RRSPs: transferring/withdrawing money

[d_jedi]

Wondering how this works.. say I have an RRSP with one financial institution - but then I want to move some/all of my money to another. (I'm thinking of going the very simple route this year - open a PCF RRSP savings account.. not the best interest rate, but higher than banks "daily interest savings account" RRSP accounts, and no need to think about mutual funds/stocks/risk/etc.. )

Are there any charges (from the banks involved) or taxes (from the gov't for withdrawing $$) to be paid?

[e909]

they usually charge $25

[asdfvcx]

If you do a transfer the government takes no taxes. But you just can't take money out of one account and place it in another, you do have to fill out the transfer paperwork, or else you will have problems.

And the bank that you are transferring out of will usually charge a fee. (It's quite a bit of paperwork on their part to do a transfer, and since you are leaving them, why wouldn't they charge you.)

The fees vary. If you are transferring a large enough amount, the bank receiving it might pay the fee for you. But if you are just talking a couple of thousand dollars in a savings account, I wouldn't expect it. And the bank receiving the transfer should be able to help you out with the paperwork you need to fill out.

[Kinki]

who initiates the transfer? the receiving bank?

[ns_guy]

You will need to go to the sending bank and request them to help you fill out a T2033. This consists of receiving FI information, sending FI information, details of the transfer, types or accounts, what to invest the money in etc. You will keep one copy of your records, one will be kept by the "sending" bank and the other will be sent to the "receiving" bank. You will need the account at the receiving bank to be open (with an account number) before you do the T2033.

[Thalo]

You can go to either the receiving or the sending bank. Usually it's the receiving bank that sends the T2033 to the sending bank, but I guess you can do it ns_guy's way too. Just don't expect the best level of customer service at the sending bank. :razz:

[pitz]

Yeah no kidding; I transferred the proceeds of a matured GIC from a trust company (ironically, one that TD purchased while the transfer was underway) to a TD mutual funds account.

The trust company's headquarters (and processing), and the corresponding department at TD were physically located in the same building, at the same address in Toronto.

I have to admit, I was pretty livid on the phone to the clowns involved, after 3 months of delays and lost interest. This was when the TSX was putting on 2 or 3% per month too.

[MoreFrugalThanYou]

Yeah no kidding; I transferred the proceeds of a matured GIC from a trust company (ironically, one that TD purchased while the transfer was underway) to a TD mutual funds account.

The trust company's headquarters (and processing), and the corresponding department at TD were physically located in the same building, at the same address in Toronto.

I have to admit, I was pretty livid on the phone to the clowns involved, after 3 months of delays and lost interest. This was when the TSX was putting on 2 or 3% per month too.

Same situation with me. HSBC matured GIC -> TD mutual fund account.
After running around between the 2 banks and each other playing the blame game, HSBC finally released the funds 1.5 months later. What I noticed is that no fee was deducted off the transferred amount, so the good thing that came out of it was they ate the fees, but like you I wanted that money sooner for tsx purposes. :cheesygri

[TopTaxGuy]

You can transfer your RRSP between institutions. The institution you are moving to will start the paperwork for you. The sending institution may charge you a fee. It can be as low as $25 but it can be quite high at times. Ask your net financial institution what their policy is on paying this fee for you.

A “watch for” I strongly recommend is to watch the “In Kind” option on the transfer form. If you select “In Kind” it means your portfolio gets moved. But many FI’s and brokers ignore this and sell out your account and move the cash. If the market moves up dramatically you’ve lost out. If this happens to you contact the original FI and ask to talk to the branch manager and ask them to make you whole.

[Thalo]

Yeah no kidding; I transferred the proceeds of a matured GIC from a trust company (ironically, one that TD purchased while the transfer was underway) to a TD mutual funds account.

The trust company's headquarters (and processing), and the corresponding department at TD were physically located in the same building, at the same address in Toronto.

I have to admit, I was pretty livid on the phone to the clowns involved, after 3 months of delays and lost interest. This was when the TSX was putting on 2 or 3% per month too.


I assume you're referring to 77 Bloor Street, the bastion of bureaucracy?

[jojochiu]

who initiates the transfer? the receiving bank?

if you are transferring out...the institution you are currently with will initiate
if you are transferring in...the institution that is receiving will initiate