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Best way to move TFSA money from PT to Zag
February 27, 2016
12:16 pm
Save2Retire@55
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Hello. After some search, I think, at this time, there is no better with no risk option than moving my whole TFSA (without closing the account) from PeoplesTrust to Zag Bank special offer of 2 years GIC for 2.5%.

I thought about moving it to EQBank (their regular 3% saving) but then that might drop in 1 - 2 years from 3% to less than 2% same as what happened with PT so reconsidered of moving and locking it to Zag 2 years 2.5%.

So wondering if 1. This is the best I can do or any better thoughts before I start the process? 2. What is the easiest way to move from PT to Zag knowing I have never been a customer with Zag and don't currently have any kind of accounts with them. Shall I ask Zag to request the money from PT or should I email / call PT and ask them to move it to Zag?

Any advice or recommendation is much appreciated. Thanks

February 27, 2016
12:56 pm
Norman1
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It depends on which Zag two-year, 2½% GIC the money in the Peoples Trust TFSA will be moved to.

If it is the non-registered Zag two-year GIC, then one could just do a regular withdrawal from the Peoples Trust TFSA to a linked account. After that, buy the non-registered Zag two-year GIC with the money from the linked account.

If it is the Zag Tax-Free two-year GIC, then the direct TFSA-to-TFSA transfer would have to be initiated by Zag, the receiving institution. You'll likely use the Tax–Free Savings Account (TFSA) Direct Transfer Form from Zag's Forms page.

February 27, 2016
1:13 pm
Winnie
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Yas said
So wondering if 2. What is the easiest way to move from PT to Zag knowing I have never been a customer with Zag and don't currently have any kind of accounts with them. Shall I ask Zag to request the money from PT or should I email / call PT and ask them to move it to Zag?

The only way to directly move TFSA from PT to Zag:

1. Open Zag TFSA account online, you will receive a reference number.
2. Use the Tax–Free Savings Account (TFSA) Direct Transfer Form from Zag's Forms page and send it to Zag.
3. A few days later, if Zag's "TFSA department" will accept that form, Zag will start TFSA direct transfer of your TFSA from PT to Zag.

Good luck, but I do not recommend Zag to you at all, because they did mistakes in my case and Zag's Managers had no desire to correct those mistakes. Zag's regular CSR's only good for "validating" Zag's customers, what I discovered, they can't actually help or resolve anything.

February 27, 2016
10:14 pm
Loonie
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I wouldn't do a TFSA-to-TFSA transfer without getting written agreement from Zag that they will still honour the rate when the money arrives from PT.

Perhaps someone who has had experience with transferring a TFSA out of Peoples directly to another institution can comment on how long their transfer process typically takes. As of now, this time frame is not regulated.

February 28, 2016
2:24 pm
SavingIsGood
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I doubt any fin.inst is willing to guarantee you current interest rate regarding TFSA as transfer time varies and can be from few 9 business days to weeks and weeks. 2 days for mail to Fin.Inst; 1 day for processing; 2 days for mail from Fin.Inst to PT; 1 day for processing; 2 days for cheque to arrive at Fin.Inst.; 1 day for processing. This is ideal case.
PT does not accept faxes and does not transfer TFSA $ electronically so everything has to be done like it is 19th century...

February 28, 2016
4:53 pm
Loonie
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This time of year,it is pretty much guaranteed to be slower than usual.

It's not true though that no financial institution will guarantee a rate. Many do. The question is whether they will guarantee it long enough for your money to arrive. The ones I am familiar with allow 30 days and some will extend it beyond that if circumstances require but will not promise this in advance

February 28, 2016
5:02 pm
Save2Retire@55
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Loonie said

This time of year,it is pretty much guaranteed to be slower than usual.

It's not true though that no financial institution will guarantee a rate. Many do. The question is whether they will guarantee it long enough for your money to arrive. The ones I am familiar with allow 30 days and some will extend it beyond that if circumstances require but will not promise this in advance

I don't think that's a problem as the current rate is good till end of June. So unless the transfer takes months, I will be good to go. Thanks

February 28, 2016
5:03 pm
Save2Retire@55
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Winnie said

Yas said
So wondering if 2. What is the easiest way to move from PT to Zag knowing I have never been a customer with Zag and don't currently have any kind of accounts with them. Shall I ask Zag to request the money from PT or should I email / call PT and ask them to move it to Zag?

The only way to directly move TFSA from PT to Zag:

1. Open Zag TFSA account online, you will receive a reference number.
2. Use the Tax–Free Savings Account (TFSA) Direct Transfer Form from Zag's Forms page and send it to Zag.
3. A few days later, if Zag's "TFSA department" will accept that form, Zag will start TFSA direct transfer of your TFSA from PT to Zag.

Good luck, but I do not recommend Zag to you at all, because they did mistakes in my case and Zag's Managers had no desire to correct those mistakes. Zag's regular CSR's only good for "validating" Zag's customers, what I discovered, they can't actually help or resolve anything.

Good points. Now, I don't know if opening a TFSA with them is a good idea or not.

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