Transferring your Tax-Free Savings Account (TFSA) from Alterna Bank to another financial institution or brokerage is a standard procedure, but it does come with a specific administrative cost. Whether you are consolidating your registered investments or moving to a self-directed trading platform, understanding the exact transfer commission—often referred to as a "transfer out fee"—is crucial for accurate financial planning.
Alterna Bank charges a flat administrative fee of $125.00 CAD to transfer any registered plan (including a TFSA, RRSP, or RRIF) to another financial institution. This fee covers the compliance paperwork and secure routing required by the Canada Revenue Agency (CRA) to ensure your funds maintain their tax-sheltered status during the move. Below, we break down the exact steps to initiate your transfer, troubleshoot digital banking hurdles, and share expert strategies to potentially offset this cost.
| Category | Details |
|---|---|
| TFSA Transfer Out Fee | $125.00 CAD |
| RRSP / RRIF Transfer Out Fee | $125.00 CAD |
| Non-Registered Transfer Fee | $20.00 CAD |
| Estimated Processing Time | 10 to 20 Business Days |
Step-by-Step Guide to Transferring Your TFSA
- Step 1: Do not withdraw the funds yourself. Instead, log into your new financial institution's digital portal and locate their Registered Account Transfer Form (often an electronic T2033 equivalent).
- Step 2: Open a separate browser tab and log into the Alterna Bank online portal. Navigate to Accounts and select your TFSA eSavings Account.
- Step 3: Note down your Alterna Bank Institution Number (608), Transit Number (00016), and your specific 7-to-12 digit TFSA account number to populate the receiving bank's transfer form.
- Step 4: Ensure you leave a liquid cash balance of at least $125.00 in your Alterna TFSA (or a linked Alterna chequing account) to cover the transfer commission. This prevents the transaction from being delayed or rejected for insufficient funds.
- Step 5: Submit the transfer request through your new institution. They will communicate directly with Alterna Bank's back office to finalize the registered transfer on your behalf.
Pro-Tip: Before initiating the transfer, always ask your receiving institution if they offer a transfer fee reimbursement promotion. Major Canadian brokerages (like Questrade or Wealthsimple) will routinely refund the $125.00 Alterna Bank transfer commission if you are moving an account balance that exceeds a certain threshold (typically $5,000 or $15,000).
Troubleshooting Common Digital Access Issues
- Multi-Factor Authentication (MFA) Delays: If you are logging in to retrieve your account numbers or download a TFSA statement for the new bank and the SMS code fails to arrive, your carrier may be blocking shortcodes. Temporarily switch your MFA delivery method to email using a trusted device.
- Browser Errors and Blank Screens: When attempting to view historical TFSA e-statements, strict pop-up blockers can cause the PDF viewer to freeze or display a blank page. Clear your browser cache and disable privacy shields for the Alterna domain, or try an Incognito/Private window.
- Locked Account ID: Repeatedly entering an incorrect password will lock your Alterna digital profile. If your account is frozen while you are trying to verify transfer details, you cannot unlock it online. You must call Alterna Bank's Contact Centre at 1.877.560.0100 to manually verify your identity.
Frequently Asked Questions
Can I avoid the $125 transfer fee by just withdrawing the cash?
Yes, but there is a major caveat. If you manually withdraw funds from your TFSA to your chequing account and move the cash yourself, you lose that TFSA contribution room until January 1st of the following calendar year. This method is only recommended if you have plenty of unused contribution room or if you are doing this late in December.
Does Alterna Bank charge a fee to transfer funds between my own accounts?
No. If you are simply transferring money from your Alterna Bank TFSA into your personal Alterna No-Fee eChequing account, there is no $125 registered transfer out fee. Standard internal transfers are completely free.
Do I need to notify Alterna Bank before submitting a transfer request?
No. As long as you initiate the official registered transfer request through your new receiving institution, they will handle all the required CRA paperwork and communication with Alterna Bank directly.
