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Email this5:01 am
I'm interested in the TFSA at CDF for an emergency account. If I'm just doing the TFSA (no savings or chequing) does anybody know how fast I could get the money out in case of emergency?
10:05 am
What amount are you talking about? $100, $1000, $10000, $100000?
12:14 pm
Joe Joe said:
What amount are you talking about? $100, $1000, $10000, $100000?
If there are different rules for different tiers then that would be part of the answer that I'm looking for.
8:33 pm
Dear Fred,
Okay, I have a TFSA account [started banking with them DEC 2010] at CDF.
How fast could you get the money in case of emergency....
Hmnn. Okay, I say, it will take minutes. This happened in my case:
I needed $500 pronto.
Time Elapsed; Description
(1) minute; I accessed CDF online banking website.
(1) minute; Transferred $500 from CDF TFSA to CDF Saving account
(15) minutes; Went out of my place to a nearest ABM machine (Exchange Network member)
(2) minutes; Withdraw "emergency" money from savings account
-----------------------------
TOTAL TIME; Approx 19 minutes!
Now, that's for small amount of money. For large sum of money; Im pretty sure it would
be different. Note that, we are talking about TFSA here. And right now, the maximum
cash anyone can park for a TFSA account is $15,000. So let's say you have $10,000 in your TFSA. You had an emergency (accident/blooper happens) and you needed that money.
Okay, Most Credit Union ABM's have $500 or $800 dollar maximum allowed withdrawal for a day. So you wont be able to withdraw that money all in one. Assuming its $800/day (like Coast Capital Credit Union ABM) then you'll need 13 days! (That's withdrawing $800 everyday. LOL) So you opted to contact CDF instead to just mail you a check worth $10,000. This will probably take 2 weeks before you'll have your check.
8:50 pm
Hi Fred,
Oh dude, I forgot to take notice of your assumption:
"If I'm just doing the TFSA (no savings or chequing)"...
My answer above is fitted with those who have an existing TFSA + 1 more account (in my case, a savings account); So if you will just bank with them via the "snail mail" correspondence; I simply don't know the approx. time frame; Maybe 2 weeks at least before you can get your emergency fund? [You know, signing the withdrawal form, then mailing it to CDF, then waiting for them to mail back your check] ...
7:50 am
Thanks msl - is there any way to transfer out electronically?
8:44 am
From the web page it seems like savings account is non-fee. Is that correct?
5:24 pm
Fred said:
From the web page it seems like savings account is non-fee. Is that correct?
Technically, for the TFSA they charge you $50 when you close the account, or move the funds to another institution.
6:50 pm
I have two TFSA accounts.. One with a discount brokerage (Questrade) and another with a Manitoba Credit Union (Hubert) one is emergency the other investments.. Registered transfers from one TFSA account to another is fine and shouldn't cause any tax issues.. Jsut don't redeem it and then put it back.. Unless its the end of the year (we are close right now).. Look at the fees of all the banks etc you use.. If your looking for GICs give Hubert a look.. But I don't have a lot of faith with the recent rate cuts on HISA/TFSA accounts.. See ya..
9:09 pm
Fred said:
Thanks msl – is there any way to transfer out electronically?
You're welcome Fred, about your question above, I haven't done it yet.
So right now, I don't know the answer…
[[also for CDF's savings account; non-fee for ??? example monthly bank charge payment?
They dont charge any monthly fee. You're allowed (1) free withdrawal only per month, otherwise they charge you $1.50 i think. I haven't done more than one withdrawal per month as of now. Deposits are free of course. Just make sure you use a ABM that is part of the "Exchange Network." If you're talking about "guest" comment about TFSAs, he is right so don't close you're account so they don't ding with that $50 closing fee. Like me, I already withdraw my TFSA from coast capital=1.20% interest as i will move it to CDF=3.00%next year but i did not withdraw all the money. i left $323.xx on my coast capital TFSA haha, so technically i did not close it yet!!! ]]
5:31 pm
June 14, 2012
Offline
msl said:
Dear Fred,
Okay, I have a TFSA account [started banking with them DEC 2010] at CDF.
How fast could you get the money in case of emergency….
Hmnn. Okay, I say, it will take minutes. This happened in my case:
I needed $500 pronto.
Time Elapsed; Description
(1) minute; I accessed CDF online banking website.
(1) minute; Transferred $500 from CDF TFSA to CDF Saving account
(15) minutes; Went out of my place to a nearest ABM machine (Exchange Network member)
(2) minutes; Withdraw "emergency" money from savings account
—————————–
TOTAL TIME; Approx 19 minutes!Now, that's for small amount of money. For large sum of money; Im pretty sure it would
be different. Note that, we are talking about TFSA here. And right now, the maximum
cash anyone can park for a TFSA account is $15,000. So let's say you have $10,000 in your TFSA. You had an emergency (accident/blooper happens) and you needed that money.
Okay, Most Credit Union ABM's have $500 or $800 dollar maximum allowed withdrawal for a day. So you wont be able to withdraw that money all in one. Assuming its $800/day (like Coast Capital Credit Union ABM) then you'll need 13 days! (That's withdrawing $800 everyday. LOL) So you opted to contact CDF instead to just mail you a check worth $10,000. This will probably take 2 weeks before you'll have your check.
Confirming what MSL wrote, that's exactly how I'd go about accessing funds from a Canadian Direct Financial account quickly.
I suspect you could use any Canadian bank machines but would be subject to the usual "out of network" ATM fees if you did. ($2 or so? I never do this so I'm not sure)
Also, I know some ATMs have a $1,000/day limit so you could conceivably withdraw $1,000 at a time if needed.
Other ways you could move money out of your CDF accounts:
1) Interac online electronic funds transfer ("EFT", not to be confused with an exchange traded fund "ETF"!) – $1.50 fee for this. You can send to anyone in Canada with an online bank account and an email address or send to "yourself" and then re-deposit into an account at another institution. I believe there's a $1,500 per transaction limit to this.
2) Direct funds transfer to an external account, assuming you've filled out the forms and CDF has accepted them (this is similar to the ETF above but there wouldn't be a fee, provided you only do this once per month) CDF indicates turnaround is two business days.
In either of the above cases, of course, if you needed "cash" (why?) you'd need to visit an ATM or a bank teller.
Please write your comments in the forum.