closing registered accounts is different than closing regular accounts
If you find a registered account that suits you better at another institution, you cannot simply withdraw the money, close the account and move on. You need to transfer the account.
- This is because a withdrawal and recontribution would count towards your contribution limit for the year.
Here's what you need to do:
- Have your CRA Notice of Assessment handy – some banks may want to see it
- Bring your old account statement to the new banker and fill out the transfer from and let them work on the transfer with your old bank
- Ask the new banker if they can cover the transfer fee (which could be $50-130). Watch out for promotions on account transfers that include covering the fee
- Be prepared that the transfer can take a few weeks and that you’ll need to follow up with both banks
- Once the transfer takes place, make sure to check the details carefully – bank customers report transfer mistakes.