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Email this1:42 am
April 9, 2013
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FYI
You might be interested to know that reg'd transfers out of EQ can be very lengthy & rather costly, depending on the amount transferred-out.
I initiated a transfer-out in May, which I know for a fact was sent to them within days, but they took a month before taking any steps towards completing by debiting my acc't, however, they waited nearly 4 wks before bothering to forward a cheque to the receiving FI. You heard it, they transfer your funds to their suspense acc't sans interet to you & keep them there for ~4 wks before forwarding. Luckily for me, it was a small amt & I didn't lose much, but if you're considering transferring-out a large amt, you might want to think twice about it or be prepared to duke it out & demand compensation.
You might say, "what do you expect for free transfers", to which I say, for comparison, I simultaneously initiated an identical transfer from Peoples Tr to the same FI & Peoples COMPLETED the transfer within a week, i.e. debited my acc't & issued the cheque the next day, also N/C...the less impressive part was the receiving FI took 3 wks (including snail mail) to credit my acc't.
2:27 am
August 1, 2015
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It's EQ Bank. I'm not surprised. I keep hoping that things will improve with them such that if you go beyond simple things like depositing money stuff won't go awry, but it doesn't seem to get better.
I just don't think their priorities align with what I believe they should be. Right now their main priority seems to be to be appealing to get more deposits and anything else is secondary.
(I still can't delete goals from my accounts, and since they took away messaging I'm not about to call to try to get that fixed when they'll just have me try the same things a few times and then punt it elsewhere)
7:24 am
December 7, 2011
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My experience with EQ Bank - 5 weeks (34 days) and absolutely no compensation, when I demanded. That was very bad experience!
Before I completed 9 RRSP's and TFSA's transfers from other banks/credit unions, time was from 4 days to 11 days.
8:11 am
April 14, 2021
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Thanks for the heads-up. I sent a transfer from CTire to EQ for an TFSA a little while ago. Hope that it does not encounter the same lengthy delay, but at least am prepared for such. 🙁
For future EQ TFSA transfers, I will just have to plan on moving the money out of TFSA before the end of the year and then do a normal bank transfer elsewhere and re-deposit to my TFSA upon arrival, in the new year.
12:34 pm
November 8, 2018
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Is this about registered funds transfers: RRPS, TFSA?
The process described by OP seem to be somewhat different from what I see when moving money to/from EQ Savings account.
1:01 pm
December 7, 2011
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Alexandre said
Is this about registered funds transfers: RRPS, TFSA?
I did TFSA.
My EQ process:
- EQ received signed form from requesting bank/credit union.
- the same day or next day, no later, EQ closed my TFSA with note "Transfer out" and forwarded my file to EQ "Registered Department" (only one person works in that "department" and doing all registered transfer out's), where my file was in "cue" 26 days, waiting it's turn to be processed and issuing cheque.
- 27 days later that cheque was issued and mailed out via Canada Post registered mail.
1:16 pm
February 24, 2015
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It should not be a surprise that EQ or any other FI that offers "free transfers", then for weeks your money is in limbo. We should not be playing this game. If you really want to invest your TFSA in savings accounts, then cash it in and reinvest next January.
1:29 pm
September 29, 2017
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2of3aintbad said
It should not be a surprise that EQ or any other FI that offers "free transfers", then for weeks your money is in limbo. We should not be playing this game. If you really want to invest your TFSA in savings accounts, then cash it in and reinvest next January.
That works fine if you have contribution room BUT keep in mind that interest earned, withdrawn and put back in takes away from your contribution room. And if you have no contribution room, that interested loses compounding effect.
So there are trade-offs.
9:41 pm
October 27, 2013
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smayer97 said
That works fine if you have contribution room BUT keep in mind that interest earned, withdrawn and put back in takes away from your contribution room. And if you have no contribution room, that interested loses compounding effect.
So there are trade-offs.
That is not correct. The withdrawal of X$ of funds in December from any TFSA and the re-contribution of X$ of funds to a TFSA in January does not affect contribution room at all.
12:11 am
September 29, 2017
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AltaRed said
That is not correct. The withdrawal of X$ of funds in December from any TFSA and the re-contribution of X$ of funds to a TFSA in January does not affect contribution room at all.
You misunderstand... best with an example.
Let's say your max contribution room is $50,000. Put in $5,000. Earn $100. If you transfer TFSA, you still have overall $45,000 contribution to add to your $5,100, for a total in your TFSA of $50,100.
If instead you pull $5,100 from TFSA, you now can only add $44,900 to add back into your TFSA, for a total of $50,000. So you have lost $100 out of max TFSA, thereby losing the compounding of the interest over time.
12:27 am
April 6, 2013
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If you pull $5,100 from a TFSA, then $5,100 is added to one's TFSA contribution room next year.
Next year, one will have $5,100 + $45,000 = $50,100 of contribution room.
There's actually no maximum contribution room.
If one had turned the $5,000 contribution into $60,000 and withdrawn the $60,000, then one will have $60,000 + $45,000 = $105,000 of TFSA contribution room next year.
9:22 am
September 29, 2017
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From everything I have read, there is a maximum....
First, there is the annual allocation since 2009 for every year one is over the age of majority:
2009 - 2012 $5,000
2013 - 2014 $5,500
2015 $10,000
2016 - 2018 $5,500
2019 - 2021 $6,000
So for someone who qualified since the beginning, their max total contribution room is $75,500 as of 2021. Anyone younger than 31 (at this point) would have a lower max.
So my understanding is that even if you withdrew $80,000 (which includes gains), your max contribution would still be $75,500.
What can you show that supports the idea that gains withdrawn go to add to your max contribution room?
10:20 am
August 1, 2015
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The page at https://www.canada.ca/en/revenue-agency/services/tax/individuals/topics/tax-free-savings-account/contributions.html states how contribution room for a year is calculated, and one of the items is "any withdrawals made from the TFSA in the previous year". It also states that "The maximum amount that you can contribute to your TFSA is limited by your TFSA contribution room." which is not the total of all annual contribution room limits.
11:13 am
September 29, 2017
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I've decided to branch off this discussion into a separate thread because I think it is worthy to explore (and make more readily discoverable), here:
https://www.highinterestsavings.ca/forum/tax-free-savings-accounts/how-is-tfsa-contribution-room-determined-do-all-withdrawals-increase-the-max/#p63957
Please write your comments in the forum.