How do I decrease the fees I pay on investments held within my RRSP?
Fees for RRSPs vary widely. What you pay depends on where you open your RRSP account and how you invest your savings. There are 4 types of fees that should be reviewed on an ongoing basis:
- Opening an account – There is usually no charge to open an RRSP account. Some institutions may charge a small set-up fee.
- Annual administration or trustee fee – The annual fees for RRSPs can vary. If you have a group RRSP, your company may cover this cost for its employees. Ask your financial institution if they will waive the annual fee. They may agree to do this if you hold other accounts there or if you have enough savings in your plan. Make sure you understand what these fees are before you open an account.
- Investment costs – You pay a commission when you buy and sell stocks and ETFs for your plan. You may pay a sales charge when you buy mutual funds for your plan, or when you sell them. You’re also charged a management expense ratio (MER) if you hold mutual funds or ETFs.
- Other costs – Most plans charge fees for certain services. Examples: transferring money to another RRSP, closing the RRSP.
Visit GetSmarterAboutMoney.ca to learn more about investing and other topics. Speak with a registered financial representative for investment advice.