Personal Finance

Official RFD thread for Tax Free Savings Accounts (See Thread Summary)

Newbie
Jan 26, 2012
1 posts
COQUITLAM
so what's the difference between Canadian Western Bank and Canadian Direct Financial if CDF is under CWB? It seems like CWB would be a better deal considering there is no transfer fee
Moderator
User avatar
Mar 23, 2004
47725 posts
13890 upvotes
Markham
katoe87 wrote: so what's the difference between Canadian Western Bank and Canadian Direct Financial if CDF is under CWB? It seems like CWB would be a better deal considering there is no transfer fee

its like cibc-pcf, bmo-sobeys...
Newbie
Jan 29, 2012
47 posts
15 upvotes
Edmonton
Is the TD transfer fee correct? I asked at my bank when I set up a TFSA mutual fund and as far as she knew there was no transfer fee for their TFSA savings accounts.
Jr. Member
May 13, 2009
130 posts
27 upvotes
katoe87 wrote: so what's the difference between Canadian Western Bank and Canadian Direct Financial if CDF is under CWB? It seems like CWB would be a better deal considering there is no transfer fee

CDF is an online division of CWB. CWB you have to go to a branch, CDF is online/phone only. Both are CDIC insured.
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User avatar
Mar 23, 2004
47725 posts
13890 upvotes
Markham
pinkpanda wrote: Is the TD transfer fee correct? I asked at my bank when I set up a TFSA mutual fund and as far as she knew there was no transfer fee for their TFSA savings accounts.

yip, i m very certain. Maybe your rep means withdrawal.
Newbie
Jan 29, 2012
47 posts
15 upvotes
Edmonton
angel_wing0 wrote: yip, i m very certain. Maybe your rep means withdrawal.

Thanks. She didn't sound too familiar with transfer fees and I don't think she usually sets up the TFSA savings accounts. I just couldn't find it on their website either, so I was hoping that TD just didn't have one.
Moderator
User avatar
Mar 23, 2004
47725 posts
13890 upvotes
Markham
pinkpanda wrote: Thanks. She didn't sound too familiar with transfer fees and I don't think she usually sets up the TFSA savings accounts. I just couldn't find it on their website either, so I was hoping that TD just didn't have one.

i see, only big 5 that does not have it is BMO. Did an actual transfer myself there before so i can certainly vouch for that.
Sr. Member
Sep 17, 2003
702 posts
13 upvotes
Just to confirm, if transferring money from CTFS TFSA to CTFS HS, there should be no transfer fee correct? Then I could transfer from HS to any external financial institution afterwards.. also without fees.
Deal Guru
User avatar
Dec 25, 2003
11091 posts
3503 upvotes
Vancouver
dracore wrote: Just to confirm, if transferring money from CTFS TFSA to CTFS HS, there should be no transfer fee correct? Then I could transfer from HS to any external financial institution afterwards.. also without fees.

Yes, but that would be considered a withdrawal, not a transfer.
Deal Addict
Jan 22, 2009
3637 posts
1646 upvotes
Hi everyone, I have 2 questions that I need help with:
1. I opened a PC TFSA, but PC transferred 1 cent from my cheque account to my TFSA account without letting me know. Since I already reached my contribution limit, I over-contributed 1 cent this year. I'm wondering will I suffer any penalty?

2. I have $1K stuck with TD TFSA. I'm thinking about taking it out from TFSA. So my question is: which one is better, 1.15% TD tax free or 2% Ally non tax free?

Answer will be appreciated!
Deal Guru
User avatar
Dec 25, 2003
11091 posts
3503 upvotes
Vancouver
braveblade wrote: Hi everyone, I have 2 questions that I need help with:
1. I opened a PC TFSA, but PC transferred 1 cent from my cheque account to my TFSA account without letting me know. Since I already reached my contribution limit, I over-contributed 1 cent this year. I'm wondering will I suffer any penalty?

2. I have $1K stuck with TD TFSA. I'm thinking about taking it out from TFSA. So my question is: which one is better, 1.15% TD tax free or 2% Ally non tax free?

Answer will be appreciated!

1. No. The penalty is based on the amount of the over-contribution, so your penalty would be a fraction of a cent.
2. Unless you're in the top tax bracket (earning well over $100K/yr), Ally will be better (assuming the rates stay the same)
Newbie
Jan 20, 2004
55 posts
Hello,

May I ask, If one uses previous years $ sitting in an ING TFSA savings account to purchase a short term ING TFSA GIC, is this considered a withdrawal or a transfer between TFSA products without penalties/fees?

I plan on having the TFSA GIC principle amount along with interest be put back into the ING TFSA savings account on maturity.

Any help would be appreciated,

Thanks in advance.
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User avatar
Mar 23, 2004
47725 posts
13890 upvotes
Markham
[quote="enviro_123" post_id="14203124" time="1328242523" user_id="10942"]Hello,

May I ask, If one uses previous years $ sitting in an ING TFSA savings account to purchase a short term ING TFSA GIC, is this considered a withdrawal or a transfer between TFSA products without penalties/fees? [/qUOTE]

tfsa transfer without fees.
Deal Addict
Oct 3, 2007
1974 posts
156 upvotes
British Columbia
2 Questions:

1. Regarding contribution room and withdrawals:
2011 CR is $15, 000
You deposit the full $15, 000.
You withdraw $2,000, and your acct balance is now $13,000
You re-contribute the $2,000, and you are now at $17,000 contributed (over the limit, and $2,000 will be penalized). Your acct balance however, is at $15,000.
It is now 2012, and your new Contribution room is $20,000

So my question is, the $2000 that you over-contributed due to the withdrawal and recontribution, does it still count against your 2012 contribution room, or is the "withdrawals" reset and you can contribute the full $5,000 for the current year.$4k?

2. Peoples trust…is it safe? Any one deal with them? Wouldnt mind going from Ally to them if its legit… Are they backed by the government or anything?
Moderator
User avatar
Sep 30, 2001
30160 posts
10147 upvotes
Toronto
MC25 wrote: 1. Say, (#'s are for example) the contribution room is $5k, and you did a withdrawal of $1k, and redeposited the amount for that year, you would be at $6k after withdrawals (but only $5k of actual cash), so you would be over. But now that we are in a new year, you have $10k contribution room, are you allowed to deposit $5k, or $4k?
your example is confusing so i'm not sure the scenario you're trying to describe. maybe re-word and break it down?
2. Peoples trust…is it safe? Any one deal with them? Wouldnt mind going from Ally to them if its legit… Are they backed by the government or anything?

yes they're safe and yes people here deal with them. 'backed by the government' i assume you mean are they covered by CDIC and yes they are:
http://www.cdic.ca/members.html#PP
Deal Guru
User avatar
Dec 25, 2003
11091 posts
3503 upvotes
Vancouver
MC25 wrote: 2 Questions:

1. Say, (#'s are for example) the contribution room is $5k, and you did a withdrawal of $1k, and redeposited the amount for that year, you would be at $6k after withdrawals (but only $5k of actual cash), so you would be over. But now that we are in a new year, you have $10k contribution room, are you allowed to deposit $5k, or $4k?

$5K, although you'd be getting penalized on that $1K until the new year.
Deal Addict
Oct 3, 2007
1974 posts
156 upvotes
British Columbia
I think 1226 got what I was saying, but Ill try rewriting that…I had trouble trying to explain it..Ill just use current contribution room too for simplicity.

2011 CR is $15, 000
  • You deposit the full $15, 000.
  • You withdraw $2,000, and your acct balance is now $13,000
  • You re-contribute the $2,000, and you are now at $17,000 contributed (over the limit, and $2,000 will be penalized). Your acct balance however, is at $15,000.
  • It is now 2012, and your new Contribution room is $20,000
So my question is, the $2000 that you over-contributed due to the withdrawal and recontribution, does it still count against your 2012 contribution room, or is the "withdrawals" reset and you can contribute the full $5,000 for the current year.
Newbie
Jan 29, 2012
47 posts
15 upvotes
Edmonton
MC25 wrote: I think 1226 got what I was saying, but Ill try rewriting that…I had trouble trying to explain it..Ill just use current contribution room too for simplicity.

2011 CR is $15, 000
  • You deposit the full $15, 000.
  • You withdraw $2,000, and your acct balance is now $13,000
  • You re-contribute the $2,000, and you are now at $17,000 contributed (over the limit, and $2,000 will be penalized). Your acct balance however, is at $15,000.
  • It is now 2012, and your new Contribution room is $20,000
So my question is, the $2000 that you over-contributed due to the withdrawal and recontribution, does it still count against your 2012 contribution room, or is the "withdrawals" reset and you can contribute the full $5,000 for the current year.
I'm not 100% sure, but I think you would get the $5000. The withdrawal would give you the 'extra' $2000 of contribution for Jan 1, but it would have just been recontributed too soon.

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