Wealthsimple Slams Big Bank Exit Fees, Pushes Ottawa to Step In

Canadian fintech Wealthsimple is taking aim at the fees big banks charge when customers move their money.

The Toronto-based company told Ottawa in this week’s budget consultation that transferring savings from accounts like RRSPs or TFSAs has become expensive. A decade ago, those charges were often nothing or capped around $75. Today, some banks ask for as much as $150 per account.

The six largest banks in Canada — including RBC and TD — control most of the sector. That dominance, Wealthsimple argues, leaves customers stuck paying steep costs just to switch. To attract new users, the company says it helps cover some of the exit fees.

“If the government were to take action, it would make it easier for clients to overcome that friction,” said Jessica Oliver, Wealthsimple’s head of governm