Just withdrew money from my RRSP. TD charged $50 for me to take out my own money in a transaction that took all of 5 minutes. Obscene!
Plus I had to pay HST on the fee - even more obscene.
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Just withdrew money from my RRSP. TD charged $50 for me to take out my own money in a transaction that took all of 5 minutes. Obscene!
Plus I had to pay HST on the fee - even more obscene.
Not only that, they also held back some funds for tax purposes.
Best thing to do is keep your withdrawals to a few times a year to keep the charges low.
Be glad you have RRSP funds, many (including myself) are finding it difficult to put money in an RRSP.
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They charge that for the paperwork involved in reporting it to Gov't.Quote:
Originally Posted by dirtdog
I get the tax with holding part. It's the substantial fee to what is essentially withdrawing money from a bank account that is annoying.
Really? $50? For what must be an automated process given the likely number of them in a year
Quote:
Originally Posted by dirtdog
LOL!! Dirt dog, no offense but.. . . you have a lot to learn about banks! They are the Supreme Authority on excessive fees!
ING Direct charged me NO fees when I encashed some of my RRSP's . I did it myself online , not over the phone or anything.Quote:
Originally Posted by dirtdog
But mine were just some RRSP GIC's , so it was pretty straightforward.
I also have some Mutual Funds ( RRSP ) with them , I am planning to withdraw/encash them next year ..lets see how that goes & if any fees are involved in that case.
I have a no fees account, so this was a surprise. Anyway first and last time I do that with TD.
There are definitely fees to the government but of course, banks can charge what they like and it's also disclosed in advance, in all the fine print. If you are planning to cash it out regularly, investing in an RRSP isn't really the right choice. Not only do you pay those fees (and for example, no fee to withdraw from a TFSA) but you will be dinged on your taxes. If you don't have the withholding taxes taken at the point of withdrawal (which may or may not be done depending on the amount you withdraw), you may still feel the sting when the amount of your withdrawal gets added to your taxable income for the year.
Being able to save in an RRSP is a great thing if you can buy and hold it until you withdraw in retirement. Otherwise, you will be stung more than one way by taking it out early.
Interesting, I didn't know they charged a fee for withdrawing funds from an RRSP. Is there a specific amount (minimum) to avoid the fee?