Nov 8, 2026
If you’re like many Canadians, you likely opened an RRSP at your bank branch years ago, then at some point added a TFSA and then, eventually, an RESP when the kids came along. Now a lower-fee platform has caught your eye, but moving all three could cost up to $450 before a single dollar changes hands.
Now, Ottawa wants to scrap that exit toll. Recently, Mark Carney’s federal government released draft rules that would stop banks from charging you to move investment accounts to a competitor.
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But there’s a catch. The ban isn’t law yet, it has no start date and it won’t erase every cost of switching. Knowing which costs disappear and which stick around is what tells you whether to move now or stand by.
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What would Ottawa’s proposed ban actually cover?
The Department of Finance released draft regulations that would stop banks from charging a fee when a client moves an investment account to a different financial institution. The rules would apply to registered accounts, including RRSPs, TFSAs and RESPs, as well as non-registered investment accounts at Canadian banks.Those fees typically run $150 per account.
The draft regulations follow through on a Budget 2025 commitment, and it would also set timelines for key stages of a transfer, addressing delays as well as cost.
The Financial Consumer Agency of Canada (FCAC) would be in charge of enforcing the ban. Fees on everyday chequing and savings accounts are not affected.
Banks have pushed back on moves to remove fees before. A spokesperson for the Canadian Bankers Association has said banks are “clear and transparent about the fees charged.”
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How much does it cost Canadians to leave a bank today?
The answer depends on the bank and the account. In a review of banking fees released Oct. 23, 2026, the FCAC found banks charge $50 to $150 to move everything out of a registered account and $25 to $75 for a partial transfer. The fee is charged per account,no matter the balance.
At Scotiabank, for example, the published fee to transfer a TFSA or an RSP to another institution is $150.
The costs add up quickly, especially if you’re moving multiple accounts. Moving an RRSP, a TFSA and a first home savings account (FHSA) out of one bank could cost $150 to $450 at those rates. The FCAC said the cumulative cost of moving several accounts can be substantial and, in some cases, prohibitive for some Canadians. It also concluded that these fees can discourage switching and weaken competition.
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Li Zhang, director of social impact at Chartered Professional Accountants of Canada, told CBC News the transfer fee “makes a huge difference on Canadians who are really struggling with affordability.”
Should you wait for the ban before you switch?
Just because a ban on fees might be coming in the future doesn’t mean you should hold off on making the switch now. There’s no target date included in the draft regulations for when the fee ban could come into force, and a department official says a 30-day consultation period will begin after Saturday. Final rules won’t come until after that.
In the meantime, many receiving firms already cover the cost. The Department of Finance estimates about 90% of investment account transfers go to challenger institutions such as Wealthsimple, many of which reimburse the fees banks charge. The department pegs the savings for consumers from the ban at about $1.1 million a year. That modest figure may partly be explained by how often the fee is already being absorbed.
So the calculation is fairly simple. If your new provider will reimburse the fee, waiting gains you little, if anything at all. If it won’t, or your balance falls below its reimbursement minimum, waiting could save you $50 to $150 per account. And if you’re paying higher ongoing fees where you hold your investment accounts now, delaying the move could cost you more than the transfer fee itself.
What costs won’t the ban erase?
The proposal in Budget 2026 targets the flat administrative fee only. If investments are sold or cashed in during the move, product-level costs still apply, including trading commissions, early-redemption penalties on guaranteed investment certificates (GICs) and mutual fund sales charges.
The fee ban would also apply only to federally regulated banks. Fintechs Canada, an industry group representing financial technology companies, is urging provinces to extend similar protections to the financial providers they oversee.
What to do now
- Look up the transfer-out fee for each account in your bank’s fee schedule
- Before you consider a move, ask your prospective new provider whether it reimburses transfer fees and what minimum balance applies
- Where possible, request an in-kind transfer, which moves your investments as is instead of selling them
- Check maturity dates on your GICs and any mutual fund sales charges before you move
- Keep the statement showing the fee in case you need it for reimbursement
- If nobody will cover the fee and you’re in no rush, watch for the final regulations before you make a move
For most Canadian savers, the decision comes down to one question: who is paying the exit fee? If it isn’t you, there’s little reason to wait for the ban to take effect. If it is on you, a few months of patience could keep $150 or more per account in your pocket. As Adriana Vega, executive director of Fintechs Canada, said in a statement: “Canadians should not be charged to move their own money.”
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Leslie Kennedy served as an editor at Thomson Reuters and for Star Media Group, followed by a number of years as a writer and editor and content manager in marketing communications, before returning to her editorial roots. She is a graduate of Humber College’s post-graduate journalism program and has been a professional writer and editor ever since.
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