Tag Archives: RRSP

How to Contribute to Your RRSP at CIBC Investor’s Edge By Transferring from a Linked Account

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Well, it’s RRSP season again and although I’ve swum past all the hooks and jigs trying to catch or snag me into their high-fee mutual-fund traps, I do still want to make a contribution to an RRSP before the end of February. I intend to avoid any high pressure sales tactics, though, by simply making a transfer from my linked bank account into the RRSP account at CIBC Investor’s Edge.

Transferring New Money Into Your CIBC Investor’s Edge RRSP from a Linked Bank Account

  1. Sign in to your Investor’s Edge RRSP account.
  2. From the list of choices on the left side of the screen, click on Cash Transfers.

Cash Transfers Step 1 Page

  1. Check that the correct account from which to get the money is displayed in the From Account: field. If necessary, choose the correct account.
  2. From the drop-down list beside the To Account: field, select your RRSP account.
  3. In the Amount $ text field, type how much you want to transfer into your RRSP to make your RRSP contribution.
  4. If desired, select any future date from the drop down lists for Process Date:
  5. Select the correct type of contribution from the drop-down list in the Registered Contribution Type: field. Choices include: Regular and Fee Payment.
  6. Read the Please Note: information about when transfers will take place.
  7. Click on the Next button.

Cash Transfers Step 2 Page

  1. Review the information to ensure it is correct.
  2. If it’s ok, type your password in the Trading Password: field.
  3. Click on the Submit Transfer button.

Cash Transfers Step 3 Page

  1. Read the information confirming your contribution.
  2. Make a copy of the Order Tracking Number in case of future concerns. You can also click on the View Order Status button if desired.
  3. When you are finished using your CIBC Investor’s Edge account, click on the Sign Off button.
  4. Clear your cache and close your browser.

It’s all good!

UPDATE: I made the transfer request on a business day before 5 p.m. ET. The money was in the cash balance of my Investor’s Edge RRSP account the next morning, ready to buy more shares. Excellent!

UPDATE: I made the contribution on Wednesday February 17, 2016 and received the income tax receipt in the mail on Wednesday February 24, 2016. Also excellent!

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Where Can I Get a Good or at Least Decent Rate on a GIC for my RRSP?

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With the stock market pundits forecasting that THIS time it really is the end of the world, many people don’t want to put their RRSP money into a stock, mutual fund or ETF at least not yet. Leaving aside the arguing about whether it’s actually a great time to buy since prices are low, I decided to look and see what rates are available for a RRSP guaranteed investment certificate, GIC, and whether they are good, decent or awful.

Big Banks Do Not Often Offer Great RRSP GIC Rates

Sometimes one of the big Canadian banks will surprise me by offering a good rate for a RRSP GIC. Not this year though.

BMO has 0.85% for a one-year term or 1.25-1.5% for a 5-year term.

CIBC has a bonus rate RRSP GIC at 0.9% for a one-year term or 1.3% for a 5-year term.

Scotiabank has a 1-year at 0.9% and a 5-year term at 1.5%.

TD has a 1-year term GIC at 0.85% and a 5-year term at 1.5%.

Royal has a 1-year term GIC at 0.9% and a 5-year term at 1.5%.

None of these are cashable before maturity. There may be other terms and conditions so be sure to read carefully before you lock up your money in any GIC.

Remember banks often have some discretion about setting their rate. Ask if you can get 0.5% more. They will probably say no, but they might offer 0.25% just for asking.

E-Banks Offer Better RRSP GIC Rates

There was a time when ING Direct operated in Canada and they used to offer some quite nice rates for GICs. Now the former company is called Tangerine and is owned by Scotiabank, and the good rates seem gone.

Tangerine is offering a 1-year term GIC at 1.2% and a 5-year term at 1.9%. Better than the “big banks” but still not great.

PC Financial, which is owned by CIBC, is offering a one-year term GIC at an APY of 1.2% and a 5-year at 1.9%. Yes, that’s the same as Tangerine.

There are some smaller, newer e-Banks though.

Oaken Financial, which is controlled by Home Trust, is offering a one-year term RRSP GIC paying 1.95% and a 5-year term paying 2.5%. That 2.5% is the same amount offered for a 2-year term by Zag bank but you’re earning it for more years. In case you’re interested a 2-year term is 2.1%.

Zag Bank, which is run by Desjardins, has a 2-year term RRSP GIC paying 2.5%. You have to invest before June 1 2016. For a 1-year term GIC, their rate is 1.05% and for a 5-year GIC their rate is 1.90%. So you can see the 2.5% 2-year rate is definitely a lure.

EQ Bank isn’t offering RRSP GICs at this time.

Where Should I Buy My RRSP GIC in 2016?

So none of these places is offering a great rate for a RRSP GIC.

Personally, I’d seriously consider Oaken Financial for a one-year term RRSP GIC.  I’ve been using their services for over a year for GICs for part of our emergency fund and I’ve been pleased with the service. (By the way, I get nothing from Oaken if you buy one. I’m a customer not someone with a business connection to them!)

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