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Email this8:05 am
April 8, 2020
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I've had my RRIF with a discount broker for many years. Today with their GIC rates approx 1% for two years, I was planning to transfer more than $100k to Oaken (or some similar FI).
Oaken told me to complete an application and T2033 and they would handle the transfer. Discount broker tells me they charge $150 for each transfer out (I was planning on doing the transfers in two separate transactions).
I'd be interested in hearing from anyone that has done this in the past:
1) Any way of avoiding $150 transaction fee?
2) Is Oaken likely to reimburse me?
3) Any discount brokers around that pay interest rates competitive to Oaken?
4) Any general suggestions?
8:29 am
September 11, 2013
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Whenever you're transferring accounts, money, business to an institution and the sending institution has a fee it's a good idea to tell the receiving institution you'd like them to reimburse you for any costs from the other end. Do it while they think you're still considering whether or not to do business with them. If they want your business they often will.
1:00 am
October 21, 2013
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Oaken will not reimburse you.
The institutions that will reimburse you are those which, themselves, charge a transfer fee, which Oaken does not.
The amount they are willing to reimburse will vary , but I don't know of any that will reimburse more than $100 at the moment.
There is basically no way of avoiding the fee unless you are transferring to an FI that charges a fee. However, keep a close watch on how long the transfer takes. A friend managed to get the fee rescinded a few months ago at TDDI (pre-covid) because it took too long. Be forewarned that it is not unusual for FIs to act as if transferring out was the most exotic idea they ever heard of, almost without precedent!
I assume you must be cashing two GICs at the brokerage and plan to transfer both to Oaken?
If so, you might be able to circumvent the double fee by first cashing the first GIC into a brokerage savings account; then add the second one when it matures; then transfer both as one lump sum. Oaken should be able to divide up the money again upon receipt. Oaken is very efficient with transfers, so, if you encounter a delay,it is most likely on the brokerage end, but each will blame the other.
You'll need to do a little math to see what will work best for you.
The FIs that don't charge a transfer fee are few. Oaken, Hubert, possibly Achieva (not sure), and Peoples, but Peoples doesn't offer RIFs. i think Oaken and Hubert are both pretty good options. The disadvantage of Oaken is that they don't offer registered savings plans, which makes it awkward at maturity as you must either renew or transfer immediately. Hubert is a credit union in MB. Some people prefer to deal with FIs in their own province .
Whatever you choose, be sure to sign for a beneficiary at the new FI. .
8:56 am
April 26, 2019
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I just did a no fee TFSA transfer from Oaken to Peoples Trust. The GIC at Oaken matured June 30 and money was at PT on July 2. Wow QUICK. We did send the transfer in to PT 5 weeks in advance. Not complaining....I did the transfer so I should be watching.....it would be nice to be advised that the funds were there.
For RRIF Hubert is best and while I don’t have RRIF at Accelerate I would consider them too. If you can self manage funds to be in your RRIF savings at Accelerate you will be able to control your mandatory withdrawals and extra withdrawals from there.
Oaken is the WORST and a big part of not being able to self control extra withdrawals is because they do not have RRIF savings accounts. I did find a loop hole to self control withdrawals at Oaken and the key to that is to have your RRIF GICs laddered in amounts close to your estimated needs ie. you may have to have 2 GICs maturing every year...one for withdrawals and one to reinvest. Or you can have a 1, 2, 3, and 4 year GIC for your estimated needs with the larger amount in a 5 year GIC. And be prepared to transfer that RRIF out at maturity AND before your agreed upon date of mandatory annual payment. If you have all your RRIF money in one 5 year GIC at Oaken....you have only a couple of options.
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