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Question about transferring TFSA
March 23, 2020
12:57 am
Loonie
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Friend has TFSA at Bank A which is invested in a mutual fund.
Friend wishes to transfer this TFSA to Bank B and to keep it in a simple savings account there as some of it will soon be needed. Friend already has a TFSA savings account at Bank B, to which this one will be added.

Question: Can the friend simply fill out the transfer form at Bank B (CIBC) and have them submit it to Bank A, or does friend have to go to Bank A first and get rid of the mutual fund there?

Friend does not want to have any further dealings with Bank A, so does not want to have to go in there to look after selling off the mutual fund.

Second question. Can the transfer form be submitted through the mail or some method that does not involve going into the bank? Friend is in his 80s and does not want unnecessary exposure to virus.

March 23, 2020
4:42 am
Norman1
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Yes, the friend can fill out the TFSA transfer form at Bank B (CIBC) and Bank B will send it to Bank A. Just specify that the account should be transferred out all in-cash instead of all in-kind.

Bank B will sell the mutual funds when it processes the TFSA form.

Usually, TFSA and RRSP transfers can be done through the mail.

March 23, 2020
6:01 am
dommm
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I recently transferred a partial RRSP (assume TFSA is similar) from TD Web Broker to a Credit Union. I did not until this transaction have an account of any nature with the Credit Union. I filled out all the forms that the Credit Union sent me via email. Some forms could be filled out & returned without even having to print, fill, scan & attach. I wrote instructions on the transfer form to sell a portion of my holdings that I held within my TD Web Broker account & then send the cash amount from the sale to the Credit Union. Everything went smooth & was completed within 2 weeks & I never needed to leave my house or contact TD Web Broker nor mail anything via snail mail. The Credit Union used a service called Docuserve (I think) that allowed for digital signatures.

March 23, 2020
11:29 am
Loonie
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Thanks, guys.
There is reason to believe that Bank A will be reluctant to make the transfer, which is why I ask.

March 23, 2020
11:34 am
GICinvestor
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Would friend dissolve mutual fund to cash first? Then sign forms from bank B to request funds from bank A minus Bank A transfer fee.
Fastest movers (out) I have had are Oaken and People’s. Slowest is Coast Capital and Westminster Credit Union. The latter do it when they feel like with no regard of any urgency.

March 24, 2020
11:18 am
mmlt
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Loonie said
Thanks, guys.
There is reason to believe that Bank A will be reluctant to make the transfer, which is why I ask.  

Yes, the bank may drag their heels depending on the amount. They hate to see large sums leaving their custody.
Bank B(in my case) had to hound bank A. The transfer took at least 2 months including snailmail.
Funny, the person I deal with at bank A still inquires about those funds. My answer is always: "make me a good offer and I'll consider it". They never do of course. I'm way too small.

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