Now the fourth national bank to begin offering RDSPs to Canadians, TD Canada Trust has announced that the RDSP is now available.  With Scotiabank likely to come on board on November 23rd of this year, this will bring the total to 5 banks offering the RDSP nationally, and one local financial institution in Quebec.  Currently, Bank of Montreal, Royal Bank of Canada, CIBC, TD Canada Trust, and FMOQ (Quebec) are all offering the plan, with totals nearing close to 20,000 accounts opened and nearly 40 Million distributed through Canada Disability Savings Grants and Canada Disability Savings Bonds.

Banks are now starting to become more streamlined around setting up the RDSP, and receiving Federal Government contributions into the plan.  As many of you probably noticed, it has taken a while for everyone to get up and running for the RDSP program, and we are glad to see that all five national banks will be offering the plan by the end of the year.

In terms of investments, the TD Canada Trust RDSP allows TD Canada Trust GICs and term deposits, as well as the growth potential and flexibility of TD Mutual Funds.  If you would like to view TD Canada Trusts information on the RDSP and visit their website you can go to and browse.

21 Responses to “TD Canada Trust begins offering RDSPs”

  1. Nancy

    Can anyone advise whether it’s possible to transfer money from an RRSP into an RDSP without penalty?

    • jcrocker

      Hi Nancy
      Yes. Parents and grandparents of a financially dependent* child or grandchild with a disability can arrange for some or all of their retirement savings to be transferred tax-free to the person’s RDSP after they (the parent or grandparent) pass away. The maximum transfer amount is $200,000 (minus all personal contributions and rollover transfers that have previously been made to the RDSP). The Government will not pay matching grants on any transferred money.

      This can really reduce the taxes owed on the retirement funds. Normally RRSPs (and RRIFs) are collapsed at death and the entire amount becomes taxable income in one year. However, when the funds are passed into an RDSP no tax is payable. Then, when the funds are withdrawn from the RDSP, they are taxable in the hands of the beneficiary. In most cases they will be withdrawn over many years, taxed at the beneficiary’s tax rate, and little tax will be paid.

      (*Dependency is determined in one of two ways: either there is a relationship of dependency—the parents or grandparents provide care or financial support—or the beneficiary is financially dependent. Generally, a disabled child or grandchild is considered to be financially dependent if the child’s income for the year preceding the year of death was less than $17,621 (for 2010). That being said, a disabled child who has a higher income level may still be considered financially dependent, but only if such dependency can be factually determined. )

  2. jessica

    hi all,
    It has lot of useful & interesting data.
    Compare ISAs

  3. Sheri

    Use a qualified financial advisor. It is their job to make sure everything goes properly for you. The fees are everywhere. If the bank fails to show you believe me, they are in there.
    A qualified advisor meets with many companies offering RDSPs. There are a few that are just getting into it and the investment choices are very nice.
    Some conservative, some not so. Depending on your time horizon a qualified advisor can tailor a program to suit your individual needs.
    A bank will just slide you into the flavour of the week.

  4. Jason Kaye

    Dave I feel your pain, I have been with RBC since the start of the RDSP. You have worse problems that I ever did, I do everything by phone and they even came to my home a couple times. Just wait till you can transfer and all the problems it will cause, the receiving bank should reimburse any fees but that is yet to be seen. It took 8 months for RBC took get it right and they still have a little ways to go. I pointed out to TD that if I would have waited for them it would have cost me a grant, bond and growth totalling around $5500.00, they had no comment. Remember the cutoff is dec 31 for this years grant and bond.

  5. Dave

    I just typed a hole note and lost it, But i will try this again.

    I waited for the TD to start this RDSP out of loyalty, So this being there first applacation going down the shoot as they say. Because of this the officer of accounts went over and over and then we went over it again and sent it off, being told that most likl
    ely will see my account add to my others the next day. Thinking O.K. after 3 days they are going over it with there lawyer and that to make sure everthing is right. So the 4th day i go in and was told just that and she had everything infront of her and all the info looks good and everthing was there, One for me and One for my Son. The branch worker said that if it was not done by this Tuesday she will phone them to see what the heck is up, Ha Ha., But Tuesday sould be a go. This being a Thursday i call up my sons RESP accounts with anoughter account to see how much i can tranferr to this other account as it will pay 3×1 and a better deal right now. That all set-up as i had the account nuber for the RDSP for them to tranfer at no fee!

    Well, after 4 days and un able to go to the bank i finlly get there to find out they lost my photo copy of my ID and they needed to no were i work. Haveing applyed with my income on Dissabity I WORK NO WERE!! So i walk home get my drivers Licance and my copy of the applacatoin that has a photo copie of my liecence right in it and they say was never sent. So that’s done everthing O.K. the next day everthing will be done. Well next day nothing no calls ever come nothing, so i go back and they say everything looka good but i am now on the bottom of the list of files as there are 1000 coming in every day. After some talking for the bank Maniger they will move me up to the top and get it done right away. So bank maniger says that there by this afternoon or first thing next morning.

    Two more day after that and TOMORROW i am phoneing the RBC after they said they will have me up and running in two buiness days and if i decide to move it ,then they will only charge me $50. not the $135.00 that the TD will charge if you do decide next year to move.

    Just a thought….. If i had $50,000. or more would i have had id done in two-day, and with a nice pen too instead of a prefabed thank-you for your buiness, we appressate you!!

    Sorry for my litatory sins. and remember all the TRAILING FEE”S


  6. Mary

    I have an RDSP with BMO (at the time they were the only bank offering the RDSP).

    However, I have been waiting to transfer my account to td (love the e-series funds) so I have not done anything with the money in my account yet. I will call TD’s 1-800 number tomorrow to ask a few questions. Could anyone please keep me updated if they find out more information as to when transfers could be done? I am eager to invest my money with TD

    • Doug Brodhead

      Hi Mary,
      From what I have heard, most banks will have their systems for transferring up in the next few months, but as you can imagine, they are probably not in a rush to set this up. Keep checking with your bank of choice to see when they might be able to transfer RDSPs. I would imagine that most will have it up and running early in the new year.

    • Sheri

      Hello Mary.
      If you are anxious to transfer your money out of BMO (as am I) be careful when meeting with anyone from the banks. The banks are trained to place you in a specified selection given to them. If you want to be sure you are getting exactly what you want, be sure to speak to a qualified financial advisor who will have access to those funds anyways. He/She may have a few other choices or a blend that may meet your wants .

  7. anna

    interested on rdsp

    • Jason Kaye

      Hi Anna,
      I am sure Doug can help you with any questions and you could call some of the banks on thier 1-800 numbers and they will help you as well maybe sending someone to your home.

  8. Jason Kaye

    This is what TD Waterhouse sent me, looks like everyone is getting the same info.

    The ability to transfer RDSPs will be made available at a later date. This service is not available to any Financial Institutions at this time. The government is in the process of developing the system capabilities to accommodate this type of transfer.

    I did ask the government about transferring monies from an RRSP to a RDSP, but this likely not to happen as the RRSP is pre-tax money and the RDSP is after-tax money. So I was told I could withdraw funds from my RRSP, pay the taxes, then put the now after-tax funds into my RDSP.

    • Doug Brodhead

      Hi Jason,
      The Conservative Government did include the RRSP rollover into an RDSP in their party platform during the last election. I think there is probably still potential for this to happen.

  9. Dennis

    BMO Told me that transfers will not be available until spring.

  10. Shane

    Hey Mike,

    Just called WaterHouse this morning and oy their people
    don’t know much about the RDSP accounts. Anyways, turns out
    none of the banks can do transfers at present so that’s
    that for now.
    I was told efunds will be available in these accounts
    though, definitely a good thing.

  11. Shane

    Is an RDSP with TD the same as with TD WaterHouse? I have
    been waiting for TD to come out with an RDSP offering so
    wondering which offers the ability to purchase TD efunds
    (their low-mer index funds).

  12. Ryan

    I believe this new offering from TD Waterhouse is a positive thing for most RDSP holders. The mutual fund offerings from one particular Bank does not provide a sufficient enough diversification to ensure one can fully benefit in the long term. Even if you are not the most savvy investor or are unwilling to take the big risks in managing your own money, having the ability to choose the best in class mutual fund or investment is so important for each of us to ensure we maximize our total return of our retirement savings.

    My main problem is with the government department responsible for making the regulations and overseeing the RDSP programme. While they have done some very good things in establishing the programme, they have dropped the ball in regard to allow us the ability to fully manage our own particular RDSP accounts. I just found out today that there is no regulation, forms, or process that could allow anyone to transfer their own RDSP account from one financial institution to another. This leaves most of us who signed up early without the ability to take advantage of using a brokerage firm such as TD Waterhouse for the considerable time-being. This lack of portability should not be allowed to happen within the RDSP programme.

    • Doug Brodhead

      Hi Ryan,

      Actually, the legislation does allow for the transfer of RDSPs from one financial institution to another. The relevant section around transfers can be found within the Income Tax Act, Subsection 146.4(8), which states:

      (8) An amount is transferred from a registered disability savings plan (in this subsection referred to as the “prior plan”) of a beneficiary in accordance with this subsection if
      (a) the amount is transferred directly to another registered disability savings plan (in this subsection referred to as the “new plan”) of the beneficiary;
      (b) the prior plan is terminated immediately after the transfer;
      (c) the issuer of the prior plan provides the issuer of the new plan with all information in its possession concerning the prior plan as may reasonably be considered necessary for compliance, in respect of the new plan, with the requirements of this Act and with any conditions and obligations imposed under the Canada Disability Savings Act; and
      (d) where the beneficiary attained the age of 59 years before the calendar year in which the transfer occurs, the issuer of the new plan undertakes to make (in addition to any other disability assistance payments that would otherwise have been made from the new plan in the year) one or more disability assistance payments from the plan in the year, the total of which is equal to the amount, if any, by which
      (i) the total amount of disability assistance payments that would have been required to be made from the prior plan in the year if the transfer had not occurred exceeds
      (ii) the total amount of disability assistance payments made from the prior plan in the year.

      From what I have heard, because of the quick roll-out of the RDSPs, most financial institutions are not set up to transfer RDSPs (yet), but should be soon.


  13. Mike

    Has anyone done a transfer yet from one bank to another? I`m thinking about transfering to TD or CIBC in the not too distant future.

    • Pat

      Was just on a conference call. Transfers will not likely be available until Spring 2010. Gov’t has not set up the procedures for this yet.

  14. Jason Kaye

    TD Waterhouse has now started offering an RDSP, it offers many more choices like stocks, bonds, ETFs and a wider range of mutual funds.
    In some ways it is superior with these extra choices, but at the same time it could be a drawback.
    If too risky of investments are used like many retirees are finding out now they could suffer an ill timed market correction or stock loss. I suffer from MS which affects me physically and mentally, even with my years of investment knowledge I am still careful in my investment selection. The mental affects could lead me to making some unwise decisions out of desperation or could lead to some Advisor Abuse in some rare cases.
    It is very important to have an Investment Plan based on your risk profile, not your Advisors, along with your goals and medical prognosis. Also have an Advisor you can trust that will re-balance your account as needed, having friends and/or family helping you keep an eye on things may help you sleep at night.
    This is a wonderful gift the government has given us, just remember to treat it as so.


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