Author Topic: Can I move RRSP to a different bank?  (Read 1479 times)

travel2020

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Can I move RRSP to a different bank?
« on: September 21, 2021, 02:43:25 PM »
I have an RRSP at RBC that was opened long before I moved to the US. The funds are mostly invested in RBC funds (high fees) and some US stocks.

I havenít kept up with the changes and developments in Canadian banking and RRSP regulations. Anyone know if it is possible for me to move the RRSP to a different bank/firm while a non-resident? If so, any recommendations to which bank/investment firm to move to where I can get access to low cost index funds, and best way to go about it?

Thanks in advance!

GuitarStv

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Re: Can I move RRSP to a different bank?
« Reply #1 on: September 21, 2021, 02:58:31 PM »
I switched a all of my banking away from CIBC about ten years ago so I know that it is possible to switch your RRSP money to another institution.  I remember it being a pain in the ass that required physically going into the bank though.

TD offers e-series funds that are a reasonably low cost index based mutual fund that you can stick your RRSPs in.  My understanding is that you can buy ETFs from Vanguard or iShares with a lower MER, but I have no experience doing that.

travel2020

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Re: Can I move RRSP to a different bank?
« Reply #2 on: September 21, 2021, 10:01:48 PM »
Thanks @GuitarStv for the info. I will check out TD options and can tackle the transfer itself on my next trip to BC.

FIRE Artist

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Re: Can I move RRSP to a different bank?
« Reply #3 on: September 24, 2021, 08:25:29 PM »
If you are not going to be adding money, by far the easiest thing for you to do is open an RBC Direct Investing RRSP account attached to your existing account/bank card.  You should be able to do this yourself online, or at the very least over the phone.  You will then sell your mutual funds and buy an ETF, you can have a USD RRSP account at RBC if you like, or just buy the CND version of the same Vanguard funds.  It is $9.95/trade, but I assume that as you are not a current resident of Canada you are likely not adding funds, so just eat the up front cost of getting set up and then let the funds appreciate.  I recommend that you purchase one of the asset allocation/all in one funds by Vanguard, they self balance and you can DRIP them so you donít need to pay commissions to re-invest, if you put all your money into this one fund, it will cost you a grand total of 9.95 until you withdraw in the future.

Option 2 is to open a Questrade account online, they will help you port over your RRSP funds from RBC to them, usually what happens when you port an account is the mutual fund is sold and it is ported as cash.  You can purchase ETFs commission free with Questrade, but if you are not buying regularly commission costs should not be an issue for you.

You can sell and purchase any investment at a Canadian brokerage as a non resident as long as your are not living in a watch list country.  I was not able to make any investments when I lived in Indonesia for this reason, no problem to do so when I lived in the UK or Colombia. 

grmagne

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Re: Can I move RRSP to a different bank?
« Reply #4 on: October 20, 2021, 07:07:32 AM »
I have an RRSP at RBC that was opened long before I moved to the US. The funds are mostly invested in RBC funds (high fees) and some US stocks.

I havenít kept up with the changes and developments in Canadian banking and RRSP regulations. Anyone know if it is possible for me to move the RRSP to a different bank/firm while a non-resident? If so, any recommendations to which bank/investment firm to move to where I can get access to low cost index funds, and best way to go about it?

Thanks in advance!

One other bit of advice for anyone wanting to switch financial institutions. You should be able to transfer any funds between major Canadian financial institutions and any fees incurred should be absorbed by the receiving business; they're more than happy to take your business in exchange for the cost.

You can transfer in 2 ways:

Transfer in kind: Your funds/stocks/ETFs are moved intact just as they were at the previous institution.

Transfer in cash: Your assets are sold for cash before being transferred. They'll remain in the same type of account, for example your TFSA and RRSP money will remain in the same categories, but now you'll have cash that you can reinvest in any product of your choosing.