Scotia Alternatives to Tangerine Investment Funds?
I'm actually with Scotia, where I opened my first TSFA and a RSP ever, at the beginning of this year, but I didn't do anything with them yet.
I started watching how to invest this money. I am interested in Tangerine's Investment Funds, especially the Balanced Growth (1/4 CA bonds, 1/4 CA Stocks, 1/4 US Stocks, 1/4 World Stocks) for my TSFA, and either the Balanced Income or the Balanced ones for my RSP.
I found out that to move out a registered fund from Scotia would cost me $150 per account (so if i transfer both accounts, It would cost me $300!).
I'm going to call them to know if transferring these accounts from Scotia to Tangerine really costs something (heh, they are in the same family now, right?), or If I can purchase Tangerine's funds from Scotia.
Otherwise, do you know "One Fund" alternatives available through Scotia investment platform?
I believe those costs are to transfer actual accounts, but you said you don't have any money in there yet. You can open a TFSA as many places you want. It's not a real account in the sense that a savings account is, it's more of a place where you put accounts.
So what I'm trying to say is if you want a TFSA as tangerine you should just be able to open one, and ignore/close your other one if you don't want to use it.
Actually I have money in there: I put as much as I could (I reached my max in the TSFA), and what I could in the RSP. That was dumb of me.
But all is in cash.
First off: if your putting money into a TFSA you want to do something with it. I don't know about your bank specifically but at mine cash doesn't do anything unless it's in something (within the TFSA).
Also it might be a mistake but don't get upset. You are putting away savings, even if you are doing something that isn't the best option you are miles ahead of sooo many people. Your on the right track doing the right thing.
As far as the transfer you will have to talk to the institutions, sometimes you can get fees waved or reimbursed, it's always worth a call. Another option (for TFSA only) is take it all out and wait until the new year to put it back in where you want it. No fees to withdraw or deposit, and any withdrawals get added back to contribution room once the new year starts. Lots of people do this annual "free rebalancing". I don't know if a version if this exists for RRSP, but I don't think it does.
Tangerine is a subsidiary. They are their own company and their own chartered bank. They are no the same company are Socitabank. They are a bank that has been in Canada since 1997 (under the name ING Direct) and who's parent company switched hands in 2012 to Scotiabank. Scotia has done a surprisingly good job of keeping Tangerine a separate business and true to it's values. This is why Scotia loves fees and Tangerine doesn't.
Scotia lists the fallowing fees for their registered accounts.
We do not charge a fee for the first cash withdrawal per year made from your registered income account; there is a fee of >$50.00 for each additional cash withdrawal. $50.00 for each transfer you make from your registered income account to a financial institution that is not a member of the Scotiabank Group. We do not charge a fee for transfers made within the Scotiabank Group. $50.00 to close your registered income account.
This is how it would cost you up to $150.
As for the TFSA you can reduce this cost. In December withdraw all your TFSA at Scotia and hold as money in your chequing or non-registered savings account. This means $50 for closing your mutual fund account (if you want to close it) and $50 might apply for withdrawal. Then in January deposit this money into a Tangerine TFSA. Since this years withdrawals are added to next year's contribution space you get to transfer and not run into as many fees. Tangerine will give you $50 for signing up now only if you use someone's referral code and account is open before OCT 31st if opening balance is $100+. You can ask someone on PFC or just Google it and get a referral code (both the referrer and referee get $50 each). This could be just a chequeing or savings you open. If you do this after October then it will be $25 per referral instead. This helps you overcome the fees.
Also why would you go balanced Income or Balanced for RSP? TFSA I can understand. As for RRSP sure if you are retiring soon but if you are talking 10-15 years+ then you can ride out the volatility of lower bond allocation and you will only reap the reward of higher returns.
Have you given Scotia a chance and looked at their offering of low-MER (under 0.5%) passive large-index funds? I would bet they have a comparable product.