RRSP fees

Fees for RRSPs vary widely. What you pay depends on where you open your RRSP account and how you invest your savings.

4 types of fees

  1. Opening an account – There is usually no charge to open an RRSP account. Some institutions may charge a small set-up fee.
  2. Annual administration or trustee fee – The annual fees for RRSPs can vary. If you have a group RRSP, your company may cover this cost for its employees. Make sure you understand what these fees are before you open an account.
  3. Investment costs – You pay a commission when you buy and sell stocks and ETFs for your plan. You may pay a sales charge when you buy mutual funds for your plan, or when you sell them. You’re also charged a management expense ratio (MER) if you hold mutual funds or ETFs.
  4. Other costs – Most plans charge fees for certain services. Examples: transferring money to another RRSPRRSP See Registered Retirement Savings Plan.+ read full definition, closing the RRSP.

Ask your financial institution if they will waive the annual feeAnnual fee A fee that is charged on an annual basis. One common occurrence of an annual fee is the fee charged by credit cards.+ read full definition. They may agree to do this if you hold other accounts there or if you have enough savings in your plan.

Warning

Financial institutions may charge $100 or more in an annual administration feeAdministration fee The fees you pay to a financial institution for activities related to the operation of the account.+ read full definition for self-directed RRSPSelf-directed RRSP A retirement savings plan that lets you choose from a wide range of investments. You can choose from a wide range of investments or work with an advisor. There are rules about how much you can save each year, and you don’t pay tax on the money that stays in your plan.+ read full definition accounts – make sure you understand what this fee is before you open an accountAccount An agreement you make with a financial institution to handle your money. You can set up an account for depositing and withdrawing, earning interest, borrowing, investing, etc.+ read full definition. You could end up paying even more to close your account or transfer your funds if you change your mind.

4 questions to ask

Are there fees to:

  1. open an RRSP?
  2. administer your RRSP each year?
  3. transfer money between RRSPs?
  4. close your RRSP?
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