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When TFSA GIC mature, what will happen?
April 8, 2020
8:25 am
vincent
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Some banks like oaken does not have TFSA saving account, rather they only provide TFSA GIC. So the question is how can I transfer the matured TFSA GIC balance to another TFSA saving account of another bank. I expect there is no delay for more than 2 weeks and NO tax consequence (eligible TFSA transfer?) meaning it does not consume more TFSA rooms.

My first thought is simple:
1. create an external link to TFSA to another bank (say bank B). This is NOT GIC account
2. give order to oaken (say bank A) to transfer the TFSA GIC balance to the external TFSA account when mature
3. in online bank C create an external link to TFSA in bank B
4. in online bank C create a new TFSA GIC and have TFSA in bank B as funding source.
5. repeat above process when TFSA GIC mature in bank C.

In this way I can always find better TFSA GIC rate and never stuck in any bank and never have concern about the TFSA room, and never have to make sure the GIC mature near end of the year.
However, after looking some posting I am not sure whether this is possible. If not, what is the best practice? BTW putting money in non-TFSA GIC/saving long is not a good option for me.

Thank you

April 8, 2020
10:12 am
JenE
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This Government page explains what you must do (and what you shouldn't do!)
https://www.canada.ca/en.html

April 8, 2020
10:25 am
Norman1
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vincent said

My first thought is simple:
1. create an external link to TFSA to another bank (say bank B). This is NOT GIC account
2. give order to oaken (say bank A) to transfer the TFSA GIC balance to the external TFSA account when mature

However, after looking some posting I am not sure whether this is possible.…

Unfortunately, that is not possible with registered accounts, like TFSA's, right now.

There's documentation the receiving financial institution needs to send to the relinquishing financial institution to request the transfer.

April 8, 2020
11:50 am
LeBronBMT
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Unfortunately, that is not possible with registered accounts, like TFSA's, right now.

There's documentation the receiving financial institution needs to send to the relinquishing financial institution to request the transfer.  

Are you saying it's not possible to link TFSA accounts to make transfers or something else?

April 8, 2020
12:24 pm
Rodster
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I think the best approach would be to arrange a direct transfer from your TFSA when the GIC matures, to another financial institution where you would like the money to go.

You will have to fill out some paperwork to ensure this is a direct transfer under the CRA rules, rather than a deregistration of your TFSA. If the latter, you will have to wait until January to recontribute this amount.

If you do this transfer under the CRA rules, then the FI giving up the money may charge a fee for the transfer. The new institution may agree to reimburse this fee. You will have to check with both FIs to see what their rules are.

Of course, you could just reinvest the money at the existing FI.

April 8, 2020
12:53 pm
vincent
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Well it is a bit more complicated than I thought.

So for some banks (guess tangerine) there are both TFSA GIC account and TFSA saving account (no term). My understanding is that when creating a new TFSA GIC, we can always order the bank to move money from TFSA GIC to TFSA saving account when GIC mature. Is this correct?

I guess TFSA GIC will not earn interest after mature so it make sense to move money to TFSA saving account. After a few days guess the empty TFSA GIC will be removed by bank, I guess.

When money is in TFSA saving account we can fill forms in new bank to transfer TFSA from original bank, which may take 2 weeks. I guess external link does not work for TFSA/RSP account.

Is there anyone who have TFSA GIC with oaken? What did you do when it mature?

April 8, 2020
1:16 pm
Alexandre
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vincent said

So for some banks (guess tangerine) there are both TFSA GIC account and TFSA saving account (no term). My understanding is that when creating a new TFSA GIC, we can always order the bank to move money from TFSA GIC to TFSA saving account when GIC mature. Is this correct?

This is correct. Same works for RRSP GIC with Tangerine.

To be more specific, when creating a new TFSA (RRSP) GIC, Tangerine asks what to do when it matures and what to do with interest payments. I always select both go back to TFSA (RRSP) Savings, to avoid complications with CRA.

Then, I have as much time as I need, to decide what to do with money held in TFSA (RRSP) Savings account.

One of the things I like about Tangerine.

April 8, 2020
1:17 pm
Alexandra
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vincent said
Well it is a bit more complicated than I thought.

So for some banks (guess tangerine) there are both TFSA GIC account and TFSA saving account (no term). My understanding is that when creating a new TFSA GIC, we can always order the bank to move money from TFSA GIC to TFSA saving account when GIC mature. Is this correct?

I guess TFSA GIC will not earn interest after mature so it make sense to move money to TFSA saving account. After a few days guess the empty TFSA GIC will be removed by bank, I guess.

When money is in TFSA saving account we can fill forms in new bank to transfer TFSA from original bank, which may take 2 weeks. I guess external link does not work for TFSA/RSP account.

Is there anyone who have TFSA GIC with oaken? What did you do when it mature?  

April 8, 2020
1:23 pm
Alexandra
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I have a few TFSA GIC's with Tangerine. Also have a daily interest TFSA with them.
Usually when a GIC comes due, I will have them put it in my TFSA DISA. This way, say if you are going to purchase a new years TFSA GIC you can put the funds in the DISA where the other funds are, combine the two and purchase a single GIC. You may feel the rates are going to go up in a few days so you can just let it sit until you repurchase. Or, not that I have done it, if you are going to transfer to another bank, it pretty well has to go out of the DISA.

April 8, 2020
1:34 pm
JenE
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When I transferred a TFSA GIC from Oaken I had to first contact the FI where I wanted the GIC to go. If you don’t have an account presently with the FI you want the TFSA to go, you’ll have to open one up. That FI will have TFSA transfer-in form that you’ll have to complete. Usually you have to send that form to the new FI and they then complete their part of it and send it off to Oaken. Upon receipt at Oaken, the transfer will take place. It may take a few weeks. Always good to keep your eye on it. Hope this helps.

April 8, 2020
2:27 pm
Norman1
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vincent said
Well it is a bit more complicated than I thought.

So for some banks (guess tangerine) there are both TFSA GIC account and TFSA saving account (no term). My understanding is that when creating a new TFSA GIC, we can always order the bank to move money from TFSA GIC to TFSA saving account when GIC mature. Is this correct?

Some TFSA issuers will set up the GIC's and the savings account to be separate TFSA accounts and do the direct transfers internally between them.

Others will set up one TFSA account that has a savings account part and GIC's. In such cases, there are no actual transfers. Money either sits in the savings account part or is invested in a GIC, all within a single TFSA.

April 8, 2020
4:35 pm
GICinvestor
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vincent said
Some banks like oaken does not have TFSA saving account, rather they only provide TFSA GIC. So the question is how can I transfer the matured TFSA GIC balance to another TFSA saving account of another bank. I expect there is no delay for more than 2 weeks and NO tax consequence (eligible TFSA transfer?) meaning it does not consume more TFSA rooms.

My first thought is simple:
1. create an external link to TFSA to another bank (say bank B). This is NOT GIC account
2. give order to oaken (say bank A) to transfer the TFSA GIC balance to the external TFSA account when mature
3. in online bank C create an external link to TFSA in bank B
4. in online bank C create a new TFSA GIC and have TFSA in bank B as funding source.
5. repeat above process when TFSA GIC mature in bank C.

In this way I can always find better TFSA GIC rate and never stuck in any bank and never have concern about the TFSA room, and never have to make sure the GIC mature near end of the year.
However, after looking some posting I am not sure whether this is possible. If not, what is the best practice? BTW putting money in non-TFSA GIC/saving long is not a good option for me.

Thank you  

I have done this with Oaken.

They send a letter well before the TFSA GIC matures. You indicate that you going to transfer out. And call them too.

Find your “Transfer to” FI. Fill out the transfer form from the new FI. Mail it to your new FI and they will handle it for you.

I personally plan to move all my TFSA out of Oaken because of their no savings account policy as their solution or unsolution does not meet my needs.

April 8, 2020
5:03 pm
Norman1
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LeBronBMT said

Are you saying it's not possible to link TFSA accounts to make transfers or something else?

That's correct. It is not possible to link TFSA accounts to make what are considered to be direct transfers between them.

Scotia iTRADE allows their registered accounts to receive bill payments. However, those payments are considered to be new contributions to the receiving RRSP or TFSA.

Alterna Bank allows one to link an external account with their TFSA or RRSP accounts. One may then make new contributions by pulling funds from the external account.

April 8, 2020
6:09 pm
GICinvestor
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If you are talking about linking TFSA accounts to another FI TFSA Account there would be a couple of issues.

1. Leaving one TFSA contract and moving to a different contract.
2. The registering of these moves to CRA.

April 8, 2020
8:41 pm
Save2Retire@55
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This is easy. I did (and reverted back) this just last week with Oaken.
Depends on where you are moving the money, mine was Tangerine, open a TFSA or RRSP account there. Fill out the application to tell them where the new account will be funded from, digital sign, Done.

April 9, 2020
7:52 am
vincent
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Believe I got the answers. To avoid several weeks of delay to transfer TFSA cash between different FI, I may choose some FI with both TFSA saving and TFSA GIC. Looks like people trust, Hubert could be options.

June 14, 2020
7:09 am
dwdrajesh
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Alexandra said
I have a few TFSA GIC's with Tangerine. Also have a daily interest TFSA with them.
Usually when a GIC comes due, I will have them put it in my TFSA DISA. This way, say if you are going to purchase a new years TFSA GIC you can put the funds in the DISA where the other funds are, combine the two and purchase a single GIC. You may feel the rates are going to go up in a few days so you can just let it sit until you repurchase. Or, not that I have done it, if you are going to transfer to another bank, it pretty well has to go out of the DISA.  

What is DISA in Tangerine? I also have TFSA which I opened just this April, back then they were offering new accounts 2.8% until Sept in the normal savings account while TFSA GICs were like 2.3%. So I just left it in a normal TFSA savings account but now with the new Corona situation, their GICs are below 2% I think. I feel like I should have put the TFSA in the GIC back then 🙂

June 14, 2020
7:11 am
dwdrajesh
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Save2Retire@55 said
This is easy. I did (and reverted back) this just last week with Oaken.
Depends on where you are moving the money, mine was Tangerine, open a TFSA or RRSP account there. Fill out the application to tell them where the new account will be funded from, digital sign, Done.  

How much does Tangerine charge for moving TFSA from them to another bank? Are all the paper work online, just scan the signed form and email them? or do we need to post the actual copy? THanks

June 14, 2020
8:07 am
cruzinalong
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$50. Probably plus HST. Depends on your investment mix. Maybe better to take the money out when it is available and transfer it where you want. Before 2001 there was no fee to transfer RRSP with a T2033. Not sure when FI's started charging fees on transfers since I had consolidated by then. Some FI waved the $125 transfer fee on large transfers before 2016. Not anymore.

June 14, 2020
8:31 am
GICinvestor
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dwdrajesh said

How much does Tangerine charge for moving TFSA from them to another bank? Are all the paper work online, just scan the signed form and email them? or do we need to post the actual copy? THanks  

You can to an alternative move by letting your Tangerine GIC mature into your Tangerine TFSA savings account. Then in Nov Dec follow Tangerines guidelines to move the funds from TFSA savings to your non registered savings account. Hold the funds til January of the next year and deposit the 'exact same amount' (or less) into a different FI's TFSA account. It should be all free unless Tangerine has any charges for withdrawing from your TFSA account.

Sign up for MY ACCOUNT at CRA to track your TFSA deposits, withdrawals and eligible annual contributions. But don't expect the CRA account be up to date until March/April.

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