Transferring money? Get ready to wait…

See how your bank’s transfer fees and time stack up

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by

From the April 2015 issue of the magazine.

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These days, a lot of Canadians are moving their investments out of big banks to discount brokerages or low-fee investment companies. Just be prepared wait an average of 19 days for your money to be transferred, during which time those funds are out of the market and out of your control. That’s the major finding from new proprietary data compiled by online investment service Wealthsimple. They found that the fastest transfer by any financial institution was five days, with the slowest one taking more than two months. “Interestingly, Canadian financial institutions have the technology required to transfer funds out of a client’s account in a timely matter, but they end up dragging their heels,” says Wealthsimple’s Dave Nugent. “It’s a frustrating experience for investors.” While Scotiabank charges the highest fees in the market ($150), they also have the best average transfer time of seven days. RBC, TD and CIBC, meanwhile, average transfer times of 20 days or more.

Transfer time

 

9 comments on “Transferring money? Get ready to wait…

  1. Why didn’t Mr Hodges finish the article with a suggestion of who to write to regarding fixing this ridiculous situation? The banks do obey the Bank Act, don’t they? Who is the Minister responsible? His contact info??

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  2. Would it not be prudent for the government to set a standard for transfer of registered funds. Ie. 2 weeks and courieeed.

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    • I understand transfers must be processed within 90 days.

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  3. Can you not transfer from your brokerage to your checking’s then write a check?

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    • No. It has to be transferred (T2033 form) so that the tax deferral stays in place.

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  4. Not always are the funds out of the market.

    I understand that the law allows up to 90 day for a relinquishing institution to transfer the money . Many mutual fund companies process transfers the day they are received.

    By far the worst bank I have delt with is a particular local bank here in Alberta. They keep adding more silly excuses to delay a transfer. More than once I’ve had to send threatening letters.

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  5. Transfer fees are just another cash grab, plus a slap in the face to their clients. Often the transfer fees are more than the interest earned while it was invested!

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  6. I wish I had seen this before my wife and I transferred our accounts (RRSP, RIF. TFSA & Non-Registered) from RBC. It has been a month since the first transfer was made and it’s all not done yet. We moved to Scotia Bank because they offered free investment seminars, free trades and they called us to talk about our accounts and told us that they could save us money and possibly make us money. No one at RBC ever called to talk about our accounts.
    RBC never recognised our regular bank accounts and our investing accounts as being in the same Bank (RBC Royal Bank & RBC Direct Investing are supposedly separate entities) for decreased fees structures, whereas Scotia Bank recognises all our accounts together (Chequing, savings and iTrade accounts) for better rates.
    RBC is playing like a spoiled brat so it’s so long RBC.

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  7. Tangerine lets you transfer money from your TFSA Saving Account RRSP/RIF no charge to your linked checking account which you set up when you join Never tried to make another type of transfer The worst company for transferring small amounts of emergency international money is Western Union that charge 20% or $10 on a $ 50 but goes down to to $25 for $300 All the big banks also charge very similar rates

    Reply

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