RBC Direct Investing to offer 1% again

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Postby AltaRed » 27 Aug 2009 11:47

The lists come up for me too. But cannot buy.
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Postby broke » 27 Aug 2009 12:04

AltaRed wrote:The lists come up for me too. But cannot buy.


I had picked a GIC at random and was able to get to step 2 of 3 but I wasn't about to hit the confirm button to see step 3. :wink:
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Postby AltaRed » 27 Aug 2009 12:40

The story as RBC DI Tech Support has since articulated to me is an issue this week with some accounts using IE8. They say they are working on a permanent fix. In the meantime, Tech Support had me jump through a number of hoops including setting up a Practice Account that solved the problem. Go figure...

FWIW, the RBC DI tech support folks were helpful and courteous.
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Postby ig17 » 13 Sep 2009 14:52

RBC DI is now available as a bill payment option at TD and President's Choice. This wasn't the case last fall when 1% bonus offer went into effect.

Tip: RBC DI site displays 8-digit account numbers. TD and PCF systems require 10-digit numbers. To find the two missing digits, review the papers that RBC DI sent you when you opened the accounts.
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Postby Bylo Selhi » 07 Oct 2009 08:45

In this month's e-statements:
New Interest Rates on Debit Balances
Effective December 22, 2009, debit balances carried in any account not approved to borrow against investments held in the account will be charged an interest rate of 21% per annum.These accounts include cash investment accounts, Retirement Savings Plans (RSP), Retirement Income Funds (RIF), and Tax-Free Savings Accounts (TFSA).

For full details on RBC Direct Investing debit interest rates please visit www.rbcdirectinvesting.com/debitinterest.

The interest rates for margin accounts, the only accounts approved to borrow against the investments held in the account, will remain unchanged.

Is this a new [s]demonstration of unbridled greed[/s]innovatation on RBCDI's part or is this the norm at other brokerages? The 21% rate seems a tad excessive considering what they pay on cash balances (i.e. less than even a measly 0.0021%.)
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Postby timbr » 07 Oct 2009 21:03

I don't think RBCDI is that innovative in this area. TDW already has this in place:
3. Interest on Debit Balances for TD Waterhouse Discount Brokerage
Cash Accounts: Interest will be charged on Canadian Dollar Direct Trading
account debit balances at The Toronto-Dominion Bank’s (TD) prevailing
overdraft interest rate and on U.S. dollar debit balances at the Bank’s U.S.
Dollar Base Rate, specified by the prevailing interest rates, and subject to
a minimum charge as specified by TD Waterhouse from time to time.
Interest will be charged on President’s Account debit balances at TD’s
prevailing Canadian Prime and/or U.S. Dollar Base Rate plus a specified
percentage per annum at the rate specified by the prevailing interest rates.
Interest will be calculated on the daily closing balance in the account
and is payable monthly. The minimum overdraft charge will be the charge
specified by the prevailing interest rates.

I couldn't find what the overdraft rate actually is, but I assume it would be in the same ballpark as DI's.

I don't see any equivalent at iTrade, but they also make it difficult to create a debit balance in a cash account. You cannot enter an order for which you don't have sufficient "buying power".
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Postby IdOp » 08 Oct 2009 12:43

timbr wrote:I couldn't find what the overdraft rate actually is ...

I also couldn't find the rate charged on negative balances for non-margin accounts at the Waterhouse website. But, I just got my September statements and they're listed there. For a president's account they are:

C$ cash: 5.25%

U$ cash: 6.75%

I suppose they could adjust them at will. (In any case I've no plans to sample these offerings. ;) )
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Postby Bylo Selhi » 08 Oct 2009 13:19

IdOp wrote:C$ cash: 5.25%
U$ cash: 6.75%

That's a far cry from 21%, especially considering that they're effectively making a fully-secured loan (unless all you have in the account is junk -- highly unlikely if you're a PA.)

Also worth posting is the other side of the spread. And no, those aren't misprints. Suddenly even MIP510's measly 0.75% doesn't seem too shabby.
Code: Select all
Interest earned on positive cash balances
AUG 15 - SEP15                      0.00%
Yield rates this month
TD CDN MNY MKT-I SER'FRAC           0.12%
TD US MNY MK U$-I SE'FRAC           0.08%
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Re: RBC Direct Investing to offer 1% again

Postby zeno » 03 Mar 2010 21:20

Can finally deposit to RBC Direct RSP account from non Royal bank account!

In response to my latest query about electronic transfers from non-RBC banks, I finally got a response other than "mail us a cheque":

As you are aware, it is not currently possible to link a bank account at a financial institution other than RBC Royal Bank to your investing account. I can certainly offer you some convenient alternatives that may be of interest:

- Recently, RBC Direct Investing has been listed as a bill payee for online bill payments to RBC Direct Investing accounts. While all accounts are not listed for, RSP accounts have been enabled to accommodate for these transfers. Should you find RBC Direct Investing in the list of bill payees at your opposing financial institution, you will require the full 10 digits of your RSP accounts which are as follows:


Note the restriction to RSP accounts. Taxable accounts cannot be set up as online bills.
Also note that they require a 10 digit account code. Online my account codes only have 8 digits, but the RBC Direct rep kindly provided me with the 10 digit equivalents, but I expect they are on my paper statements.
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Re: RBC Direct Investing to offer 1% again

Postby ockham » 28 Mar 2010 13:31

My accountant called me into the office on Friday. Explained that the 1% deposited to my Holdco account was an income item, therefore, taxable, therefore, what was ~$2000 would shrink to ~$1000 after tax. I explained that RBC represented that the 1% was not a taxable receipt. Accountant remained firm that, for a Holdco., it would have be appear as an income item in the financial statements and hence would be taxable. Hmmm. Any ideas??
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Re: RBC Direct Investing to offer 1% again

Postby Bylo Selhi » 28 Mar 2010 14:04

ockham wrote:Any ideas??

A businessman was interviewing job applications for the position of manager of a large division. He quickly devised a test for choosing the most suitable candidate. He simply asked each applicant this question, "What is two plus two?"

The first interviewee was a journalist. His answer was, "Twenty-two".

The second was a social worker. She said, "I don't know the answer but I'm very glad that we had the opportunity to discuss it."

The third applicant was an engineer. He pulled out a slide rule and came up with an answer "somewhere between 3.999 and 4.001."

Next came an attorney. He stated that "in the case of Jenkins vs. the Department of the Treasury, two plus two was proven to be four."

Finally, the businessman interviewed an accountant. When he asked him what two plus two was, the accountant got up from his chair, went over to the door, closed it, came back and sat down. Leaning across the desk, he said in a low voice, "How much do you want it to be?"

He got the job.
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Re: RBC Direct Investing to offer 1% again

Postby adrian2 » 28 Mar 2010 15:22

ockham wrote:My accountant called me into the office on Friday. Explained that the 1% deposited to my Holdco account was an income item, therefore, taxable, therefore, what was ~$2000 would shrink to ~$1000 after tax.

Cut that shrinkage in half; the corporate tax rate on interest is about 25%, not 50%.

I'm not an accountant, but I agree that for a corporation the rebate has to find its way to the balance sheet. I would categorize it as a negative fee, in other words a negative expense, or as interest earned as suggested by your accountant.

Look at the bright side: it will increase retained earnings and future dividend tax credits when it's paid out.
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Re: RBC Direct Investing to offer 1% again

Postby ockham » 28 Mar 2010 15:53

Accountant seemed quite okay with omitting the 1% on our personal returns (as I instructed). Problem seemed to relate to reporting requirements for Holdcos. (I don't recall this being an issue two years ago when I collected the 1% from RBC the first time around).
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Re: RBC Direct Investing to offer 1% again

Postby adrian2 » 28 Mar 2010 17:35

ockham wrote:Accountant seemed quite okay with omitting the 1% on our personal returns (as I instructed). Problem seemed to relate to reporting requirements for Holdcos. (I don't recall this being an issue two years ago when I collected the 1% from RBC the first time around).

On the personal side, you don't file a balance sheet which has to agree with the income statement.
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Re: RBC Direct Investing to offer 1% again

Postby marty123 » 05 May 2010 16:26

Anyone heard of documented or undocumented promotions this year? The 1% would be great, but anything better than transfer fees and a thank you would be great. I even broke down and submitted myself to an RBC customer service phone survey a few weeks back, so I could drop a (not so) subtle hint ("Have someone call me when you have RBC DI promotions"). No success.

I'm interested in the potential savings for US$ stock purchases, but I need a bit more convincing to move to RBC DI. Volume-wise, the accounts qualify for the Royal Circle.
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Re: RBC Direct Investing to offer 1% again

Postby canak11 » 05 Jan 2011 21:33

Any promo for 2011? would like to take it.
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Re: RBC Direct Investing to offer 1% again

Postby adrian2 » 11 Jan 2011 13:27

canak11 wrote:Any promo for 2011? would like to take it.

As mentioned elsewhere: ING mutual funds promo, for RRSPs only.

Invest in The Streetwise Funds® before March 1st, 2011 and get bonus units equal to 1% of the value of your contributions.

That's an extra $10 for every thousand dollars you invest, up to $100*. Take the straightforward route for your long term investing. The Streetwise Funds are Balanced Index Mutual Funds with a powerful investment strategy that makes them ideal for long-term investing.

* Limit of one bonus offer per Client on new Streetwise Funds contributions made between January 1st and March 1st, 2011 up to $10,000. The bonus amount will be paid as bonus units equal to 1% to a maximum of $100 and will be credited within 90 days of the offer expiry date, provided that your Streetwise investment is still in place at the time of bonus payout.
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Re: RBC Direct Investing to offer 1% again

Postby westinvest » 11 Jan 2011 15:18

BMOIL has a $150 bonus plus 150 free trades for new accounts / deposits of $100,000
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Re: RBC Direct Investing to offer 1% again

Postby marty123 » 17 Jan 2011 10:41

canak11 wrote:Any promo for 2011? would like to take it.

Ditto. I'm finally pulling the plug on iTrade, and I've made an appointment at my RBC branch to create RBC DI accounts(*). I've already waited too long, and will simply take the free transfer. If anyone knows of anything upcoming, I wouldn't mind hearing about it. Size of assets exceeds Royal Circle threshold.

(*): I know it will be a bigger hassle at the branch than over the phone, but I'm doing it as a favour to my local banker.
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Re: RBC Direct Investing to offer 1% again

Postby Bylo Selhi » 17 Jan 2011 11:02

marty123 wrote:I know it will be a bigger hassle at the branch than over the phone, but I'm doing it as a favour to my local banker.

Actually it should be easier through your local bank branch than over the phone. Download the forms off the RBCDI website. Fill them in as much as you can at home. Bring along photocopies of your iTrade statements, indicating which securities you want transferred. Let the branch submit the completed paperwork via inter-branch mail. Having your local branch vouch for you, i.e. that you're not a money-laundering terrorist scumbag, should go a long way in easing the RBCDI compliance department's angst over compliance with FINTRAC ;)
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Re: RBC Direct Investing to offer 1% again

Postby marty123 » 17 Jan 2011 11:43

Bylo Selhi wrote:Download the forms off the RBCDI website. Fill them in as much as you can at home. Bring along photocopies of your iTrade statements, indicating which securities you want transferred. Let the branch submit the completed paperwork via inter-branch mail.

I can guarantee you that I'll be showing up with my forms, and the branch rep will retype the information in the system while we wait. She will then spit out identical forms out of her printer for us to sign. That's standard procedures to get the info in the system as quick as possible. On the fly validation also reduces the risk of missing information or steps. Paying someone $30/hr while the client wait is less costly than risking rework after it's processed by a $15/hr clerk a few days later, or so they say anyway. We experienced it when we tried to be proactive and did exactly that to open a corporate bank account a few months ago. What we thought would be a 15-minute process took over an hour. With up to 7 accounts to move, including 3 contributors, 5 beneficiaries and a corporate entity, I suspect we'll be there for 2 hours :(

I intend to take that approach again (pre-filling the forms), as you suggest. If anything, it speeds things up for the branch rep. I'll report back on how it happens.
Last edited by marty123 on 17 Jan 2011 11:49, edited 1 time in total.
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Re: RBC Direct Investing to offer 1% again

Postby Bylo Selhi » 17 Jan 2011 11:48

marty123 wrote:I can guarantee you that I'll be showing up with my forms, and the branch rep will retype the information in the system while we wait.
That wasn't my experience when I took advantage of their last 1% offer a couple of years ago even though I had no existing relationship with RBC at the time. The branch receptionist referred me to a financial planner who quickly skimmed through my forms, made a photocopy of my driver's license, then put everything in an inter-office mail envelope. A few days later I got a welcome letter and login info to my new RBCDI account.
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