Between $50 and $150 per registered account, FCAC found, charged on every account moved
Canadian banks charge between $50 and $150 to move all the assets out of a registered account, and between $25 and $75 to move part of one.
The ranges appear in A Review of Banking Fees in Canada, which the Financial Consumer Agency of Canada (FCAC) released October 23.
The relinquishing bank charges the fee for each account moved, regardless of the balance in it.
Clients who hold several registered products pay the fee on each, and FCAC said the cumulative cost of transferring several accounts can be substantial and, in some cases, prohibitive.
Receiving providers may reimburse the fees in part or in full, though the agency said those offers are often conditional, time-limited or promotional, which adds complexity and uncertainty to switching decisions.
Key finding 16 of the review states that transfer-out fees can discourage account switching and weaken competitive pressure.
FCAC said the fees can also disproportionately affect clients with lower balances, who may not meet the minimum asset threshold to qualify for reimbursement.
A flat fee represents a larger share of their savings, and they may need more time to recover the cost.
The review covers RRSPs, RRIFs, TFSAs, FHSAs, RESPs, RDSPs, LIRAs and LIFs, products that typically hold cash deposits, GICs and mutual funds.
Under the Canadian Bankers Association’s Guidelines for Transfers of Bank Registered Plans, banks commit to process registered plan transfers within a maximum of seven business days under normal conditions and 12 during peak periods such as tax-return season.
That commitment does not apply to non-registered investment accounts.
The review noted that Budget 2025 announced the government’s intention to prohibit certain transfer-out fees to help Canadians switch between financial service providers.
FCAC set out 22 findings across nine fee categories, covering account maintenance, excess transaction, ATM, non-sufficient funds, overdraft protection, currency conversion markup, cross-border debit, transfer-out and prepaid payment product fees.
Multiple fees can apply to a single transaction, foreign exchange and cross-border debit fees can be embedded in the cost of a transaction, and usage-based fees can be difficult to predict when consumers cannot track how many transactions they have made.
Customers with lower incomes, less savings or heavier reliance on daily banking may be disproportionately affected by the cumulative cost, the Canadian Press reported.
“Canadians should be able to clearly understand what they are paying for banking services. When fees make the full cost harder to see, it affects both affordability and competition,” FCAC commissioner Shereen Benzvy Miller said in the agency’s release.
Finding 22 states that consumer-driven banking has the potential to improve transparency, support informed decision-making and facilitate switching by making it easier to compare alternatives.
The Canada Gazette published proposed regulations on June 27 that would place the framework under the Bank of Canada’s oversight and let individuals and businesses share their financial data with accredited service providers of their choice.
The Consumer-Driven Banking Act received royal assent in March.
Anthony Ostler, chief executive of the Canadian Bankers Association, did not address the findings directly.
“When money is put in a bank in Canada, deposits are insured and the bank is overseen by regulators who ensure Canadians are treated fairly and their money is secure,” Ostler said in a statement carried by the Canadian Press.
FCAC supervises the Commitment on Low-Cost and No-Cost Accounts and runs an Account Comparison Tool that lets Canadians compare account options, fees and features.
