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Email this5:39 am
Hello every1,
I was wondering if anybody else had experience with CDF... According to the fee page there are charges for transferring TFSA as well as for EFT?
https://www.canadiandirectfinancial.com/Personal/BecomingACustomer/ServiceFees/
Anybody have any experience here?
8:26 am
Fee for transferring TFSA is different story than fees for everyday activities. You can avoid it by withdrawing instead of transferring.
For ETF, deposit is free but withdrawing is free for only one per month. Actually one free withdrawal (any type) per month.
9:11 am
If you have already made your full TFSA contribution this year, you can not withdraw the funds and re-deposit them in the same year --- this will be viewed as an over contribution by CRA and you will be penalized. You will need to wait until next year.
Transferring the TFSA is the safest approach, however, many institutions do charge a transfer fee so you are best served to find-out, who charges what and for how much. Achieva & ING do not have any transfer fees (coming or going) for RSPs or TFSAs.
1:51 pm
Thanks for the info.. We should have a list of no fee transfers.. Or atleast a column in the rate chart.. People's Trust doesn't charge any fees for TFSA transfer wise..
4:58 pm
what i did say i put in 15000 for three years i took out the money december 05 2012 then transfer to savings already have your direct invest then send the money no transfer fees you get charged when you transfer tfsa to tfsa
10:45 am
June 14, 2012
Offline
Most institutions charge a fee to transfer a registered account to another institution; you're basically taking business away from them so they're going to discourage this.
CDF doesn't charge a fee for deposits into their KeyReach TFSA. You can make as many of those as you want. (make sure you don't exceed the Canada Revenue Agency $20,000 limit in 2012 or you'll incur penalties from them)
On the other side of the equation, you can transfer funds OUT of your CDF KeyReach TFSA as many times as you like without incurring a fee, as long as it's to another CDF account.
You get one free external transaction per month with CDF KeyReach TFSA or KeyRate Savings account (eg. ATM withdrawal, electronic funds transfer out, point of sale debit payment etc). If you exceed that free one, there'll be a fee.
If you want to transfer the entire contents of your CDF TFSA to another institution without incurring fees, you could wait until December, withdraw the entire amount as cash and wait until the new year when your contribution room resets and redeposit at the other institution.
1:34 pm
CJOttawa said:
You get one free external transaction per month with CDF KeyReach TFSA or KeyRate Savings account (eg. ATM withdrawal, electronic funds transfer out, point of sale debit payment etc). If you exceed that free one, there'll be a fee.
I sent them an email last year asking this: "Are all types of withdrawals from the KeyReach TFSA free (excluding the $50 TFSA transfer fee)?"
Their response was this: "Apart from the $50 fee for transferring or closing your TFSA account in less than a year there are no other withdrawal fees."
Unless I'm misinterpreting their response, it's my understanding that all withdrawals from the TFSA are free no matter how many you initiate per month. The one free external withdrawal per month is true with the Savings account, of course, but the website doesn't mention that this also applies to the TFSA. Has anyone else contacted them directly and received the same response that I did?
10:33 am
^ ok, just because I'm obsessive compulsive, I emailed them again and got this reply: "All withdrawals back to your chequing account from the TFSA are free."
7:55 am
June 14, 2012
Offline
Careful. Transfers to your CDF chequing account are free, as are all other transfers between CDF accounts.
The statement, "All withdrawals back to your chequing account from the TFSA are free" may be referring to a CDF chequing account, not an external one.
11:15 am
^ Good point. I sent yet another email and got this reply: "We don’t charge for TFSA withdrawals back to external chequing accounts."
So with the three email replies that I received, it's quite unambiguous now (although the first reply from them was probably good enough).
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