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WARNING: Transfer-out fees from Tangerine for registered accounts
October 21, 2014
12:47 pm
Loonie
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Beginning 1 Jan 2015, Tangerine will charge you $45 to transfer any registered account to another financial institution. This was confirmed through conversation with Tang rep.

I feel that this is a symptom of the takeover by Scotia. They are doing it because they think they can get away with it. It is a sign of a change of corporate culture. I felt this was already creeping in in the way they have redesigned their website, as it is getting harder and harder to find what you want.

I will be closing, most, if not all, of my Tangerine accounts.

October 21, 2014
3:06 pm
James
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Thanks for the information Loonie. I have used Tangerine (ING) in the past, specifically because they don't have transfer fees. I can now cross them off the list for future registered deposits.

October 21, 2014
3:49 pm
Loonie
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The rep said that account holders would all be getting notified by mail, whenever that might be.
The info is now available in the fine print, at least for the TFSA, and presumably for the others too, but it doesn't specify Jan 1, so I no longer know what to think.
http://www.tangerine.ca/en/inv.....index.html

October 21, 2014
5:32 pm
Calan
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Very interesting. Still like Tangerine for no-fee chequing, depositing cheques from cellphone, unlimited transfers to/from savings accounts, etc, but this will be yet another strike against them as I continuously evaluate my options. Thanks for the tip!

October 21, 2014
5:49 pm
Rick
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Glad I transferred my RSP's out last year. Still have 1 maturing in 2015 and one in 2016. My TFSA's are long out of ING, but if even if they weren't, I'd just transfer them to a reg savings in Dec, to another institution, and back into a TFSA in Jan. Not many places left that don't charge a fee to transfer registered accounts out now. I believe People's Trust still does that without a charge....any others?

October 21, 2014
6:01 pm
kanaka
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Oaken does not charge fees..
Could not find on their web site..but this is what they sent me by email....
Oaken Financial does not reimburse any transfer fees that you may incur from Coast Capital. Please note that Oaken does not charge any transfer in/out or service fees.

October 21, 2014
8:06 pm
Loonie
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And Oaken has better rates too. The Tang rep tried to tell me, that it is necessary to cover admin costs. They cover their admin costs very well by giving us lower interest rates. Isn't it interesting how ING did very well without having to cover "admin costs" in this way? It's BNS takeover that is the problem, and you can take out the "N".

I must admit that I don't understand how any financial institution that wants to position itself as modern, new, creative, hip, or whatever, can charge fees. Don't they read the research? Canadians' antipathy towards bank fees is right up there with going to the dentist. You wanna make nice with the customer, who has the dough, you don't charge them fees. It really is that simple. People will even put up with inferior rates, as most of us have been doing to some extent, if you have excellent customer service and you don't ding us. I was not rushing to take my money out of there, and have had accounts there almost since ING opened, but now I am in a hurry to move them.

October 21, 2014
8:06 pm
jgclghrn
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Loonie said

The rep said that account holders would all be getting notified by mail, whenever that might be.
The info is now available in the fine print, at least for the TFSA, and presumably for the others too, but it doesn't specify Jan 1, so I no longer know what to think.
http://www.tangerine.ca/en/inv.....index.html

I see the $45 fee is quoted in the RRSP fine print as well. So much for their pitch, "No fees or service charges while you save with us: Because we know that every penny counts, we don't believe in unfair fees or service charges". sf-confused

October 21, 2014
8:16 pm
kanaka
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Yes the WHILE YOU SAVE WITH US has a very loaded meaning doesn't it. Or better said, fees apply when you stop saving with us. Deceptive wording equals don't trust them.

October 21, 2014
8:38 pm
Peter
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I remember this article (http://www.thestar.com/busines.....omers.html), where the journalist wrote: "It makes sense for Scotia to keep its hands off, but the bank purchased ING to make money for shareholders. If there’s a way to charge more, reduce costs, or add fees you can bet they’ll find it."

And this one (http://www.thestar.com/busines.....rvive.html) with Peter Aceto boasting about how Tangerine would stay different.

And this one (https://forwardthinking.tangerine.ca/en/#!/post/we-have-a-new-name) where Peter Aceto says: "Nothing has changed about our core values and what we stand for. We’re keeping everything you love about ING DIRECT. Great interest rates. No fees, and award winning customer service."

October 21, 2014
9:28 pm
Loonie
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October 22, 2014
7:15 am
SlowPoke
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Son of a gun, while I was hoping for them to maintain, they've continued down the slippery slope. Definitely past time to move remaining funds to a better institution before the fee's kick in

October 22, 2014
8:39 am
kanaka
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Not sure who originally owned Trade Freedom, a discount brokerage. When I signed up with them I knew at that time they were owned by BNS. A few years ago BNS consolidated 3 of their discount brokerages to iTRADE. Along with the changes was a change of "fees" to, of course, the higher of the three! No big surprise for Tangerine now owned by BNS.sf-surprised

October 22, 2014
1:41 pm
SlowPoke
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Loonie said

The rep said that account holders would all be getting notified by mail, whenever that might be.
The info is now available in the fine print, at least for the TFSA, and presumably for the others too, but it doesn't specify Jan 1, so I no longer know what to think.
http://www.tangerine.ca/en/inv.....index.html

Yet another reason to avoid their "TFSA Kick Start Account 2015"

October 22, 2014
4:19 pm
Rick
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Scotia took over ING, RBC took over Ally, TD took over Canada Trust, probably others not coming to mind right now. It's like cell phone carriers....doesn't matter who you sign with, it's owned by Rogers, Telus or Bell. Maybe time for the government to step in. sf-cry

October 22, 2014
7:42 pm
AltaRed
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I know it is not a popular view but I support the imposition of transfer out fees. People who institution hop cost the rest of us real money, at least indirectly in potentially reduced returns (interest rates on deposits or lower dividends as shareholders).

October 22, 2014
7:43 pm
jgclghrn
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With respect to the Kickstart program, I guess you could still do what Musicalmaestro suggested in the Kickstart thread to take advantage of the 2.6% offer. Just transfer everything out of the Kickstart to your savings or chequing account by Dec. 31. The 1.3% bonus interest will go into your TFSA on Jan. 1. Then you can transfer your principle and regular interest to an institution that doesn't charge a transfer fee and hopefully has better rates. This would leave around $17 bonus interest in your TFSA (depending on when you made your Kickstart deposit) which you could manually withdraw at the end of 2015 and deposit somewhere else at the beginning of 2016.

In any case I intend to transfer my RRSP and TFSA out as soon as my next GICs mature.

October 22, 2014
9:08 pm
jgclghrn
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AltaRed said

I know it is not a popular view but I support the imposition of transfer out fees. People who institution hop cost the rest of us real money, at least indirectly in potentially reduced returns (interest rates on deposits or lower dividends as shareholders).

I'm not sure I get your point. Maybe you could give me a scenario that would clarify it?

Why would being loyal and not shopping around for the best deal for your money actually get you a higher rate of interest (i.e. no one institution hopped)? Or put another way, why would a bank give its customers a higher rate because it charges fees or makes more money because its customers are loyal? If that was the case the Big Banks would offer the highest rates. I guess if you held shares in that institution it would possibly get you a better dividend along with higher pay for its executives?

October 22, 2014
9:11 pm
kanaka
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AltaRed said

I know it is not a popular view but I support the imposition of transfer out fees. People who institution hop cost the rest of us real money, at least indirectly in potentially reduced returns (interest rates on deposits or lower dividends as shareholders).

If a financial institution offers no fees then.....that is what it should be no fees. Also if you have a GIC in a regular account and you let it mature. You make some interest and the bank uses your money and makes more than what you receive. At maturity the funds can be directed to your account and you can move those funds anywhere with no fee. So what is so different because it is a TFSA? While some hop ... if you have been misled or have shabby service you may also want to move your funds. And keep in mind there is that one loop hole to avoid TFSA transfer fees where there isn't for RRSP.

October 22, 2014
9:26 pm
AltaRed
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I am just saying, based on the original post, that it is not at all outrageous (or unreasonable) for a firm to charge transfer out fees for registered accounts in particular. It takes resources and thus cost to transfer out such an account. Why should that institution do it for free....for a departing customer?

I don't see anything misleading about Tangerine's ""No fees or service charges while you save with us: Because we know that every penny counts, we don't believe in unfair fees or service charges". A registered account is not a savings account. An investment account has a lot more regulatory oversight to it than a mere savings account (or chequing account).

As a shareholder of BMO, BNS, RY, etc. I see nothing unreasonable about charging "reasonable fees and service charges" , i.e. essentially at cost for services rendered. When I worked for a corporation, it easily cost, on an 'all in' overhead basis, between $25 and $50 to fill out and generate one official piece of paper... 'all in' meaning the direct labour, use of machines, office space, issuance, the ongoing file management of that piece of paper. Discount brokerages charge in the order of $150 to transfer out securities accounts for similar reasons.

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