RBC GIC for RRSP | GIC discussions | Discussion forum

I believe you have, legally, a 10 day window once the GIC expires in which to give instructions. Not sure about the number of days but pretty sure you can reverse the reinvestment. I would go into a branch if possible and ask them to put the money into an RSP savings account immediately. That protects you from the reinvestment until you decide what to do.

I have found RBC very bad to deal with in recent months - absolutely atrocious. If it were me, I would definitely take my investments out of there.

If you do decide to transfer out, there will almost certainly be a charge at the RBC end for each transfer. Pay it and get rid of them. You will make it up in better rates elsewhere. If you move it to a financial institution that also charges a transfer fee, they will almost certainly agree to reimburse some or all of the RBC fee, but you have to ask for this. It's not automatic.

I would move it to Oaken, Peoples Trust or Hubert, none of which charge a transfer out fee at this time, and swallow the fee. I can guarantee that RBC is not going to pay you a competitive rate, and probably never will.

Do they charge for that (I mean to cancel the reinvestment, within 10 days as you suggested)?

There should be no charge to collapse a GIC within 10 days.

The call should have been recorded at their end. They failed to call you back and confirm if you wanted the the whopping .8% rate. So if they DID call you, you were going to say.....please move the value of my matured RRSP GIC to my RRSP savings account......right?

Take a look at the GIC and HISA rates here by clicking the appropriate tab. But confirm at the FIs website before you jump. Also if you transfer out to say Oaken or?? ask if they will hold the rate to the current one or better as the transfer can take a week or so BUT some FIs deliberately drag their feet and the “transfer to” FI will pursue on your behalf.

Once you start using the FIs listed here you will no longer invest with the big 5.

Loonie said
I agree with GICInvestor.

Just tell them, if you must, that you want to put it in RSP savings because you need more time to decide your next step. They will do that for you. They will also then try to sell you something. They will likely try to sell you either their house-brand mutual funds or their index-linked or market-linked GICs. They will likely lie when they tell you about these and will tell you that you will make more money that way. Just tell them, again, that you will think about it. That's all you have to do at RBC. If they keep bugging you, just keep telling them you are thinking. Do not tell them WHAT you are thinking about as that will just encourage them to give their sales pitch again and, honestly, it's none of their business since they are not obligated to give you the best advice, only to sell products. The main thing is to make sure the money gets into savings.

When you have decided where you want to move that money to, all your dealings henceforward should be with that new bank.
Let's say you choose Oaken. You will sign up with Oaken and send them a transfer form which they will provide. You send that completed form back to Oaken, not to RBC. Oaken will take it from there and will get the money from RBC for you and deposit it into whatever GIC you have chosen. It's possible you will get one more phone call from RBC trying to get you to change your mind. At this point tell them you have made up your mind and to follow Oaken's instructions and say goodbye (and good riddance).
Meanwhile, keep in touch with Oaken to ensure the transfer takes place. Sometimes there can be hiccups, so you need to keep an eye on the process.  

Thanks and well done Loonie!!!

Also here is a timely article about RRSP from Oaken

Also I always ask to have GIC's mature into a savings account once first purchased. I try to do using the Chat offered by the FI or email and I keep that as proof. Who knows what money you might need in 1 2 3 4 or 5 year and the greedy old FI just wants to "greedily" keep renewing it. The only exception to this, is Oaken for RRSP, RRIF and TFSA as they do not have an associated savings account for those registered products. But Oaken is easy to phone and they do send you an advice of upcoming maturity by mail AND you can update online (not sure for registered though).

If you do have a GIC at a credit union (other than Hubert) you can see the message change on the GIC account to let you know it will not renew at maturity. As I keep a paper file of all my GICs I now wait till the message changes and then print the copy for my files.

Oaken will not reimburse the RBC, whatever it may be, because they themselves do not charge a fee. You'd have to swallow it. You need to ask RBC what the fee is. It is probably to be found online somewhere. Typically, the fee is between $50 and $100 for this kind of account.

I have occasionally had minor problems with Oaken, but there are problems with every financial institution and i find Oaken generally good to deal with and prefer them over most others.

If you live in a city where Oaken has a retail outlet, I recommend you go in person. This is what I do, so I know it's done right and can ask questions as I go. i've never dealt with them online so can't answer any questions about that.

Here are the things I would watch out for at Oaken. Some of these apply to any transfer.

Make sure the forms to open accounts and for the transfer are completely accurate. Take the time to actually read them before you sign them if in office. Take screen shots if online.
If you are married or common-law, make sure you designate your spouse as successor beneficiary; if not partnered, you may choose to designate someone else as beneficiary but it will not pass to them as registered funds.
If the transfer has not taken place within 3 weeks, call Oaken and see where the delay is and follow up. Oaken is normally very speedy. I once had a problem where Oaken had sent the transfer on to the relinquishing bank but at the wrong address, so they had to send it again, but this re-send only happened because I followed up. I once had a problem with TD where they were inordinately slow about sending the RSP onwards. Ultimately I was able to convince TD to not charge the transfer fee as they had cost me money and time while hanging onto my money at some abysmal savings rate. Nobody should have to pay a service fee for such dreadful service. Oaken manages to provide excellent transfer service for no fee. Oaken once transferred an RIF out for me which arrived within 3 business days of me filing the request at the receiving institution. They can all do it if they want to but many don't care.

Be aware that Oaken, perhaps uniquely, does not offer an RSP savings account. Thus, when your Oaken RSP GIC matures, you will have to be on the ball and know if you want to renew it or transfer it and have made arrangements BEFORE it matures.

As Loonie said

If you move it to a financial institution that also charges a transfer fee, they will almost certainly agree to reimburse some or all of the RBC fee, but you have to ask for this. It's not automatic.

  

To clarify, the only financial institutions that are likely to reimburse you are ones that also charge you. It is possible that Tangerine might reimburse you but since they only charge $50 to transfer out an RRSP, I suspect that $50 is the most that they would possibly reimburse. It may also depend on how much you are transferring in. Regardless, you would need to phone them to find out.

All of the transfers out of BigBank RSPs I've made in the past few years attracted a fee of $135+HST per transfer. Perhaps the fee to transfer out a "GIC only" type account is less, I don't know.

My point being, if you get charged any less than $135, you're doing well