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RRSP Transfers

Rockslinger

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Apr 24, 2005
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Guys, why does it take 6 weeks to transfer cash from my RRSP at one bank to my RRSP at another bank a few blocks away? Don't banks know that we have computers now?:confused:
 

hinz

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Nov 27, 2006
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Guys, why does it take 6 weeks to transfer cash from my RRSP at one bank to my RRSP at another bank a few blocks away? Don't banks know that we have computers now?:confused:
Could be backlog from the back office at transfer out bank.

Contrary to people wish to believe, the Canadian financial institutions are not big on process automation and back office integrations like the Americans and the Brits.

Still 6 weeks for all in cash transfer is long, assuming there are no lock-in funds. The turnaround time in general should no more than 10 business days, 15 business days for all in-kind transfer.

BTW, care to share which bank?
 

hinz

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Nov 27, 2006
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The bank was CIBC Wood Gundy.
Quite surprising since they have JV with Mellon Bank here (CIBC Mellon). Mellon is quite efficient among of the custodian banks in US and Bank of New York is the main competitor.

Turns out CIBC Mellon is no better compared to RBC Dexia
 

Rockslinger

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Apr 24, 2005
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I was surprised in this modern age that they actually cut a paper cheque which is sent via Canada Post to the other institution. Don't they know we have computers now?
 

hinz

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Nov 27, 2006
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I was surprised in this modern age that they actually cut a paper cheque which is sent via Canada Post to the other institution. Don't they know we have computers now?
To the best of my knowledge, it's common procedure to cut a cheque and courier to the other institutions if it's outside downtown area.

This is pure speculation but I suspect it costs huge amount and years from the ground up to build and invest IT infrastructure necessary to automate back office processing and transfer funds electronically.

Doing so mean costs needed to be cut somewhere in order to maintain the profit margin. What's better than building up the infrastructure, fire the local IT guys and rehire somebody offshore say in India to do the grunt work and "nearshore" say the English speaking countries in the Caribbean to do time sensitive, 'higher value" call centre. :rolleyes:
 
Oct 7, 2004
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Toronto
RRSP Transfers

It has nothing to do with technology or paper based systems. Any financial institutiton is not interested in losing or transfering funds that they are using to make them more money, right? Ok so, when you transfer your rrsp they will take as much time as they like to transfer because it's not important to them. Why the hell would you ever transfer from one bank to another bank? You need some serious education! Banks don't give you a proper rate of return. You should transfer to a investment company and take out the bank that is acting as the middle man.
 

Rockslinger

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Apr 24, 2005
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Why the hell would you ever transfer from one bank to another bank?
CIBC was paying 1.15% interest and ING was paying 3% interest at a time when people thought the equities market was going to hell. No, I will not hand my money over to Madoff, Earl Jones and/or Jack Lawrence.

Oh, the whole transfer process took 42 days. CIBC said delay was because ING forgot to tick one of the boxes on the transfer form. Otherwise, it would have taken "only" the regular 28 days. Isn't there some kind of law that says transfers must be completed in 10 business days. Yes, I was also charged a $135 transfer fee.
 
Oct 7, 2004
235
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Toronto
How would you like 7%? I thought you would like that AVOID THE BANKS and have the flexibility to choose where your money is being invested! You think 3% is good? Inflation is 3% so congratulations you not making or losing money.
 

hinz

New member
Nov 27, 2006
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Oh, the whole transfer process took 42 days. CIBC said delay was because ING forgot to tick one of the boxes on the transfer form. Otherwise, it would have taken "only" the regular 28 days. Isn't there some kind of law that says transfers must be completed in 10 business days. Yes, I was also charged a $135 transfer fee.
There are no laws per se regarding the business days to complete transfer but my guess will be barring that hiccup at ING, CIBC would probably say more days than on average to make the transfer more of a hassle or more importantly give you a "pleasant" surprise when the transfer is completed earlier than expected. It's under promise over delivered glimmick.

BTW, the whole 10 business day thing is usually a KPI when doing regular performance appraisal at the bank.

WRT $135 transfer fee, is ING going to reimburse the fee? If not, it looks like the amount involved is properly less than $50K....
 
B

burt-oh-my!

I believe there ARE some standards as for how long transfers should take. Most nowadays take maybe 5 to 15 business days.
 

Keebler Elf

The Original Elf
Aug 31, 2001
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The Keebler Factory
I'm in the same boat and it seems like the banks just aren't interested in making it convenient to transfer funds from one bank to another. I contributed today and the only way I could do it was to take out all the money in cash, walk across the street, deposit it at the bank where I have my RRSP, and then transfer the money to my RRSP account. What a waste of time!
 
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