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Transfers usually incur costs (usually $50 or more) from the outbound folks as they don't want to lose the account. This isn't really to cover costs --it's more a penalty for leaving them, in my opinion.

You can easily do the math to see if the potentially lost interest less the fee is more or less than $0.00.

I'd put new money (if available room) in the new institution now and wait till December, say the 15th, to pull the existing TFSA money. Quietly pull it. don't tell them you are leaving. just zero balance it. If asked, tell them you are using the money for a holiday, house purchase, drug purchase, gambling debts, divorce, anything -- it's none of their business, even if they make you think it is.

Then January 2nd, plow it into your newly chosen institution.

GS

GS said

Transfers usually incur costs (usually $50 or more) from the outbound folks as they don't want to lose the account. This isn't really to cover costs --it's more a penalty for leaving them, in my opinion.

You can easily do the math to see if the potentially lost interest less the fee is more or less than $0.00.

I'd put new money (if available room) in the new institution now and wait till December, say the 15th, to pull the existing TFSA money. Quietly pull it. don't tell them you are leaving. just zero balance it. If asked, tell them you are using the money for a holiday, house purchase, drug purchase, gambling debts, divorce, anything -- it's none of their business, even if they make you think it is.

Then January 2nd, plow it into your newly chosen institution.

GS

Greg's strategy is a great one, when you're using TFSA for GICs (maturing 1 year or less) or savings account and one I endorse. If your TFSA is invested in GICs maturing more than 1 year out, you can should try your hand at negotiating with the new institution directly, to see if they'll cover all or part of the "transfer fees" from the "delivering institution". They may just do that then, again, if it's April and x institution has a great rate, do the math and if the increase in interest earnings will deliver a return that exceeds the "transfer fee" you'd have to pay, then may still make sense (even if the "receiving institution" won't budge on not wanting to cover "transfer fees").

If transferring mutual funds (or stocks/bonds) from either a bank owned-mutual fund dealer, investment dealer or other self-directed brokerage, best to transfer to a bank-owned self-directed brokerage and they will all cover transfer fees anywhere from $125-150 per plan generally with a "minimum market value" of between $15,000-$25,000 (some may even calculate that "minimum market value" on the basis of all your plans you're transferring, which is better).

Similarly, if you decide you want out of self-directed investing and want to go back to mutual funds, to avoid a "transfer out fee", generally most bank-owned self-directed brokerages won't charge a "transfer out fee" to a bank-owned mutual fund dealer. You could, then, transfer from a bank-owned mutual fund dealer to the bank directly if you want to go back to GICs/savings accounts, since bank-owned mutual fund dealers don't charge "transfer out fees" for transfers between company subsidiaries. Nice trick, eh?

As for ING DIRECT Canada, I believe they do charge a fee for "transfer outs", but they also won't reimburse any "transfer out" from the "delivering institution" fees (I tried to negotiate already!).

Cheers,
Doug