Can I Transfer my RRSP and TFSA GICs from CIBC to a Self Directed Investor’s Edge Account?

When setting up our Investor’s Edge self-directed RRSP account recently, we asked our CIBC advisor if we could transfer our CIBC GICs in kind (without cashing them out) into our new account.

The question crossed my mind first because some of our GICs were small: less than $5000 per certificate. If you buy a GIC within an Investor’s Edge RRSP account, it has to be at least $5000. So I wasn’t sure if we could transfer our large GICs but could not transfer our small GICs.

No one seemed to know the answer!

Investor’s Edge Hedges
Imagine my surprise upon phoning Investor’s Edge to ask to be told “There is no simple answer.” They don’t actually have a list of types of GICs that can be transferred in kind from CIBC to Investor’s Edge. In fact, they said my CIBC branch advisor would have to phone Investor’s Edge and ask about each specific GIC. They would have to look up the GIC number to tell me whether it could be transferred or not!

CIBC Says No
This seemed very strange to me. But we went and talked to our CIBC branch advisor. She advised us that generally speaking no GICs can be transferred directly in kind from the RRSP we had at the branch to our Investor’s Edge RRSP. We would have to wait till the GIC matured. At that time, we would have to ask to have the GIC mature to a cash account. The cash could then be transferred to the Investor’s Edge account, where it could be re-invested in a new GIC or used to buy stocks, bonds or other investments.

Plan Ahead to Move Investments from a CIBC RRSP or TFSA to CIBC Investor’s Edge Self Directed Account

So if you are planning to move your RRSP or TFSA investments from CIBC to Investor’s Edge, you will need to plan ahead. Arrange for any GICs to be deposited into a cash account when they mature. Don’t invest in new GICs if you are getting ready to transfer.

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Did you ever try to transfer GICs in kind from a major bank or financial institution directly into a self-directed investing account? Was it possible? Please share your experiences with a comment.

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