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Email this2:14 pm
April 27, 2020
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I just pulled a copy of the account fees now that Outlook Financial took over Implicity.
Seeing these I think I'll look into moving my savings to new on line bank, Implicity was no fee.
5:52 pm
December 12, 2009
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Yeah, there were some changes to the fees as the Implicity HISA was merged with the Outlook Financial HISA. Outlook Financial never used to offer unlimited, free Me-to-Me Transfers, but one thing they did add with the merger with the Implicity HISA is allow unlimited, sporadic/ad hoc Me-to-Me Transfers. Scheduled Me-to-Me Transfers are still subject to the 1 free debit per month limitation. As well, pre-authorized debits are no longer unlimited, but you still can use them up to 1 time per month for free.
For me, it's okay, but you just won't want to use it as a "hub" account. Just use it for parking savings, and you'd be fine with 1 free debit per month. As well, they do offer free cheque orders, which Implicity didn't have.
Achieva is slightly better, though, as they will rebate you $1.00 for signing up for e-Statements, so you can effectively have two free debits per month, one of which would incur a $1.00 fee but be offset by the $1.00 e-Statement monthly incentive/rebate. Of course, Achieva does not have the free, sporadic Me-to-Me Transfers, but do have free cheque orders.
Cheers,
Doug
4:15 pm
July 10, 2024
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BEWARE - Outlook Financial (OF) charges a $50 transfer-out fee on TFSAs
It should be noted, Outlook Financial makes a $50 charge to transfer your hard-earned TFSAs to another Canadian financial institution.
This should be abolished & made illegal in Canada, like in the UK. Other financial institutions such as EQ & Oaken, for example, do not make such a charge, so why does OF ?
This so-called $50 'admin.' charge is counter to the whole ethos why the Canadian Government established the TFSA system in the first place; namely, for individuals to SAVE their own, hard-earned money in a tax-free ‘wrapper’, with the capital growing year-on-year until needed, NOT for disreputable Canadian financial institutions to feather their own nests’ at the expense of diligent savers. TFSA transfers between Canadian financial institutions should be FREE, in a free-market banking economy.
This $50 fee seriously impedes savers’ ability to shop around to get the best interest rates on the market when their TFSA GIC term deposit matures, for example. The current scenario locks individuals into a specific financial institution & prevents a free-market banking system in Canada. Furthermore, it actually becomes uneconomic & impossible for savers to transfer funds between institutions if they only have a nominal amount in their TFSA (<$50). There is little hope of ever accumulating sufficient interest to pay this fee. Moreover, after 2 years, do these same TFSAs then become subject to ‘dormancy’ charge ?
This $50 fee seems totally counter to OF's Mission Statement & Core Values, namely,
Mission:
Act, "as a socially responsible co-operative, providing financial services for the betterment of members, employees & communities."
Values:
Act with, "Integrity - consistently honest, fair, respectful & compassionate in all our relations & do the right thing for the right reason.
Accountability - take responsibility for the financial, social, environmental & economic impacts of our decisions & actions, & disclose our performance in a transparent manner"
Other financial institutions don't charge this fee because any such nominal transfer costs are easily offset by the profit margin created by the spread between the customer borrowing & savings interest rates. This is typically how banks the world over generate their profits, not from hidden standing charges.
OF needs to abolish this $50 transfer-out fee.
I have written to the following & would strongly urge you to also lobby & complain in order to get positive change & a fit-for-purpose TFSA system at OF.
Federal
The Honourable Chrystia Freeland - Deputy PM & Minister of Finance,
Your MP
The Honourable Jonathan Wilkinson - (North Vancouver), Minister of Energy & Natural Resources (my MP),
The Financial Ombudsman of Canada
Provincial
The Honourable Adrien Sala, MLA - Minister of Finance, Manitoba
The Financial Ombudsman of Banking, Finance & Credit Unions, Manitoba
Assiniboine Credit Union (ACU) / Outlook Financial (OF)
Mr. Kevin Sitka, President & CEO
All Board members & Executive
4:19 am
November 18, 2017
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Yes, it's anti-competitive. That's why almost all financial institutions (Outlook and Peoples being among the exceptions) do it. Why do dogs lick themselves? And why those transfer-out fees will continue to rise.
RetirEd
6:26 am
October 27, 2013
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I don't understand the hostility to transfer out fees. It would seem only fair that FIs should be charging 'reasonable' transfer out fees, especially for registered accounts, to cover the administrative costs of people leaving an entity. It seems unreasonable to expect shareholders/members of banks/CUs to shoulder the costs of those leaving the FI. $50 would barely cover an 'all in' hour's worth of A&G.
The other options are: 11) not to transfer out in the first place, and/or 2) get the receiving institution to cover the transfer cost (many do just that) as a cost of doing business to attract accounts.
6:26 am
February 7, 2019
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I believe free TFSA transfers are the exception.
But, in my experience, FI's receiving TFSA transfers will compensate you for the sending FI's transfer charges.
| CGO |
7:35 am
March 14, 2023
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AltaRed said
The other options are: 11) not to transfer out in the first place, and/or 2) get the receiving institution to cover the transfer cost (many do just that) as a cost of doing business to attract accounts.
A third option is withdraw and recontribute elsewhere (the following year, if maxed out in the current year). Yes, some shielded income may end up being taxed, but if that's a concern then Option 2 would be the way to go.
8:19 am
October 27, 2013
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I suspect most FIs would have wished TFSAs had never been foisted on them by Ottawa. RRSPs were doing quite nicely by themselves.
The costs of administering TFSAs with their withdrawal and re-contribution mechanisms is not in shareholder/member best interests. FIs are not charities, i.e. they have to cover their A&G. Nor did Ottawa ever say these accounts should be administered at no cost.
8:35 am
February 7, 2019
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AltaRed said
I suspect most FIs would have wished TFSAs had never been foisted on them by Ottawa. RRSPs were doing quite nicely by themselves.The costs of administering TFSAs with their withdrawal and re-contribution mechanisms is not in shareholder/member best interests. FIs are not charities, i.e. they have to cover their A&G. Nor did Ottawa ever say these accounts should be administered at no cost.
I sure would like to know what the rationale was for the contribution/withdrawal complications...
| CGO |
9:15 am
October 27, 2013
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Software recording the transactions, maintenance of same, account holder and CRA reporting all have a cost associated with them, never mind additional CSRs to handle physical interactions with account holders with their complaints and questions (see post #3 as an example). It took awhile for FIs to make TFSAs available for obvious reasons just like FHSAs now are slow to be made available. There is not enough money in it.
There is a reason some discount brokerages in particular have account administration fees for account sizes less than certain threshold values, e.g. $15k or $25k.
The point remains that no one should really complain about reasonable A&G fees, and especially transfer out fees for leaving the entity.
5:06 am
November 18, 2017
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cgouimet: For CRA to administer the millions of TFSA accounts, they have to field and track all the financial institutions' movements of cash into and out of registered status, not to mention things like recontributions and "in kind" complications. And track down all the inevitable errors and complaints.
RetirEd
6:38 am
February 7, 2019
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RetirEd said
cgouimet: For CRA to administer the millions of TFSA accounts, they have to field and track all the financial institutions' movements of cash into and out of registered status, not to mention things like recontributions and "in kind" complications. And track down all the inevitable errors and complaints.
They also do that for RSP's without the same complication of withdrawals that can't be "reversed" until the following year.
| CGO |
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