I write specific articles yearly as an update on previous reports. Not many things change in my financial world. Unfortunately, my ability to deposit in my son’s RDSP is one of those.
Some of my yearly rants:
- Yearly CPP and EI Maximum updates
- RDSP Grant levels for my son (i.e. Grant entitlements)
- My somewhat irregular Moneytalk posts
RDSP Deposit for a TD Direct Investing Account
For those unsure, let me recap. I cannot make a deposit directly to my son’s RDSP (a TD Direct Investing account). I must first put money in my Direct Investing trading account. Once the money is in the trading account, I must call Direct Investing phone service to transfer the funds to my son’s RDSP.
Over the years, I have had many reasons given. I received an update from someone who has an RDSP where my son is the beneficiary, who can direct deposit to that account. I was confused by this policy, so I continued investigating why I could not make the deposit yearly to Direct Investing.
This year’s response follows:
Only the account holders can transfer cash to the RDSP account.
This would be the same for any registered plan account.
Due to online privacy and security concerns, trade and account related inquiries are handled by our investment representatives. By phone, we can securely access your profile to assist accordingly. If you feel that the representative has not adequately addressed your concern, you may ask to speak with a Manager.Response from TD Direct Investing
This statement lines up with what I have found out. It does not make me very happy, as I think I can quickly deposit into any RESP directly. I did that for my daughters and am doing it for my son as well.
Given my son now has a TD savings account, I will test the validity of this explanation. I will attempt to set up a transfer to his RDSP. I will also need to file his taxes for next year, which is another story.
Workaround for RDSP issue
Addendum, I forgot that two smart folks, Bobby Vu and Steven Reeves, last year, commented that I could try “Paying it as a Bill.” The plan would entail setting up a bill payment to TD Direct Investing with my son’s RDSP account number. I have set this up, and it works. I can deposit it directly to my son’s RDSP.
Previous Discussions on Topic
- RDSP and TD Aggravations pretty much the day after I opened the account, I noticed the deposit issue.
- Not a very big step taken, in fact, none at all, really, RDSP with TD Direct Investing a Step in the Right Direction
- RDSP update and a TD Explanation in 2013 TD claimed they would “fix” the deposit issue. As you have read, they didn’t.
Related RDSP Pages
- The RDSP Page is the Overview of all articles I have written about the RDSP (including DTC and other areas).
- RDSP : Laying the Ground Work (first things first)
What needs to be done BEFORE you can apply for a Registered Disability Savings Plan? A major aspect of this is the Disability Tax Credit (DTC), make sure you click on this page to get started.
- RDSP : Working with The Account
Now that you have succeeded in getting your Disability Tax Credit (DTC) you need to open an RDSP account with a bank or such, but how is that done? It is not as easy as you might think. This page outlines many of the issues that have arisen for my family working with an RDSP account.
- Disability Tax Related Topics
Thanks for my RDSP and DTC work I then had to learn a great deal about the tax implications of having a disabled child.
- Autism Specific Articles
Being the proud Father of a child on the Autism Spectrum I also ended up writing a great deal about Autism specific things as well.
- RDSP : Laying the Ground Work (first things first)
I tried that with $10 on November of 2020, I have not seen them since them
Had to do the large route and thinking on moving to national bank now that they have 0 commission trading
That is never easy, we do know that this works for TD account holders and possible on CIBC too.
I simply send a cheque in the mail to TD Waterhouse on Bloor Street in Toronto and they deposit it each time. I am not the holder of the RDSP, but it is still accepted.
I tried depositing the cheque through a TD branch, and they asked about 5 different people in the branch and then told me “we can’t do that” and asked me to send the cheque to head office in Toronto.
We have nothing with TD other than the RDSP account.
Glad that works, you could also then pay into it as an on-line bill from another bank. I have confirmation it works from CIBC. Simply create the on line bill payment to TD Direct Investing, with the account number and it should work. You could test with say a $10 payment?
I have had a TD Direct Investing RDSP account for my son for several years now. I have no other TD accounts.
Once a year, I go to a TD bank branch with a cheque made out to myself (as I am the holder of the RDSP). I give them the RDSP account number and watch for about 15 minutes as they consult every manager in the branch. Eventually they accept it and within a week the deposit shows up in the RDSP account. Never has it gone astray.
I learned that all I needed to do was set up a “Pay a Bill” (evidently works for TD accounts and at CIBC), to TD Direct Investing, with my son’s RDSP account number, and it eventually shows up. I feel kind of foolish after a lot of complaining on my part (should have tried that).
I tried the “Pay a Bill” method earlier this year. I got a call from TD saying that the transfer method was invalid, it would not attract the matching grant and eventually the funds would be returned. Two weeks later, another agent told me the opposite and confirmed the transfer was valid. Two months later, the funds were still there and the matching grant had been deposited. Success! Thank you BCM and Bobby Vu!
I continue to run into these type of issues. I want to make a payment to my Tangerine Line of Credit from my TD Chequing, there is no way to pay it as a bill. I can (however) set up a transfer at Tangerine from my TD account to the LOC. Banking these days seems to be an exercise in trying to make things more obfuscated, so you can’t pay off debts easily? That reads as very paranoid, but it is how I feel right now.
My child’s RDSP is self administer with NBDB. I am the holder and I have trading authority on the RDSP. Deposits into an RDSP must have the approval of the holder. If you are the holder you automatically have the right to deposit.
Since I have trading authority on the rdsp I can make trades and I do that on line. I am surprised that TDW seemingly does not offer the same level of convenience. Are you the “holder” and do you have trading authority on the RDSP account?
Not sure what the holder term means, but yes I have trading authority.