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Email this8:09 pm
November 15, 2018
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Both my wife & I have a small $10k GIC held in an RSP account maturing next month. The current FI (Peoples Trust) is only offering 4.45% for a 5yr GIC. People Trusts does not charge for transferring out. I see that Tangerine is offering 5% for a 5yr but they will charge $50 to transfer out & the chances are high when it comes time to renew the matured GIC's, Tangerine will not have the best rate. The issue is that in 5yrs if I want to transfer out from Tangerine to whomever at the time is offering a better rate it will cost my wife & I $50 each which will eat up most of the benefit we would be getting from the better rate. Are there any FI's that do not charge for transferring RSP's to another FI that are offering better than 4.45%? Thanks
8:14 pm
April 14, 2021
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I believe EQ and Hubert do not charge transfer fees. I do not know about the newly merged Access, though.
EQ 5-yr is currently at 4.55%
https://www.eqbank.ca/personal-banking/rsp/rsp-savings-account-fees-and-features
9:01 pm
April 6, 2013
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One could check with a local deposit broker.
Currently, 5-year RRSP GIC's through a deposit broker are in the 4.8% to 4.9% area. There were no transfer fees when I went through one long time ago for part of my RRSP.
12:10 am
October 21, 2013
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I believe Achieva also doesn't charge for transfer.
Something else to consider: many, if not most, of the FIs that charge a transfer fee will reimburse the fee that another FI charges you for transferring out if you ask them. However, the smaller the amount, the less likely they are to do this, or they may only reimburse part of it. 12K would still be considered smallish.
Bear in mind too that these fees can and almost certainly will increase, and the 3 months notice they will give you is useless with a GIC. Tangerine, for example, used to be free, then went to $45, then $50, and will probably increase again within five years at least once - I would expect $75 or so.
Until or unless your RSPs get significantly larger, you may find it better to stick with the free ones. It's less aggravating and there is an economy of scale with larger balance.
You might also consider a shorter term with better rate at same FI. With rate inversion such as we have now in some financial institutions, long rates are less attractive than they sometime are. Five years is a long time in a world which many consider unstable; things can happen.
Please write your comments in the forum.