Scotiabank iTrade RESP … they are sneaky little buggers with their hidden fees.
Posted by peeterjoot on August 21, 2012
Watch out if you are considering opening a Scotiabank iTrade RESP account. I got the email below from Scotiabank where I currently have a very minimal RESP account. I’d opened this account with the intention of increasing it, assuming I’d eventually have the funds to do so, but will now likely close it out of principle and look elsewhere:
“As a valued Scotia iTRADE® client, your continued satisfaction is important to us.
That’s why we’re writing to you today to remind you that your combined assets with Scotia iTRADE need to reach certain levels as of August 31st, 2012 for you to avoid an annual fee charged to your registered account(s) on September 15th, 2012 (covering a one year period to September 14th, 2013).
Here is the breakdown for meeting asset levels to avoid the fee:
• If you hold an RESP account with Scotia iTRADE, you need to have $15,000 or greater in combined assets with Scotia iTRADE to avoid a $25 annual fee (plus HST) charged to your RESP account(s) on September 15th.
• For registered accounts, other than RESP accounts, you need to have $25,000 or greater in combined assets with Scotia iTRADE to avoid a $100 annual fee (plus HST) charged to your registered account(s) on September 15th.
With our powerful trading platforms, easy-to-use trading and investment tools, and friendly customer service, consolidating more of your assets with Scotia iTRADE is a wise decision.
We appreciate your business and will continue to offer you robust investment solutions to help you achieve your investment needs.”
Somewhere in the fine print of the Scotia iTrade agreement must be some statement of fees for less than this minimum “$15,000”. When I read the fine print, I saw the fees schedule for the per trade fees, but not this one.
I can summarize this email from Scotiabank, “As a valued iTrade customer, we will charge you fees that will encourage you to look into our competitors banking products.”