TFSA Transfers for Investment vs Savings

indecisiveconsultant wrote: ↑ I noticed that banks offer two different fees for transferring a registered account out to another bank. For example, let's look at Tangerine:

https://www.tangerine.ca/file_source/fb ... hedule.pdf
https://www.tangerine.ca/file_source/fb ... ule-En.pdf

They are charging $50 to transfer out a Registered Savings Account vs $125 to transfer a Registered Investment Fund Account. In the case of Tangerine, it's just their mutual funds.

My question is why would you pay $125 when you can just sell the mutual fund which you were going to do anyways as Tangerine funds are exclusive to Tangerine, transfer to a TFSA Registered Savings within Tangerine, then initiate the transfer to another bank for $50, and then just buy the mutual fund or stocks you want on your own at your new bank?

Am I missing something? I know that RBC also has separate fees as well ($50 and $135), but since RBC has a brokerage, it would be different because you can do in asset transfers to other brokerages. I think Tangerine is the best example to use for my question, since they only offer mutual funds, and these are exclusive to Tangerine only.

When would someone choose the $125 over the $50? Please let me know if I'm understanding this incorrectly.

TorontoTheo wrote: ↑ The way I see it is that it’s just a deterrent from switching via a transfer. And the transfer is much more than a simple wire as there’s forms that have to be completed for CRA.. the bank you are switching to normally covers the fee’s to transfer it anyway so really the fee isn’t anything to worry about. I’m not in banking though just my opinion based on switching registered accounts between banks before