Personal Finance

Moving RSP from one bank to another?

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  • Feb 28th, 2021 10:29 pm
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Moving RSP from one bank to another?

Is there any fee to move an RSP from one bank to another? Have a minimal amount with Tangerine and would like to move it to my main bank.

Also have a RSP thru a broker that I would like to transfer to my main bank. Is there any fee to transfer these RSP?
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cheapmeister wrote: Is there any fee to move an RSP from one bank to another? Have a minimal amount with Tangerine and would like to move it to my main bank.

Also have a RSP thru a broker that I would like to transfer to my main bank. Is there any fee to transfer these RSP?
Most investment companies(I.e. banks, mutual fund, investment brokers) have fees which are charged by each company and not imposed by CRA. It would be very easy to find out by going to the bank’s website or contact them.

Would the following help you?
https://www.tangerine.ca/file_source/fb ... hedule.pdf
Last edited by ml88888888 on Feb 28th, 2021 7:52 pm, edited 1 time in total.
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cheapmeister wrote: Is there any fee to move an RSP from one bank to another? Have a minimal amount with Tangerine and would like to move it to my main bank.

Also have a RSP thru a broker that I would like to transfer to my main bank. Is there any fee to transfer these RSP?
Bank/investment firm charge a $50 to transfer your RRSP. But some will eat the fee if you meet the minimum transfer amount, minimum is $25,000 (CI Investment is one of them).
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cgtlky wrote: Bank/investment firm charge a $50 to transfer your RRSP. But some will eat the fee if you meet the minimum transfer amount, minimum is $25,000 (CI Investment is one of them).
At least $50. Lately these fees are creeping up. I've seen $150 in some cases. Only free ones are savings ones like Oaken, Achieva and EQ Bank

@cheapmeister  look for a "transfer-out" fee at the RSP provider. It should be listed on their fee schedule.

If you have an accounts manager on your bank, see whether they would be willing to cover the fee.

Curious, you said broker to main bank. Any specific reason you are going back to your bank?
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cheapmeister wrote: Is there any fee to move an RSP from one bank to another? Have a minimal amount with Tangerine and would like to move it to my main bank.

Also have a RSP thru a broker that I would like to transfer to my main bank. Is there any fee to transfer these RSP?
Most, if not all investment/financial institutions will charge a fee to move a registered account (such as TFSA, RRSP, LIRA, etc.) from their institution to a totally different institution. The only time, there isn't normally a fee is if the customer is transferring the amount within the financial institutions "family" (for example, transferring an RRSP from TD Canada Trust Savings Account to a TD Direct Investing account with TD Waterhouse will not have a fee).

Depending on the amount that you are transferring, the receiving financial institution might cover the transfer fees. For example, when I transferred over $100k from my old employment RRSP account with ManuLife to TD Wealth, TD Wealth covered the fee. RBC also offered to cover the fee (but I just decided to go with TD as they had a promotion). If transferring a small amount, I don't see financial institutions covering the transfer free since generally, the transfer fee is ~$100 to ~$150. If you're transferring only a maturing $1000 RRSP GIC, they won't cover it. Some financial/investment institutions will not cover the transfer fee (ex: when I was transferring my RRSP from Manulife, I asked my current employer's RRSP firm SunLife and without me mentioning the amount of the transfer, I was just told "no").

Since you're transferring out of Tangerine, I am aware with 100% certainty that they do charge a fee to transfer any funds from a registered account with them to a registered account at another financial/investment institution.
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xgbsSS wrote: At least $50. Lately these fees are creeping up. I've seen $150 in some cases. Only free ones are savings ones like Oaken, Achieva and EQ Bank

@cheapmeister  look for a "transfer-out" fee at the RSP provider. It should be listed on their fee schedule.

If you have an accounts manager on your bank, see whether they would be willing to cover the fee.

Curious, you said broker to main bank. Any specific reason you are going back to your bank?
Got a small mutual fund amount invested through a broker from a long time ago. Was thinking of moving it to TD direct investing where I have TD eseries funds.
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cheapmeister wrote:
Got a small mutual fund amount invested through a broker from a long time ago. Was thinking of moving it to TD direct investing where I have TD eseries funds.
Hmm... depending on the amount, and the fund you have with the broker, it might not be worth the switch despite savings in MER because the transfer fee would outstrip the benefit.

If that is the case, I probably would recommend keeping it with the fund, look at switching the fund within the same broker, or even consider changing that one account to RRIF to withdraw it if you are eligible should the deregistration fee be free under RRIF.
Of course check with TD to see if they will cover it. Even if it doesnt meet their mininum, some brokerages will give one-off transfer coverage for customer retention purposes.

Would you be able to disclose the fund name and class and/or fund code and general amount?
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[OP]
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xgbsSS wrote: Hmm... depending on the amount, and the fund you have with the broker, it might not be worth the switch despite savings in MER because the transfer fee would outstrip the benefit.

If that is the case, I probably would recommend keeping it with the fund, look at switching the fund within the same broker, or even consider changing that one account to RRIF to withdraw it if you are eligible should the deregistration fee be free under RRIF.
Of course check with TD to see if they will cover it. Even if it doesnt meet their mininum, some brokerages will give one-off transfer coverage for customer retention purposes.

Would you be able to disclose the fund name and class and/or fund code and general amount?
Its just a couple grand, so I don't think its really worth it to move. I think its in manulife funds but I would have to go find a statement to see which exact fund its in. I'll probably just leave it there then.

Also I have some non-registered mutual funds with manulife as well. Is it after 7 years I can redeem it without having to pay the redemption fee to the broker?
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cheapmeister wrote: Its just a couple grand, so I don't think its really worth it to move. I think its in manulife funds but I would have to go find a statement to see which exact fund its in. I'll probably just leave it there then.

Also I have some non-registered mutual funds with manulife as well. Is it after 7 years I can redeem it without having to pay the redemption fee to the broker?
Manulife does have some competitive funds so if you decide to keep it there, you could consider transferring it into those. Or your fund itself could be quite competitive already. Also if you bought this from a broker, there is a chance these are not terribly expensive funds (I'm assuming you already looked at this, but you never know...)

Generally yes, although without knowing the class of fund you bought, it is hard to say.

Just keep in mind when keeping it with your broker, some charge monthly fees if you don't have enough balances in all your accounts. For instance, Sun Life group plan after you quit an employer charges $10 a month. That's how I almost lost half my LIRA once (it wasn't worth much, but the principle is what bothered me on this).
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