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2020 TFSA GIC rates
January 7, 2020
4:59 am
Loonie
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I wouldn't be at all surprised if the fee increase was part of a strategy such as you have suggested, Saver-Mom. On the other hand, the fee may be here to stay as I've never known any of them to reduce the fee.

They do have to give a certain amount of notice, yes. But it's not enough to cover most GICs.

Tangerine did send me a long page of stuff about new rules coming in January They sent it perhaps 2 months ago or so. You may find it in your email somewhere, not sure; or when you sign in.
I only read the parts that pertained to me, but I imagine they did mention it there. I got rid of the last of my registered products with them a year ago.

I think FIs should be required to hold back on any such changes for pre-existing GICs. (Actually, I don't think there should be any fees allowed at all. It's part of the cost of doing business. But I would compromise at protecting existing GICs.)

Some FIs also charge for withdrawals and for closing a registered account.

It's definitely a cash cow, but I foresee a lot of problems trying to change the system.

Best hope is to choose FIs that have so far resisted the urge to charge. There aren't many, but they also tend to have the better rates, so you know the others are gouging.

Next best is to minimize the number of plans that you have. Try to keep it down to one maturing each year of each type of plan. (I haven't always followed my own good advice on this!)
This can be a pain to arrange, especially with TFSAs as you are putting in a small amount every year and don't want to get stung with a big fee on it at the tend. Make sure your new contribution merges with a maturing one so you don't end up with two when you only wanted one.

And, third, use the leverage of having just one sum to move (potentially) per year to argue for the new FI to pick up all the fee or to perhaps enhance your rate to offset it. (This will not be possible if you will have more than 100K in the account before maturity and if it is in a CDIC FI and if you intend to stay within limits. This is not an issue with CUs.)

Our TFSA contributions, accordingly, are going to Oaken this year. No fee. I have looked at the other options that appear to pay more, but when you are only dealing with 6K, I find no advantage to them in the terms I am looking for.

Some will be able to use the "December manoeuvre" if the timing is right for their investments, but it's more difficult with GICs. And, increasingly, you may see withdrawal fees, but I hope not.
Withdrawal fees won't affect people like me very much - people who never take the money out - but they could be hard on young people who keep it in savings because they don't ave a lot of money and can't afford to sock it away.

January 7, 2020
6:34 am
Saver-Mom
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Looked up and found email with this info sent Oct 3 from Tang, so it looks like the fee increased from $45 to $50, not $125 as prior post by HISAhopper suggested. Sorry if this is off topic, but needed to clarify what was previously written. This is the Tang email I received:

“We’re writing to let you know about upcoming changes. Effective January 1, 2020, in certain circumstances, a fee will be triggered in your Tangerine Savings Account or your organization’s Business Savings Account. We’ve done a thorough assessment to ensure our fees remain fair, and we want to assure you that there will still be no fees for daily savings transactions.

Here’s a summary of the changes:

An NSF Fee of $45 per transaction will apply to pre-authorized payments rejected for non-sufficient funds.

The fee to transfer a registered Savings Account to another financial institution will increase from $45 to $50.

An annual dormancy fee of $20 per Account will be charged for dormant non-registered Savings Accounts. Reactivating your Account(s) is quick and easy. Simply log in at tangerine.ca, and your Account(s) will be automatically reactivated.

A Printed Statement Fee of $2 per document will apply if you choose to receive paper statements by mail. Please note: we’ll waive the Printed Statement Fee until July 1, 2020 to allow you to decide whether you’d like to convert to electronic statements or remain with your current preference. To switch to electronic statements and save the Printed Statement Fee, simply log in at tangerine.ca and go to your name in the top right of the screen, select ‘Profile & Settings’ and then ‘Other Communications’.

Reprints of paper statements or tax receipts will incur a fee of $5 per document reprint.

The updated fee schedule will take effect on January 1, 2020 and further details can be found here.

You can accept the changes above by simply keeping your Account open or using it after January 1, 2020. After this date, the changes will take effect. If you don’t think these changes fit your needs, you have a right to close your Account without additional cost or penalty at any time. If you decide to close your Account before April 1, 2020 and you had paid increased fees, we’ll refund you the fee difference.

If you have any questions about these changes, or want to see other banking options we may have for you, call us at 1-888-826-4374.”

January 7, 2020
10:57 am
Bill
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Pretty easy to check, here's a link to Tangerine's current fees showing there is no $150 transfer fee that some here have reacted to:
https://www.tangerine.ca/en/legal/fee-schedule

Note also that it's pretty common for the institution that the registered funds are being transferred to to reimburse you for any transfer fee levied at the sending end, if you ask.

January 7, 2020
4:08 pm
Loonie
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Good to know the situation is not as bad as feared.
That said, the warning is clear. Fees can and will go up while you have GICs. And new fees can and will be introduced.

Reimbursements are typically limited to whatever the receiving institution is currently charging for transfers. If they charge nothing, they will reimburse nothing., which is only fair. Some (Accelerate) have a graduated scale of what they will pay, depending on size of account.
Where there is a fee for closing an account (National Bank) or for a withdrawal (Luminus), there is no possibility of reimbursement.

January 7, 2020
4:38 pm
HISAhopper
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sorry if I got it wrong, I saw the following in Tangerine PDF file:
"Registered account transfer to another financial institution $125"
link:
https://www.tangerine.ca/file_source/fberoot/pdf/en/FeeSchedule-En.pdf

Wondering what the $125 fee for? I am not knowledgeable about the finance stuffs

January 7, 2020
5:02 pm
rk
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HISAhopper said
sorry if I got it wrong, I saw the following in Tangerine PDF file:
"Registered account transfer to another financial institution $125"
link:
https://www.tangerine.ca/file_source/fberoot/pdf/en/FeeSchedule-En.pdf

Wondering what the $125 fee for? I am not knowledgeable about the finance stuffs  

https://www.tangerine.ca/en/faq/answer?permaLink=are-there-any-fees-transfer-registered-investment-fund-account--generic-phone--en--0--1&responseId=219--QFW-N7j4iuIo01odkrmEYw

Apparently it is for registered investment funds:

Q. Are there any fees to transfer my registered Investment Fund Account to another financial institution?
A. If at some point you decide to transfer your funds to another financial institution, a $125 fee will apply. This will be shown in your Cash Account as two separate transactions (Fee + Tax) totaling $125. However, if you transfer your funds to a registered account at Tangerine, Scotia Wealth Management, or Scotiabank, we’ll waive the fee.

January 8, 2020
8:23 pm
COIN
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HISAhopper said
So 2.55% TFSA + 1% cash total 3.55% interest (18 months)

I think the 1% cash bonus works to 0.6667% over 18 months.

January 9, 2020
10:58 am
HISAhopper
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Thanks Coin for pointing it out.
So 2.55 +0.6667 total around 3.217% , ah not as much as previously thought

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