TD RDSP: how to open one, what it costs and how it works
What a TD RDSP is and who it suits
How a TD RDSP works: who can open one at TD Direct Investing, what it costs, what it can hold, and how to contribute, withdraw or transfer.
TD offers an RDSP through TD Direct Investing, its self-directed brokerage. That makes it a do-it-yourself account: you choose the investments and place the trades. This guide covers who can open a TD RDSP, what TD charges, what the plan can hold, how money goes in and out, and what to check before committing. Fees and rules were read from TD and Government of Canada pages on October 1, 2026.
Does TD offer an RDSP?
Yes. TD offers a self-directed RDSP through TD Direct Investing, and the Government of Canada lists TD Waterhouse Canada Inc. among the organizations that issue plans. TD's Canada Trust RDSP page leads to the same product, so there is one TD plan to evaluate, not a separate branch version.
Self-directed means the holder applies for the plan, picks the investments and decides when to buy. TD's fee disclosure calls the product the TD Waterhouse Disability Savings Plan and states that RDSPs there can only be held in Canadian dollars.
If you want someone to choose the investments or walk you through every form, compare TD with an advisor-led issuer first. Our RDSP provider comparison sets TD beside other options.
Who can open a TD RDSP?
The beneficiary must be approved for the disability tax credit, be a Canadian resident, have a Social Insurance Number and open the plan before the end of the year they turn 59. TD's online application asks you to confirm that the Canada Revenue Agency told you in writing the beneficiary is DTC-eligible.
The beneficiary is the person who will receive the money. The holder opens and manages the plan, and the two can be the same person. Both need a valid SIN. A legal parent or guardian can hold a plan for a child, and TD's RDSP article says a person or institution legally authorized under provincial or territorial law can act for an adult who cannot enter a contract.
A beneficiary can have only one RDSP. If a plan already exists at another institution, the way to use TD is a transfer, covered below, not a second account.
Approval is the first gate. If the DTC has not been granted yet, the T2201 comes first, and our T2201 guide explains how to apply. Grants and bonds are paid only until December 31 of the year the beneficiary turns 49, so the window for matching money is limited.
How do you open a TD RDSP?
Start TD's online application for the self-directed RDSP, confirm the two eligibility statements, and apply for the Canada Disability Savings Grant and Bond when you open the plan. You can also call TD Direct Investing at 1-800-465-5463. The Government of Canada says you do not need an existing account with the institution.
Have these ready before you start:
- The CRA letter confirming the beneficiary's DTC approval.
- Social Insurance Numbers for the beneficiary and the holder.
- Details of the holder's legal authority, if the holder is not the beneficiary or a legal parent.
- A way to fund the plan, such as a TD account or a cheque.
We found no published processing time for TD RDSP applications. Public forum posts describe slow openings, but those are individual experiences and not a TD service standard, so ask TD for an expected timeline and a contact for follow-up.
Apply for the grant and bond at opening. The amount depends on family income reported on the tax return filed two years earlier, and our RDSP grant and bond guide gives the current matching tiers. TD's Canada Trust explainer still labels its income thresholds as indexed to 2015, so use current figures from the Government of Canada, not that page.
How much does a TD RDSP cost?
TD does not list a separate RDSP plan fee in the schedule we read. The costs that apply are commissions on stocks and ETFs outside its free list, short-term redemption fees on mutual funds sold within 30 days, a transfer-out fee of about $150, and GST or HST. The quarterly maintenance fee is waived for households holding an RDSP.
Fees were read on TD Direct Investing's pricing page and its July 2026 commission schedule on October 1, 2026. Amounts are approximate, exclude applicable taxes and can change. Confirm the current schedule with TD before opening an account.
| Charge | What TD publishes | What it means for an RDSP |
|---|---|---|
| Quarterly maintenance fee | About $25 per quarter for household accounts under $15,000, waived when the household holds an RDSP | An RDSP household does not pay it, according to TD's schedule |
| Stocks and ETFs outside the free list | About $9.99 per online trade, or about $7.00 with 150 or more commissioned trades in a quarter | Matters most if you buy small amounts often |
| Select ETFs | No commission on trades placed online or in the app, from a list TD publishes | Check that your ETF is on the list and ask TD to confirm an RDSP qualifies |
| Mutual funds | No commission to buy, sell or switch; most funds carry a short-term redemption fee of 1% of the value or $45, whichever is greater, if sold within 30 days | The fund company's own fees and management expense ratio still apply |
| Trades placed by phone | A minimum commission of about $43 per trade | Online trades cost less |
| Transfer to another institution | About $150 for partial and full transfers of registered accounts | Budget for it if you may switch providers later |
The commission on a trade is fixed, so the same fee takes a larger share of a small purchase than of a large one.
The illustration below uses TD's published $9.99 and a $1,500 contribution, the amount the Government of Canada says earns the maximum $3,500 grant for a beneficiary whose family income qualifies.
| How the $1,500 is invested | Trades in the year | Commission at about $9.99 | Share of the $1,500 |
|---|---|---|---|
| One purchase of $1,500 | 1 | $9.99 | 0.67% |
| Two purchases of $750 | 2 | $19.98 | 1.33% |
| Twelve purchases of $125 | 12 | $119.88 | 7.99% |
| A select commission-free ETF or a mutual fund | Any | $0 | 0%, but fund fees still apply |
This illustrates commissions only and is not a quote. It ignores management fees inside funds and ETFs, taxes and investment returns. The grant paid into the plan also has to be invested, and any purchase made with it carries its own commission. Fewer, larger purchases cost less than frequent small ones.
What can you invest in inside a TD RDSP?
TD's RDSP page says you can hold mutual funds, stocks, bonds and ETFs, and its qualified-investments guide also lists GICs and term deposits approved by TD. Every holding must be a qualified investment for an RDSP. The plan is held in Canadian dollars, so US-dollar securities can require a currency conversion.
The Canada Revenue Agency taxes a non-qualified investment at 50% of its fair market value when the plan acquires it or when it stops qualifying, and the holder files Form RC339 by June 30 of the following year, as set out on the CRA's RDSP tax payable page. TD's qualified investments guide, dated April 2020, says the plan holder is responsible for making sure investments qualify and that TD accepts only the categories it lists, which can be narrower than tax law allows.
Confirm anything beyond GICs, mutual funds and listed ETFs with TD before buying. TD's commission-free ETF list includes TD Asset Management funds and several asset-allocation ETFs, but a free trade does not make a fund suitable or cheap to hold. Compare the management expense ratio as well.
How do you put money into a TD RDSP?
TD accepts cash from a TD Direct Investing Canadian cash or margin account or a TD Canada Trust account, a cheque or bank draft, and securities moved in kind. Anyone can contribute with the holder's permission. Contributions are not tax-deductible, and the lifetime limit is $200,000 per beneficiary.
The Government of Canada's rules shape how much to add and when:
- There is no annual limit, but the $200,000 lifetime cap includes transfers and rollovers. Grants, bonds and investment growth do not count toward it. Our RDSP contribution limit guide covers the cap in detail.
- Depending on family income, a $1,500 contribution in a year earns the maximum $3,500 grant. Amounts above what is needed to earn the grant are unassisted contributions, and withdrawing them can trigger repayment of grant and bond.
- The matching grant arrives within 6 to 8 weeks of each eligible contribution.
- Contributions can continue until December 31 of the year the beneficiary turns 59, but those made after the year they turn 49 earn no grant.
- Money rolled over from a registered retirement or education plan counts toward the cap and earns no matching grant.
How do you withdraw money from a TD RDSP?
Ask TD Direct Investing to arrange the payment, because TD's RDSP page explains the payment types but does not describe a request process. Regular payments must begin by December 31 of the year the beneficiary turns 60. A withdrawal before then can force repayment of grants and bonds received in the previous 10 years.
Grants, bonds and investment growth are taxed when paid out. Your own contributions are not.
The repayment rules turn on timing and on the beneficiary's situation, and the table below separates the common cases.
| Situation | What the Government of Canada says |
|---|---|
| Withdrawal when a grant or bond was paid in the last 10 years | Some or all of that grant and bond must be repaid |
| Beneficiary has turned 60 | No repayment on withdrawal; regular payments must begin by December 31 of the year they turn 60 |
| Last grant or bond was paid more than 10 years ago | No repayment on withdrawal |
| Reduced life expectancy of 5 years or less | No repayment on withdrawal |
| Beneficiary is no longer DTC-approved and is under 60 | Withdrawals trigger repayment, although the plan does not have to be closed |
| Beneficiary dies | Grant and bond paid in the previous 10 years are repaid, and the remaining money goes to the estate by December 31 of the following year |
Opening and contributing to a plan does not affect federal or provincial benefits anywhere in Canada, but withdrawals can affect provincial benefits in Quebec, New Brunswick and Prince Edward Island. Our RDSP withdrawal guide works through the rules and the cost of taking money out early.
Can you transfer an RDSP to or from TD?
Yes, between participating financial organizations, but the whole plan must move because partial amounts cannot be transferred. The holder starts the request and both organizations complete the required form. TD's schedule lists a transfer fee of about $150, and the other provider may charge its own, so ask both before you start.
Because a beneficiary can have only one RDSP, a transfer is the only way to move an existing plan. You cannot open a second plan at TD to hold new money. The Government of Canada's transfer and closure page sets out the rules, including that fees and conditions vary by institution.
Is TD the right RDSP provider for you?
TD suits holders who are comfortable choosing their own investments and placing their own trades, and its quarterly maintenance fee is waived for RDSP households. It fits less well if you want advice or help with paperwork built into the account. Decide on investments, fees and service, not on the brand alone, and check at least one alternative.
| If you are | TD may fit when | Look elsewhere or ask more questions when |
|---|---|---|
| An investor comfortable with ETFs and stocks | You want a self-directed account, a wide choice of holdings and a commission-free ETF list | You would buy small amounts often outside that list, where the per-trade commission adds up |
| Someone who prefers simple, low-maintenance holdings | TD-approved GICs and commission-free mutual funds meet your needs | The fund's management fees outweigh the savings on commissions |
| A parent or guardian who wants guidance | You are confident handling forms and investment choices yourself | You want an advisor to explain the grant paperwork and investment choices, which a self-directed account does not provide |
| A holder with a plan at another provider | A full transfer to TD is worth the fee of about $150 plus any charge by the current provider | The current provider offers services you would lose, or the fees outweigh the benefit |
Frequently asked questions
Does TD Bank do RDSP?
Yes. TD offers a self-directed RDSP through TD Direct Investing, and the Government of Canada lists TD Waterhouse Canada Inc. as an issuer. TD's Canada Trust RDSP page leads to the same product. The plan is for beneficiaries approved for the disability tax credit, and the application starts online or by phone.
Can you open a TD RDSP online?
TD offers an online application for its self-directed RDSP. You confirm that the beneficiary is a Canadian resident and that the CRA confirmed DTC eligibility in writing, then complete the application. Ask TD whether any step moves to phone or paper for your file, and which documents it will request.
How do I put money into my TD RDSP?
TD lists three ways: cash from a TD Direct Investing Canadian cash or margin account or a TD Canada Trust account, a cheque or bank draft, or securities moved in kind. The holder must give written permission before anyone else contributes. The lifetime limit is $200,000 per beneficiary, including rollovers.
How can I withdraw money from my TD RDSP?
Contact TD Direct Investing to arrange the payment and ask how your request is made, because TD's RDSP page does not describe the process. Regular payments must begin by December 31 of the year the beneficiary turns 60. Withdrawing earlier can trigger repayment of grants and bonds from the last 10 years.
What does a TD RDSP cost?
TD lists no separate RDSP plan fee in the schedule we read. Costs include about $9.99 per online stock or ETF trade outside its commission-free list, a short-term fee on mutual funds sold within 30 days, and about $150 to transfer out. The quarterly maintenance fee is waived for households holding an RDSP.
Where is the best place to open an RDSP?
There is no single best place. The right issuer depends on who will choose the investments, what the account costs and how much help you want with paperwork. Self-directed accounts such as TD's suit confident investors, while advisor-led providers suit people wanting guidance. Compare fees, transfer terms and service, and confirm the provider is accepting new plans.
Not sure whether to start with TD?
If the beneficiary is not yet approved for the disability tax credit, or you are unsure which institution should issue the plan, start with RDSP.ca's online eligibility questionnaire and speak with an advisor about your next steps. Our account-opening checklist lists what to prepare before any provider's application.
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