One of the cornerstones you can set up to plan for your disabled child’s future is the RDSP (read the CRA page for all info). The grants from this program will help you set up funds for your disabled child’s future since planning for the day that you are not around to help your child is one of the more significant worries for most parents of disabled kids.
I have written about the trials and tribulations I have, setting up an RDSP with TD/Waterhouse. I have been happy with the system (see the bottom of this post for a list of the posts on this topic so far). However, I have found yet another annoyance to tick me off a little more.
Let me preface this: I learned all of this on the coldest day of the year so far, where I am doubtful to want to go out anywhere to do anything, which may explain my RDSP and TD aggravations level being so high.
We had decided that we should be putting money in each of our paycheques into our son’s RDSP to take advantage of the grants and such, and previously to set up this kind of auto-magic savings has been relatively simple TD website. Creating a Pre-Authorized Purchase Plan is an actual function on the TD Mutual fund website, so I assumed that for TD/Waterhouse, it might be just that simple. You can guess, that was not the case.
I noticed that it was not possible on the online interface to transfer money into the RDSP account at all. It is possible to move to my TFSA, RRSP or trading account, but the RDSP account did not appear on the list of bills I could transfer money into, which annoyed me, but I assumed it meant that I had to call into the Easyline folks and do things that way. Not being a great telephone person, but I finally forced myself to call in to Easyline.
I spoke to a polite young man, who was very apologetic and he said he could not help me, that I had to go into the Bank branch and set up the automatic payments there.
How can any bank force me to go into their branch (when it is -30 Celsius outside) to DEPOSIT money into a savings vehicle?
I am irked (nay, even peeved) that I must now trudge into my local TD branch to ask them to transfer money bi-weekly into my son’s RDSP, and I will keep my regular readers posted on my progress in this area.
Addendum RDSP and TD Aggravations
I eventually did figure out a way to make this work. In TD Direct Investing RDSP Deposits, I outline making my son’s RDSP a payable bill. It took a while to make it work, but now I am making bi-weekly payments to the account.
Other RDSP Posts to Read:
- RDSP Completion of Initial Work which sums up what had to happen to set up my son’s RDSP with TD
- Registered Disability Savings Plan an introduction to the program.
- New Financial Programs are Never Easy I outline the steps we took to actually set up the account with TD
- No You Are Not Married to Him outlines the issues we ran into with my wife’s identity that got tripped by applying for the program
- The Journey Continues continues the saga of attempting to put money into the RDSP.
- The Journey Continued is me ranting about how long it took to actually transfer money to the account (while watching the Monaco Grand Prix).
- Registered Disability Savings Plan: The Other New Government Savings Plan which is a guest post written as an overview of the program as well.
Read my post on this December 27, 2024 at 3:22 AM, on the other related article, here:
https://www.canajunfinances.com/2014/10/28/rdsp-with-td-waterhouse-a-step-in-the-right-direction/#comment-129933
We hold most of our investments in Q-Trade because, as 20-somethings 20 years ago, TD Waterhouse scoffed to our faces we “only” had 10K to invest. They told us to come back when we had more than 100K to invest.
Luckily that made us realize we didn’t want to deal with them anyway.
But now, recently having received the disability tax credit, it appears our only option to self-direct is through them. I have an appointment tomorrow morning to open an RDSP with them, but I am leery now. It’s clear they have no intention of offering online RDSP services either.
I’m even more revolted by TD Waterhouse now. I’m swearing under my breath at them now.
From some of the info I am hearing if the account is opened for the person in question, things may be better. I also opened the account early on, things may be getting better. I have to steady myself to call TD Waterhouse back and see if I can make them fix this, finally.
I actually set up RDSP with systematic deposits for families through Mackenzie or BMO. I have done about 3o of these or so. I work very closely with a few of my local Down Syndrome and Autism groups on this. Many bank branches do not know anything about the RDSP- grants, bonds, claw backs, maximums, etc.
Yes, unfortunately things have not changed much. I was told by Waterhouse that I could do a deposit from the branch so I went to the branch thinking this was an easy task as well. Over an hour later, they told be that I could not deposit a cheque from my wife into this account even though the account was in my wife and my names.
They told me that I needed to bring a cheque made out to TD waterhouse and then they would send that to TD waterhouse for processing. I asked how that is different from me sending a cheque to TD waterhouse directly via the mail and the dumbfounded looks were staggering…
So, being a quick witted young man i suggested, why don’t we just transfer the money from my TD business account and then I could deposit the cheques in there and bobs your uncle…
After another phone call from the branch to TD waterhouse, they said that it was possible but i had to obtain a letter giving TD waterhouse permission to access the funds in my business account and that letter had to be signed and notarized (i think by god himself) before they could do it.
So after all this, i still can trade on my self directed RDSP as none of the online tools work, i need to phone in a trade and for the “convenience” of this TD wants to charge me 29 bucks a trade? I think this RDSP will remain unfunded while i look for a better alternative.
$29? I am only paying $9 a trade, try to get that, but yes, also when you find a better alternative, please come back and TELL ME, I will tell others too.
Thanks for the comment bigcajunman, do you have >50k in your trading accounts? If so that is probably why you are getting the $9 bucks, if not let me know as I will grind them to see if I can get that as well. If I find anything better i will let you know!
Yes, I have an RRSP account that allows me to have cheaper trading. Do they charge you the trading charge if you buy one of their Index Funds?
Our oldest daughter also has special needs and although I haven’t looked into it recently, at the time that we opened her RDSP in 2009, we could only do so through CIBC and not CIBC Investor’s Edge (the brokerage). However, it was fairly easy to open and set up the automatic monthly contribution. I usually phone them once a year to rebalance the investments and increase the monthly contribution, which is a 5 minute phone call. It may not be as bad as you think! 🙂
Glad to hear other banks aren’t as behind the times as TD!
Hi Big Cajunman, just heard you on Mostly Money, Mostly Canadian.
I have looked into it and I don’t believe you can set up a MCP into a RDSP at TD Waterhouse.
You can transfer cash (or securities in kind) from another Waterhouse account by calling a 1-800-465-5463
Or you can make lump sum deposits in the branch.
Now I think that children with disabilities go through enough, but wearing a Canadians Jersey will cause him to be ridiculed and bullied all through his schooling. 😉
Mark, good to know, because I called the TD Waterhouse help line and they were the ones who said I could ONLY do this at my local branch which is what caused this post! I will investigate further and see how it goes.
As for the jersey, his Grandma (who lives in Montreal) had it made for him, he has long since outgrown it! He wears Senators jerseys now.
I’m guessing the problems you’re running into come from the fact that banks can’t justify too much development effort to properly support RDSPs because the total amount of money invested in RDSPs is modest compared to RRSPs. Of course, that shouldn’t stop you from continuing to push for better service.
Agreed, the methodology for working with the RDSP in TD/Waterhouse seems to be Red Tape for the sake of Red Tape.