As I continue to collect and combine our RRSP investments, I recently moved money from our Tangerine RRSPs to our InvestorLine and Investor’s Edge RRSPs; To add more interest to a dull bookkeeping task, I started both transfers on the same day to see which brokerage was faster.
UPDATE: Please be aware that as of January 2015, Tangerine has started charging a fee if you transfer your RRSP or TFSA from Tangerine to another bank, credit union, brokerage or financial institution.
Is It Easier to Initiate a Transfer to InvestorLine or Investor’s Edge?
For some strange reason, CIBC still requires you to visit a branch to finalize a T2033 to transfer funds into an Investor’s Edge account. Technically, the branch is supposed to add their contact information to the form before it is sent in to the Wholesale Brokerage by fax.
I guess you could cheat and try faxing it in yourself without this info but since I needed to return something to our safe deposit box, I just took the form to the branch.
InvestorLine lets you mail in the T2033.
When Did the Money Leave Our Tangerine RRSPs?
We mailed and faxed the two T2033s on June 19.
On June 30, the money left one Tangerine account headed towards Investor’s Edge.
On the morning of July 2, the money was gone from the other Tangerine RRSP on its way to InvestorLine.
Who Won? And When Did the Money Land in Our Brokerage Accounts?
BMO InvestorLine won. The RRSP money landed in the cash balance of that account on Saturday, July 5, back-dated to July 4.
CIBC Investor’s Edge finished a close second. The RRSP money landed in the cash balance of that account on Tuesday, July 8, back-dated to July 7.
Why Does It Take So Long After Leaving Tangerine to Land In the Brokerage Account?
I’m beginning to suspect part of the delay is that usual “hold” banks and brokerages put on funds. Since this is a transfer from an external bank to the brokerage, they may be putting a hold for 2-5 business days on the funds.
I know from experience that once the cash is in the brokerage accounts there is no hold on it and I can invest it right away.
Why Do I Keep Having To Transfer RRSP Money from Tangerine In the First Place?
I keep a lot of money in GICs. You generally can’t transfer most GICs into a brokerage account. For sure, you can’t transfer ING Direct/Tangerine GICs.
Yes, I could actually cash out our Tangerine GICs early but that would require forfeiting most of the interest. Instead, I just wait till they mature and then shift the money over.
Now, I usually buy GICs in our brokerage accounts in the first place. But we didn’t have brokerage accounts 5 years ago. My goal of consolidating, simplifying and improving our RRSP investments is a fairly recent one. (Which correlates strongly with the time the children grew old enough to give me some free time in the evenings.)
For now, everything’s moved that can be. So now we wait for the big market crash. Or not.
UPDATE: Please be aware that as of January 2015, Tangerine has started charging a fee if you transfer your RRSP or TFSA from Tangerine to another bank, credit union, brokerage or financial institution.
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Have you noticed a delay between when money disappears from one RRSP and when it reappears in another? Does it seem to take 2-5 business days? Please share your experiences with a comment.
