Personal Finance

RESP Transfer from RBC to Questrade. Will I lose more than the SAGES (SK) Grant?

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  • Feb 20th, 2020 3:31 pm
[OP]
Sr. Member
Sep 27, 2009
645 posts
381 upvotes
Sask, Canada

RESP Transfer from RBC to Questrade. Will I lose more than the SAGES (SK) Grant?

Currently at RBC for both kids RESP's (mer 2%). One child claimed $187 in grant money from SAGES. I was planning on transferring the RESP's to Questrade and buy VGRO/XGRO but found they never supported the Saskatchewan grant. If i initiate this transfer will I just lose the $187 or will I lose any of the CESG money as well?

If I'm going to lose more than just the SAGES I guess I could transfer over to RBC Investease. Just wanting to make sure I'm not making a mistake and losing a bunch of grant money.

Greatly appreciate all suggestions and guidance.

EDIT

If it makes a difference the one with sages has aprox $9000 in it.

Thanks,

Travis
13 replies
Sr. Member
Jul 1, 2006
570 posts
360 upvotes
Paxonator wrote: Currently at RBC for both kids RESP's (mer 2%). One child claimed $187 in grant money from SAGES. I was planning on transferring the RESP's to Questrade and buy VGRO/XGRO but found they never supported the Saskatchewan grant. If i initiate this transfer will I just lose the $187 or will I lose any of the CESG money as well?

If I'm going to lose more than just the SAGES I guess I could transfer over to RBC Investease. Just wanting to make sure I'm not making a mistake and losing a bunch of grant money.

Greatly appreciate all suggestions and guidance.

EDIT

If it makes a difference the one with sages has aprox $9000 in it.

Thanks,

Travis
I don't actually know the answer to your question... but the CESG is Canadian, so I would expect that there should be no issue with it when being transferred over? Is the problem that Questrade can't hold SAGES grant money?

Since you aren't likely to be transacting a lot in the RESP if you are going to with the one-ticket ETFs, why not just move to RBC Direct (assuming they can hold SAGES grants)? Yeah, the $10 transaction fee sucks, but you'll likely only do that once or twice a year? Or you might look and see if any of the other discount brokerages can hold the SAGES funds? eg: CIBC Investor Line only charges $6.95/transaction.
[OP]
Sr. Member
Sep 27, 2009
645 posts
381 upvotes
Sask, Canada
sckor wrote: I don't actually know the answer to your question... but the CESG is Canadian, so I would expect that there should be no issue with it when being transferred over? Is the problem that Questrade can't hold SAGES grant money?

Since you aren't likely to be transacting a lot in the RESP if you are going to with the one-ticket ETFs, why not just move to RBC Direct (assuming they can hold SAGES grants)? Yeah, the $10 transaction fee sucks, but you'll likely only do that once or twice a year? Or you might look and see if any of the other discount brokerages can hold the SAGES funds? eg: CIBC Investor Line only charges $6.95/transaction.

The Saskatchewan grant is not longer going. I don't really care if I lose the $187 as I'll gain that back just in less mer fees. Just don't wanna lose and cesg grants in the process. I have my TFSA with questrade currently.

Thanks for your reply. Rbc direct has a $25 quarterly fee if your account is under 25000 so I'll skip that one. Check oh CIBC.
Sr. Member
Jul 1, 2006
570 posts
360 upvotes
Paxonator wrote: The Saskatchewan grant is not longer going. I don't really care if I lose the $187 as I'll gain that back just in less mer fees. Just don't wanna lose and cesg grants in the process. I have my TFSA with questrade currently.

Thanks for your reply. Rbc direct has a $25 quarterly fee if your account is under 25000 so I'll skip that one. Check oh CIBC.
If it just about CESG, I don't think you'll have any problem. You might try and call up Questrade to verify?

Surprised that RBC Direct charges on an RESP, a lot of the time they waive those types of fees for registered accounts. Looks like their cutoff is $15K for RESP:
https://www.rbcdirectinvesting.com/acco ... /resp.html

But I doubt RBC Direct will be able to get the CESG and Questrade not... and since you are with Questrade already, it seems like the logical one to pursue first.
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Mar 22, 2010
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Ottawa
sckor wrote: I don't actually know the answer to your question... but the CESG is Canadian, so I would expect that there should be no issue with it when being transferred over? Is the problem that Questrade can't hold SAGES grant money?

Since you aren't likely to be transacting a lot in the RESP if you are going to with the one-ticket ETFs, why not just move to RBC Direct (assuming they can hold SAGES grants)? Yeah, the $10 transaction fee sucks, but you'll likely only do that once or twice a year? Or you might look and see if any of the other discount brokerages can hold the SAGES funds? eg: CIBC Investor Line only charges $6.95/transaction.
RBC Direct can not hold SAGES grants, I tried in 2018 and it won't transfer...
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xgbsSS wrote: Virtual Brokers offers free ETF purchases and supports SAGES.
I just called Virtual Brokers and they do not support SAGES any more :rolleyes:
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xzhvirus wrote: I just called Virtual Brokers and they do not support SAGES any more :rolleyes:
DRAT, sorry my information was old.

@Paxonator I think the best method will be to keep the RBC account and open another Questrade account. Kids can have more than one RESP account provided they don't go over the lifetime max. By doing so, you still keep intact the SAGES grant and any further contributions to Questrade will be earning a better return.
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xgbsSS wrote: DRAT, sorry my information was old.

@Paxonator I think the best method will be to keep the RBC account and open another Questrade account. Kids can have more than one RESP account provided they don't go over the lifetime max. By doing so, you still keep intact the SAGES grant and any further contributions to Questrade will be earning a better return.
Or you can use RBC’s index mutual funds to build your portfolio. Right now I am using RBC Canadian Index Fund (RBF556), RBC U.S. Index Fund (RBF557) and RBC International Index Currency Neutral Fund (RBF559). MER is 0.61% ~ 0.66%. And I am still debating which Bond Index Fund I should use in the future. Any suggestions?

Canadian Couch Potato suggest the following portfolio with MER 0.69% :
Index Fund (Series A) Allocation MER
RBC Canadian Index Fund 20% 0.66%
RBC U.S. Index Fund 20% 0.66%
RBC International Index Currency Neutral Fund 20% 0.61%
RBC Canadian Bond Index Fund 40% 0.76%
100% 0.69%
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xzhvirus wrote: Or you can use RBC’s index mutual funds to build your portfolio. Right now I am using RBC Canadian Index Fund (RBF556), RBC U.S. Index Fund (RBF557) and RBC International Index Currency Neutral Fund (RBF559). MER is 0.61% ~ 0.66%. And I am still debating which Bond Index Fund I should use in the future. Any suggestions?

Canadian Couch Potato suggest the following portfolio with MER 0.69% :
Index Fund (Series A) Allocation MER
RBC Canadian Index Fund 20% 0.66%
RBC U.S. Index Fund 20% 0.66%
RBC International Index Currency Neutral Fund 20% 0.61%
RBC Canadian Bond Index Fund 40% 0.76%
100% 0.69%
Or you can switch to RBC Direct Investing and use TD e-Series as well.
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xgbsSS wrote: Or you can switch to RBC Direct Investing and use TD e-Series as well.
RBC DI can not hold SAGES. For TD bank, they only support SAGES for GIC products if I remember correctly : (
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xzhvirus wrote: RBC DI can not hold SAGES. For TD bank, they only support SAGES for GIC products if I remember correctly : (
You can transfer the main account funds to RBC DI Investing, keep the original RBC accounts with SAGES grant and have a seemless transfer. This still means opening two accounts but probably less time for transfers as well as having most of the funds within somewhat the same interface.
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franklin777 wrote: https://www.canada.ca/en/employment-soc ... -list.html

Check it out the RESP promoters. Don’t think any Direct investment acct support SAGES.

U can try to switch funds within RBC Investment Inc. for example, index funds.
Virtual Brokers under BBS securities did, but because the grant is no longer offered, my guess is support for new accounts is probably no longer offered.
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