Investing

HSBC InvestDirect RESP Fee

  • Last Updated:
  • Oct 9th, 2020 11:49 pm
Tags:
[OP]
Member
Dec 14, 2007
231 posts
192 upvotes
Brossard

HSBC InvestDirect RESP Fee

I just noticed in my HSBC InvestDirect RESP account a $50 admin fee for 2020. Anybody else noticed that? Is that new because I don't recall seeing this fee in 2019.
5 replies
Deal Addict
User avatar
Mar 25, 2012
1969 posts
1145 upvotes
Kelowna
chico_001 wrote: I just noticed in my HSBC InvestDirect RESP account a $50 admin fee for 2020. Anybody else noticed that? Is that new because I don't recall seeing this fee in 2019.
Look back in your e-Statements. You probably got charged that fee. I looked on the Internet Archive, but they don't have that page archived, unfortunately. I vaguely recall noting that their RESP annual administrative fees are not not waived when your relationship balance is > than a stipulated amount. If it was a new fee, they had to have notified you 30-60 days in advance. It's also possible they had the fee in the fee schedule, but just hadn't been charging it, so then wouldn't have had to notify customers.

Cheers,
Doug
Deal Addict
Jan 9, 2010
2607 posts
2359 upvotes
dmehus wrote: Look back in your e-Statements. You probably got charged that fee. I looked on the Internet Archive, but they don't have that page archived, unfortunately. I vaguely recall noting that their RESP annual administrative fees are not not waived when your relationship balance is > than a stipulated amount. If it was a new fee, they had to have notified you 30-60 days in advance. It's also possible they had the fee in the fee schedule, but just hadn't been charging it, so then wouldn't have had to notify customers.

Cheers,
Doug
You're right. Here's the fee schedule:

https://www.hsbc.ca/investments/investd ... ions/fees/

If you look at "Registered Accounts (RRSP, RRIF, Locked-In Plans)" you'll see that Footnote 3 stipulates the "Fee only applies when the combined balance of registered accounts is under $25,000 CDN as of May 31. This fee will be debited from registered accounts in June.". Note that Note 3 doesn't apply to RESPs and you'll be charged the $50.

Frankly with their lack of branches, poor customer service, high admin fees, and bad platform, I don't know why anyone who doesn't need cross-border banking services bank with them here in Canada, unless you really need to bank in Cantonese/Mandarin.
Deal Addict
User avatar
Mar 25, 2012
1969 posts
1145 upvotes
Kelowna
moofur wrote: You're right. Here's the fee schedule:

https://www.hsbc.ca/investments/investd ... ions/fees/

If you look at "Registered Accounts (RRSP, RRIF, Locked-In Plans)" you'll see that Footnote 3 stipulates the "Fee only applies when the combined balance of registered accounts is under $25,000 CDN as of May 31. This fee will be debited from registered accounts in June.". Note that Note 3 doesn't apply to RESPs and you'll be charged the $50.

Frankly with their lack of branches, poor customer service, high admin fees, and bad platform, I don't know why anyone who doesn't need cross-border banking services bank with them here in Canada, unless you really need to bank in Cantonese/Mandarin.
@moofur Yeah, I can't say with 100% certainty that there wasn't a change to the RESP note 3, but am 99% sure there wasn't.

HSBC InvestDirect does have a pretty intuitive, decent trading platform, and it's great for global stock trading (better than TD Direct Investing, I would say). One major downside is you can (unless that's changed) only have one linked external bank account accessible online; if you want to add funds from another or dispatch funds to another linked bank account, you have to call in to HSBC InvestDirect.

Other than the global stock trading, if you like the interface and e-Statements, it's more or less the same as National Bank Direct Brokerage (who prepares the HSBC InvestDirect e-Statements and acts as carrying broker for HSBC InvestDirect in Canada).

Cheers,
Doug
Newbie
Oct 28, 2013
8 posts
8 upvotes
Ontario
HSBC InvestDirect waives fees on other registered accounts if your balance is over $25,000. It seems odd that there is no similar threshold for RESPs. Have you asked your HSBC RM to reverse the charge? Failing that I know CIBC InvestorEdge does not charge any annual RESP admin fees (and expect it is the same with most others).
Deal Addict
Feb 4, 2003
3298 posts
1686 upvotes
How did you setup your resp account on InvestDirect?
hsbc investdirect.png

Top

Thread Information

There is currently 1 user viewing this thread. (0 members and 1 guest)