
Loonie
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Great research, Norman!
There is still a lot of weasel wording with the banks though. - "will endeavour" is hardly a commitment. It's kind of insulting, really.
How about "I will endeavour to pay my mortgage and credit card bills on time."? but, gosh, I ran a bit short this month, and I'm sure you'll understand. My tardiness cost you money? Oh well, it's just a little bit of money. Will that do?

Only enforceable regulation will protect us. This means government regulation, to protect the consumer, and disclosure about offenders.

Best bet remains for receiving institution to get on their case because, if "endeavours" are not sufficient, it's us who suffer. Would love to know why the trust companies don't appear to have made any provisions for this.

March 10, 2016
5:58 pm
Saver-Mom
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Good news: BMO Investorline transferred my RRSP in 10 days and TDWaterhouse in 12 days! Only called each once to encourage the process. TD erroneously thought they had not received the request but really had, BMO could immediately see the request on my profile. There will be fees deducted from each account, and DUCA will cover part of these transfer fees. DUCA staff have been very pleasant and available. This is from them:

DUCA will offer to reimburse transfer-In fees during the RSP season based on the amounts below:

<$25,000 – no reimbursement
$25,000-$50,000 = $50
$50,000-200,000 = $75
$200,000 = $100

March 11, 2016
6:16 am
Loonie
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thanks for the report, Saver-Mom.

August 2, 2017
8:25 am
swan
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Norman1 said
Banks and brokers have made some commitments for transfer times.

Chartered banks have agreed those listed in Voluntary Commitments and Codes of Conduct. In the Guidelines for Transfers of Registered Plans, the banks have agreed to the following:

Chartered banks will endeavour to process transfers of deposit type registered plans in a maximum of seven (7) business days normally and twelve (12) business days during peak time (February 15 - March 31) from the date the bank receives the complete and accurate documentation (whether at the branch or the processing centre) or the maturity date of the instrument, whichever is later, to the date that the cheque is mailed to the receiving institution.

Regulation 2300 of the Investment Dealers Association governs transfers from brokers. Brokers have around 10 settlement days to complete outgoing transfers after they receive the request.

Looks like some brokers did not take Regulation 2300 seriously in the past. In 2006, the Enforcement division of the Investment Dealers Association issued Bulletin MR0422 - Account Transfers (September 20, 2006) with this:

Concerns about adherence with IDA Regulation 2300 have come to the attention of the Enforcement Department of the Association.

Members are directed to review Regulation 2300 and to ensure strict adherence with the time limits for ensuring prompt and efficient account transfers. Further, given the potential for client harm resulting from delays in the transfer of accounts, the Association expects Members will review and monitor processes in place to effect prompt account transfers.

[Asset Listing: Two Clearing Days]
[Settlement: Ten Clearing Days]
...

Members are reminded that client complaints about delays in account transfers are regulatory issues that must be reported to the Association on ComSet pursuant to Policy 8. A client complaint concerning account transfers that is reported to the Association will be treated seriously and may be referred to the Enforcement Department if appropriate.

Not sure what commitments trust companies, like Peoples Trust, or credit unions have agreed to for registered account transfers.Β Β 

The trouble i had with out look financial non of these rules or codes of conduct apply to them and they take 6 weeks to tranfer an RRSP any help with credit unions ?

August 2, 2017
11:38 am
Doug
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The CBA has a Voluntary Code of Conduct for banks to adhere to timelines vis-a-vis registered plan transfers. I would think credit unions would have something similar though I can't find anything to support that. The timeline is either 21, 28 or 36 days (can't remember which). What you could do is complain and say they're not adhering to the voluntary code of conduct to which they're a signatory, directly or indirectly through the CCUA. If they deny that to be the case: demand proof with hyperlink to what governs their timelines. πŸ™‚

The CBA's updated blog-style website is GOD AWFUL by the way - they don't publish anymore of their useful backgrounders, guides or codes of conduct they have in the past. πŸ™

Cheers,
Doug

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