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Email this12:19 am
August 5, 2014
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Loonie, I agree with you. RRSP transfer fee increases should be grandfathered in. It should only be applicable to new customers after the RRSP transfer fee increase comes in.
Those that have RRSP GIC's before the RRSP transfer fee increase should not be impacted. This should apply to all transfer fees of TFSA's, RESP's, LIRA, RRIF's, LRIF's, LIF's as well.
12:27 am
August 5, 2014
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Loonie, another good example of this is annual RRSP administration fees on a brokerage account and other trading accounts, self directed RRSP accounts etc. that are increased after many years you are client already.
Loonie, my opinion is this is allowed by regulators because G.S.T. or H.S.T. is applied to all these transfer fees, administration fees, mutual fund fees etc.
The Canadian and provincial governments have too much to gain in the billions of dollars at the consumer's, investor's, depositor's expense.
12:31 am
August 5, 2014
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Loonie, I forgot to mention that we used to be able to deduct RRSP transfer fees and annual RRSP administration fees as Canadians on our income taxes in the 1990's. I believe this was removed as a tax deduction in 1996 or 1997.
The Canadian government and CRA probably saw the huge increases in all types of RRSP fees and cut this tax deduction before it costs them too much money.
2:08 am
October 21, 2013
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Beginning this tax year, 2014, you will not be able to count safety deposit fees either, as an investment expense. Those too have gone up in recent years.
However, our gov't is fond of telling us that they are holding the line on income taxes.
I call it the Bell Telephone approach to taxes. Decades ago, when you could find a Bell phone booth on every corner, or so it seemed, it only cost 10 cents to make a phone call. Even then, that was not much money. Yet Bell continued to install and service those machines. They did this because dimes really add up if you get enough of them. And they did.
And so, with our income taxes. The rate may not go up, but by fiddling with the tax credits, a dime here and a quarter there (with inflation, it's now more like $10 here and $20 there), x 20,000,000 people or so, it really adds up.
5:57 pm
April 6, 2013
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Loonie said
I don't think it's a civil case though. It's not a court of law.
It is a civil case eventhough neither the bank's ombudsman nor the ombudsman from OBSI is a court of law. The ombudsman will try to be as fair as a court will be and get both sides of the complaint.
Like a court, the ombudsmen are for dispute resolution and not necessarily for customer satisfaction. If the customer's complaint has no merit, then the ombudsman won't recommend any further action. An example of such a case is a customer who picked the easy-to-guess PIN 1-2-3-4 that the thief of his debit card was able to guess on first attempt: OBSI: Debit Card Fraud - Easily Guessed PIN
6:01 pm
September 6, 2014
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Yes, changing the horse mid stream is excatly what this thread is about.
I had similar, drastic changes done by my company's pension plan admin and also by our company's rrsp managers.
In each case, since the change was so dramitic as to change the complexion of the plan itself, they made us sign the agreement to change.
Anything involving money is supposed to have proper, trackable paper trail that shows that client agreed to changes otherwise god be with us
6:17 pm
April 6, 2013
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Loonie said
Beginning this tax year, 2014, you will not be able to count safety deposit fees either, as an investment expense. Those too have gone up in recent years.
However, our gov't is fond of telling us that they are holding the line on income taxes.
I call it the Bell Telephone approach to taxes. ....
And so, with our income taxes. The rate may not go up, but by fiddling with the tax credits, a dime here and a quarter there (with inflation, it's now more like $10 here and $20 there), x 20,000,000 people or so, it really adds up.
Yes, the government does tweak our taxes, both the rate and the rules.
As for the safety deposit box fess, no-one will be able to deduct them, not even businesses.
The change is estimated to bring in $30 million to $40 million of income taxes a year.
Government strongly suspects that very few people now are actually using the safety deposit box to hold the certificates and coupons for their income-producing investments like stocks and bonds. People likely are leaving the certificates in their brokerage accounts.
Instead, people are claiming the deduction and use the safety deposit boxes for expensive personal effects like jewelery. That's probably true.
8:16 pm
August 5, 2014
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Loonie, I am no fan of government in general but the federal government that we currently have has reduced income taxes and sales taxes by a decent amount.
Wait until 2015 and like Ontario, BC if the federal government turns red we will all be bleeding red ink. You name it, they will tax it.
Luking, this is why I am glad our family has no pension plans because they are worse offenders than investing private savings in RRSP's, RESP's, TFSA's, RRIF's etc.
Norman1, I would not trust putting anything in a safety deposit box and we never used them. The bank or financial institution has their own set of keys so what is the point of even trying protecting anything in these so called safety deposit boxes.
9:07 pm
October 21, 2013
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I actually think my own taxes at least are quite fair, although I don't like the dickering and nickel-and-diming. I don't have a problem with paying for things that we all need to make for a pleasant common life. However, I do have an issue with some of the spending priorities of all governments of all political stripes. It's a question of value for money.
I don't think the bank has a key to my safety deposit box. If they did, there would not be a drilling fee in the event that I lost both keys. I have heard of people attending in person when the drilling was done so as to retrieve their belongings, so it really does happen.
10:18 pm
August 5, 2014
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Loonie, get that in writing from your bank or financial institution that they don't not have a copy of your keys to your safety deposit box and tell me how that works out for you.
It is not just your keys, it is all keys. It is not just a bank, financial institution, storage units as well work all the same way.
Read their terms and conditions of the contract you signed and accepted and you will see that any liabilities, damages, losses etc. are born by the client and not them. We would not believe that they do not have copies of keys for having something stored at their bank, financial institution, storage unit etc.
Loonie, it is on their premisses, on their property, who do you think has access and authority first. You are a renter and not an owner of wherever you store. Why do you think they have insurance?
10:44 pm
October 21, 2013
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And why do you think they drill the locks?
I wouldn't expect them to give me something in writing. To me, it makes no sense.
I also rent a storage unit. I am absolutely certain that management does not have a key to it because I am the one who put the lock on it and I am the only one who has the keys to that lock. If I default on payments, they have to saw the lock off, and they do it regularly.
It's not an apartment. In that case, the landlord always has a key, and we know it, and there is a reason for it. There is no reason for a bank, on the other hand, to get into someone's box because the product that is being sold is, precisely, privacy and security. If they mess with that, they undermine their own product. Only with a warrant could they get into it, and then they would have to drill. And if there should ever be a warrant, they can equally get into one's house, which is not more secure.
I don't think the bank is the least bit interested in what's in my box.
12:32 am
August 5, 2014
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Loonie, if you don't hold it, you don't own it. If you trust them with your property in a safety deposit box then it is your decision what you do with your property.
As for banks and financial institutions, they undermine their products everyday. Did you look at credit card contracts, terms and conditions lately? Internet banking, they are not responsible. They don't care about anything.
Loonie, we have no more privacy and security with all our information floating around everywhere from governments to corporations selling it like a commodity. You, do not think that a bank, financial institution can sell your personal information that you have a safety deposit box? What is going to stop them and how will anyone find out that they did this? I don't see any downside for them.
They can find another sucker consumer, client as one is born every minute. We have a monopolistic banking system in Canada. In our house, we have a reinforced safe and we are more comfortable with that.
It is the people that you know that rob you, Loonie. There is a better chance of us being held up at a bank then this happening to us.
12:53 am
October 21, 2013
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Ultimately, you won't be able to keep your info secure, no matter what you do. This is where things are headed. Technology and the multinationals that run it are in charge, not the little guy.
Meanwhile, I don't have any problem with using a safety deposit box at the bank.
1:01 am
August 5, 2014
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Loonie knowing this, safety deposit boxes are the property of the bank, financial institution and are not the clients of the bank.
It is just something to think about like they can make changes anytime in their terms and conditions, contracts.
10:14 pm
August 5, 2014
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Brian, banks, financial institutions, government, big corporations and all businesses really trust us. They make sure we sign pages and pages when we have to do business with them or follow their laws such as , regulations and terms and conditions in contracts, paying income taxes, paying a mortgage, credit cards, auto loans, roofing on my house etc.
All their clauses, terms and conditions with more legalese and confusing language to make people's heads explode. Let's get real, we are the ones on the losing side when things go wrong and I have to trust them all the time. We have no choice because they are in control and do what they see fit and is to their benefit.
I would not trust putting anything in a safety deposit box, storage unit etc. if they wanted to pay me. Good luck with your storing endeavors.
12:48 am
October 21, 2013
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Safety deposit boxes and storage units seem to be in hot demand where I live. You have to wait quite a while if you want a safety deposit box at the bank, and the storage unit facility is doing a booming business, such that a new customer can't necessarily get the size they want and there often isn't much to choose from.
I intend to downsize mine out of existence in the near future, as I consider it a waste of money. But it does take time to deal with the stuff, of which most of us seem to have an excess.
12:51 am
August 5, 2014
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Loonie, the good news is you will not only save the couple of hundred dollars only but you will save H.S.T of probably about $25 a year if you are using the average size safety deposit boxes Canadians use.
1:18 am
October 21, 2013
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Actually, safety deposit boxes cost a bit more than that now.
However, I would have no one I can complain to or sue if the thing gets destroyed or stolen if I keep them at home.
And, for people who rent or live in retirement homes etc., it's totally impractical. In seniors homes and nursing homes, you are not the master of your dwelling-place. There is always someone who has access to your "home", whether you want to let them in or not. Also, as you age, you may forget the combination or how to open your safe if you are still in your home. And renters often have to move more frequently and can't attach their safe to the building anyway.
7:37 am
April 6, 2013
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Jack Manning said
...
Norman1, I would not trust putting anything in a safety deposit box and we never used them. The bank or financial institution has their own set of keys so what is the point of even trying protecting anything in these so called safety deposit boxes.
Loonie said
....
I don't think the bank has a key to my safety deposit box. If they did, there would not be a drilling fee in the event that I lost both keys. I have heard of people attending in person when the drilling was done so as to retrieve their belongings, so it really does happen.
Yes, the bank has their own set of keys. But, the bank keys are not enough to open any of the safety deposit boxes.
Each safety deposit box has two keyholes: one for the bank key and one for a client key. Both keys are needed to open or lock the box. Neither the bank key nor the client key can open the box on its own.
Should the client lose their copies of the client key, then the box cannot be opened. In such cases, the client key part of the locking mechanism has to be drilled out and replaced.
Having storage under two locks in a bank vault is one feature of the safety deposit box. Another is the storage is off-site from the home.
12:04 am
August 5, 2014
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Loonie if you are a renter or living in a retirement residence, nursing home, you are in the same situation as renting a safety deposit box or storage unit. You are still a renter so I don't see why you would expect any more security or safety. Renters have less rights than owners.
If you don't own a home then you can't expect to have your own safe as if you did own a home. As for the prices of safety deposit boxes, Duca C.U. has safety deposit boxes for $225 to $250 dollars+H.S.T. so I have no idea what safety deposit boxes you are renting.
Please write your comments in the forum.