Account Terms
Recent Changes to Terms & Conditions
It's not too often that we update our Terms & Conditions, but when we do, it's always with the goal of providing you more transparency and clarity. We have updated the Terms & Conditions section called "The Canadian Payments Association" that deals with pre-authorized debits. In order to better serve you, we have more clearly defined your rights and responsibilities when it comes to pre-authorized debits.
Effective as of February 28, 2010
The following pages contain important details you need to know about your ING DIRECT Account. If you have any questions we would be pleased to help you. Call us at
ING DIRECT provides you with simple and convenient access to the financial services you need to build your savings and realize your financial goals.
By opening an Account at ING DIRECT you agree and accept the following terms and
A. General Terms - Applicable to all accounts
Our Definitions
The words "you", "your", "Account holder" and "Client" mean each person, corporation or Client that opens an Account with ING DIRECT. "Account" means any and all Accounts you have with ING DIRECT whether in Canadian or any other currency. The "primary Account holder" is the person whose name appears first on the ING DIRECT statement. The words "we", "us", and "our" refers to ING DIRECT, the name under which ING Bank of Canada / Banque ING du Canada operates. "External Account" means an account that you hold with another financial institution.
Investment Savings Account or Business Investment Savings Account
For each Account that you open with us, you must initially provide us with an encoded personal or business deposit cheque from your other financial institution. This cheque will allow us to protect the security of your Account and to link your ING DIRECT Account with your External Account. The cheque that you provide must clear to establish this link. If your first Account with us is an ING DIRECT US $ Investment Savings Account or US $ Business Investment Savings Account, then you must provide us with a cheque from your US dollar chequing account held at a Canadian financial institution, and this cheque must clear in Canada.
Once your cheque has been deposited you may be required to verbally confirm to us that you wish to link your External Account to your ING DIRECT Account. We may limit the number of External Accounts that can be linked. By providing us with an initial deposit cheque you agree that all further business with us may be conducted on your instructions through any medium offered by us. All transactions by telephone, computer, or other means, electronic or otherwise, will have the same legal effect as if you authorized these transactions in writing. You must keep at least one valid external linked account in place at all times when dealing with us. We reserve the right not to open an account if our account opening requirements are not met.
You may open your Investment Savings Account or Business Investment Savings Account in either Canadian or US currency. Interest is calculated daily on the closing balance and paid monthly. In exchange for opening and operating an Account with us you agree and consent to receiving Account statements by way of one or more electronic delivery methods which may be determined by us. Moreover, you agree that all telephone calls and other electronic correspondence may be recorded and kept as a record of your instructions. Further, pursuant to anti-money laundering legislation, you agree and consent to our verifying your identity as required and/or permitted by law and agree to provide any documentation necessary in furtherance of same. You acknowledge that your Account cannot be opened until satisfaction of these requirements and you agree to forego any payment of interest or any other benefit derived from the Account until these requirements are satisfied. You agree and consent to our verifying information provided by you through any credit bureaus, credit reporting agencies or similar third parties used for these purposes. You agree to provide any records that may be required for the opening of your Account and its continued operation under federal and/or provincial law, including but not limited to, those necessary under the Proceeds of Crime (Money Laundering) and Terrorist Financing Act ("PCMLTFA") or such other similar legislation as the case may be.
We reserve the right to comply with any third party demand such as Requirements to Pay and Requests for Information which have been issued under federal or provincial legislation, or any court order we receive in respect of your Account. You agree that we will not be liable to you in any way for complying with any such third party demands or court orders issued on or against your Account.
US Dollar Accounts
All interest payments and statements that relate to your US Dollar Accounts shall be in the currency of the United States of America. US Dollar Accounts are not insured under the Canada Deposit Insurance Corporation Act. We are not responsible to you for any losses that you may experience due to taxes, duties or depreciation in the value of US funds credited to or debited from your Account. We are not responsible for the unavailability of US Funds in your US Accounts due to the laws, rules, orders or regulations of any government or for other causes beyond our control.
Deposit and Withdrawal Transactions
You may request and/or authorize withdrawal transactions by telephone, through our Internet web site (www.ingdirect.ca) or any other means provided by us. We will make electronic funds transfers upon your request, to or from linked accounts at other financial institutions. Before we make an electronic funds transfer for you we will ask you to provide instructions and any, all, or some of the following pieces of identification information: (a) your Client Number; (b) your Account Number(s); (c) your password; and/or (d) your Personal Identification Number (PIN); and/or (e) any other identifying information that we deem necessary in order to confirm your identity.
Funds usually arrive in your ING DIRECT Account or your external linked account within one to two business days after a request for an electronic funds transfer. We are unable to guarantee the date your funds will arrive in your ING DIRECT or External Account.
You can transact on your ING DIRECT Account in any of the following ways:
- You may transfer funds between your ING DIRECT Account and your external linked account at your other financial institution by electronic funds transfer;
- The Automatic Savings Program (see below) for regularly scheduled pre-authorized deposits to your Investment Savings Account;
- Deposit a cheque by mail or by personal delivery to our offices;
- Transfer of funds between your existing ING DIRECT Canadian Dollar Account and your existing ING DIRECT US Dollar Account; and
- Any other means that we may provide.
All deposits and withdrawals to or from an ING DIRECT US Dollar Account will be made at the prevailing US dollar exchange rate on the date of the deposit or withdrawal and as determined by us. Our US dollar exchange rate is subject to change without prior notice.
Deposits or withdrawals from your Account may be reversed if the deposit or withdrawal request cannot be delivered to your other financial institution or is returned for any reason. We will not accept traveller's cheques, cash or coinage for deposit. If you send cash to us we will not be responsible for any loss that you may incur as a result. Transactions and/or balances may be limited in dollar amounts, or otherwise as may be determined by us, and such limits may be changed in our sole discretion without notice to you.
We will not be liable for any direct, indirect or consequential loss, damage or inconvenience arising directly or indirectly out of your use of, or inability to access ING DIRECT or our services. This includes but is not limited to any fraud committed against your Account or our failure to carry out instructions that you have given to us. We reserve the right to contact you to get confirmation of any written or verbal instructions before processing any transaction but we will not be liable due to our inability or failure to contact you in order to confirm such instructions. You agree that all telephone calls and other electronic correspondence may be recorded and kept as a record of your instructions. We may change the requirements for and manner of transferring funds into and out of your Account at any time.
Evidence Regarding Electronic Communication
A copy of any electronic communication will be admissible in any legal, administrative or other proceedings in the same manner as an original document in writing. You agree to waive any right to object to the introduction of any copy of electronic communications in evidence.
Clearing, Settlement and Payment
We may present and deliver Instruments for payment, clearing, collection, acceptance or otherwise through any bank or other party as we deem appropriate. The bank or other party shall be considered to be your agent and we will not, in any circumstances, be responsible or liable to you for the acts or omissions of this bank or other parties, however caused, in the performance of this service. We are also not liable for the loss, theft, destruction or delayed delivery of any Instrument while in transit to or from, or in the possession of any bank or other party. If we or our agent presents an Instrument to another financial institution for payment on your behalf and the other financial institution refuses to recognize or provide payment on that Instrument for whatever reason, you will remain responsible for the amount of that Instrument deposited with us.
Indemnity
You agree to indemnify us against any claims, costs or liabilities incurred by ING DIRECT in connection with any services provided by us to you or any other dealings between you and ING DIRECT, including any claim or liability resulting from our endorsement on any Instrument, arising out of a forged or unauthorized signature on that Instrument or otherwise.
Holds on Your Funds
We may place a hold on deposits for up to seven (7) business days if made by cheque, electronic funds transfer, or other item drawn on a financial institution's branch located in Canada, and for up to thirty (30) business days if drawn on a financial institution's branch located in the United States, during which time we may limit your right to withdraw funds made by such deposits and may refuse to accept any deposit to an Account.
Updated/New Personal Information
When we receive new or updated personal information concerning your Account, we may put a hold on your Account in order to verify such information. We may also request supporting documentation so that we can confirm updated or new information, and we may maintain the hold on your Account until your updated or new personal information can be confirmed.
Automatic Savings Program
By requesting that an Automatic Savings Program be set up for you, you authorize us and your other financial institution(s) to transfer money to and from your external linked account(s) in accordance with your instructions, and you confirm your understanding, acceptance and participation in the Automatic Savings Program.
Annual One Cent (1¢) Credit To Your External Linked Account(s)
For your ongoing Account security, you agree to at least one credit per year to your external linked account(s) in the amount of one cent. The one cent credit to an external linked account will be made at our sole discretion. We may credit one cent to your external linked account(s). This credit will not be deemed a transfer between your ING DIRECT Account and your external linked account(s).
Privacy Principles
By applying to open an Account with us, you consent to the collection, use and disclosure of your personal information in accordance with the ING DIRECT Privacy Code. The Privacy Code forms part of these Personal Account Terms and Conditions, and your agreement of these terms indicates that you accept the terms of the ING DIRECT Privacy Code.
We are committed to keeping individuals' personal information accurate, confidential, secure and private. The ING DIRECT Privacy Code reflects that commitment. The Privacy Code is based on the Personal Information Protection and Electronic Documents Act (PIPEDA), the Canadian Bankers Association (CBA) Model Privacy Code and on the Canadian Standards Association (CSA) Model Code for the Protection of Personal Information (CAN/CSA-Q830-96).
A copy of our Privacy Code will be made available to you when you open an Account. Our Privacy Code is also available on our website at www.ingdirect.ca or by calling us at
Confidentiality and Accessing Your Account with Your PIN and Password
To protect your privacy and money, when you open an Account with us you must set-up a Personal Identification Number ("PIN") in our Interactive Telephone System. The PIN allows you access to your Account and you must always provide it to us before we will follow any instructions regarding your Account. If you forget your PIN, we may accept a combination of alternate pieces of personal identification information, as described in the section of these terms called "Deposit and Withdrawal Transactions". Another separate PIN may be mailed to you for use with your ING DIRECT Debit Card. You are responsible for and give us your authorization to carry out all instructions given using your Account numbers, password and/or PIN. We will not be liable to you for any loss or claim arising out of our relying on verbal or electronic instructions provided to us using your password and/or PIN.
Your password and PIN must be kept confidential. You alone are responsible for your password and PIN security. When you give us instructions by cellular phone, e-mail, or other non secure methods we can't guarantee confidentiality because third parties can intercept these methods of communication. If any other person becomes aware of your password or PIN for any reason you must immediately notify us. You will be liable for all transactions that are made before we are notified.
Guaranteed Investments ("GIC")
We guarantee repayment at maturity of the principal sum and the interest earned on your GIC. Unless otherwise instructed by you, at maturity the principal and accrued interest on your investment will automatically be reinvested for the same term at the then prevailing interest rate.
Except where otherwise specifically stated, GIC terms of one year or longer have interest calculated on the basis of 365/366 days and compounded and/or paid annually. Except where otherwise specifically stated, where we offer GICs for terms of less than one year, interest is calculated on the basis of 365/366 and paid at maturity. The principal amount will not become payable until the maturity date, unless you have chosen to redeem your GIC prior to its maturity date. The rate of interest paid on a GIC that is cashed prior to maturity, when permitted, will be adjusted to equal the cashable interest rate agreed to on the original purchase of the GIC. A GIC is not negotiable and may not be assigned by you.
Overdrafts are Loans
If for any reason, including any actions that we take, there is an overdraft in your Account, it will be considered a loan made to you. We may choose not to make overdraft available to you. If we allow you to overdraw any of your Accounts we may charge fluctuating interest rates without notifying you from the date overdrawn until it is repaid. You must repay any overdraft and interest on demand.
Right of Setoff
We reserve the right to use all of the money in your Account(s) to pay any debts or other obligations (including any contingent obligations) you owe us whether in the same or other currency. (That is what's known as a "Set-Off"). You agree to allow us to use some or all of the money in your Account, to buy any currencies that may be necessary to pay debts that you owe us. In the case of a joint Account, all account holders consent to our using all money up to the full amount on deposit, as payment for any debt or obligations you owe us, regardless of each individual joint account holder's contribution to the Account.
Account Statements and Confirmation of Transactions
Account statements will not be provided to you, except upon your request. Details of transaction activity and Account balances are available by telephone or online at our web site (www.ingdirect.ca). Notice of changes in the rate of interest and method of calculating interest will be displayed on our website and in each of our Cafés. Although we are not obligated to send you an Account Statement, we may still choose to do so either by mail or by electronic means. If an Account Statement is sent to you, it may be delivered only to the primary Account holder's last address in our records or via any other electronic means we may, at our discretion, utilize. You agree that you will examine all of your Account Statements and other transaction records regularly (at least once every thirty days). If you discover any errors or omissions in your Account Statements and/or other transaction records, you must notify us of such errors or omissions within 30 days of the date of the Account Statement or the transaction date. We will consider Account Statements and other transaction records to be accurate if we do not receive any notice from you to the contrary. We shall not be liable to you for any loss or claim arising as a result of any errors or omissions in Account Statements and other transaction records.
The Canadian Payments Association
Authorization
By signing the ING DIRECT Enrollment Form and providing an initial deposit cheque for each External Account you agree that this authorization is provided for the benefit of your other financial institution(s) and you authorize us to process Funds Transfer requests against your Account according to the Rules of the Canadian Payments Association. You authorize and assure us that all individuals who have signed the ING DIRECT Enrollment Form or agreed to these terms are all those who are required to sign on your chequing account(s) at your other financial institution(s).
You agree that this authorization is provided for our benefit and for the benefit of the other designated financial institution(s). You also agree that this authorization is provided in consideration of us agreeing to process debits against your designated account(s) in accordance with these Account Terms as agreed to with us. Canceling this authorization does not terminate any other agreement that exists between you and ING DIRECT. Your authorization applies only to the method of payment and does not otherwise have any bearing on any agreement for services with us. The financial institution(s) at which you maintain your designated external chequing account(s) is (are) not required to verify that the debits are drawn in accordance with this authorization.
You further agree that your client number and assigned PIN or other security code or other signature equivalents may be used and will constitute valid authorization for ING DIRECT to process the debits to your account(s) that you have requested.
Funds Transfers Pre-Authorized Debits
Your initial request and all such subsequent requests to have money transferred to and/or from your ING DIRECT account to that of another financial institution constitutes a Funds Transfer Pre-Authorized Debit ("PAD"). All Funds Transfers are customer-initiated pre-authorized debits where money is moved by the same customer from the account of one financial institution to the account of another financial institution. ING DIRECT will process a Funds Transfer and move funds only at the customer's initiation and request and as per the customer's instructions, including amount, frequency etc. The timing and amount of Funds Transfers will vary according to the instructions received from you. To arrange a Funds Transfer, you may contact ING DIRECT at 1-800-464-3473 and provide your instructions and authorization to a Direct Associate or you may log onto ING DIRECT banking website's to initiate and authorize an electronic funds transfer online. It is your responsibility to either provide us with, or enter online, the correct information in order to process your Funds Transfer. ING DIRECT will process such transaction in accordance with the Rules of the Canadian Payments Association and these Account Terms. For an overview of your rights and responsibilities with respect to PADs, please visit the Canadian Payments Association at www.cdnpay.ca.
Cancellation
The account(s) at your other financial institution(s) which we are authorized to draw funds from upon your request has been specified by you by providing an initial deposit cheque from that account. You agree to inform us by telephone or other means provided by us from time to time of any change in the account information provided before any request for the transfer of funds. You may cancel a PAD or revoke your authorization at any time by providing ING DIRECT with at least 30 days notice before your next scheduled PAD. You agree that your cancellation of this authorization will take effect upon its receipt and confirmation by us. You acknowledge that you have the ability to instruct us to make changes to any PAD arrangements you make with us at any time. You can obtain a sample cancellation form or further cancellation information at ING DIRECT or the Canadian Payments Association at www.cdnpay.ca.
Contact Us
ING DIRECT
111 Gordon Baker Road
Toronto, Ontario
M2H 3R1
Tel. 1-800-ING DIRECT
(1-800-464-3473)
www.ingdirect.ca.
Pre-Notification
You waive your right to receive pre-notification of the amount of the PAD and agree that you do not require advance notice of the amount of PADs before the debit is processed. You acknowledge that you will not receive written notice from ING DIRECT of the amount to be debited or the due dates of the debiting.
Confirmation
You confirm that the information you have provided is correct and accurate and that you have authorized ING DIRECT to act on your instructions and process your requested Funds Transfer PAD(s).
You may wish to print off a copy of these Terms and Conditions for your records.
Recourse
You have certain recourse rights if any debit does not comply with this agreement. For example, you have the right to receive reimbursement for any debit that is not authorized or is not consistent with this PAD Agreement. To obtain more information on your recourse rights, you may contact your financial institution or visit www.cdnpay.ca.
EXCEPTION: Please note that a Funds Transfer PAD, being a debit authorized by the customer wherein funds are moved among the customer's accounts held at different financial institutions, the recourse rights noted above through the Canadian Payments Association are not applicable. However, if a discrepancy occurs in a Funds Transfer PAD that you initiated through ING DIRECT, please contact us
Third Party Pre-Authorized Debits
You are responsible for establishing any PAD Agreement with third parties and providing them with all necessary and correct information to establish and enter into such an arrangement.
You assure us that all PAD Agreements you enter into with third parties are in accordance with the PAD Rules established by the Canadian Payments Association.
You acknowledge and agree that you are responsible for any charges incurred if the debits can not be processed due to insufficient funds or any other reason for which you may be held accountable.
We are not responsible for the failure of any third parties to act upon PAD instructions provided by you.
It is your responsibility to promptly examine your account transaction information regularly and address any concerns or discrepancies regarding any PAD in accordance with the PAD Rules established by the Canadian Payments Association within the stipulated time periods.
For further information on your rights and responsibilities regarding such third party pre-authorized debit transactions, please refer to the Canadian Payments Association website at www.cdnpay.ca.
Closing of Accounts
You can close your Account with us at any time. We also have the right to close your Account for any reason, and pay you the balance, if any, according to our rights of setoff described above. Where there is no money in your Account and there has been no transaction for six months, your Account may be closed at our discretion, where applicable. Upon your death or incapacity we are authorized to take such steps and/or require such documentation (including but not limited to a certified copy of the death certificate, a letter of direction and notarized copy of the Certificate of Appointment of Estate Trustee or Executor [or the jurisdictional equivalents of these documents]) or restrict transactions in the Account as we deem prudent or advisable. Upon receipt of the proper legal documentation following your death or incapacity, we will transfer the balance of your funds to your legal representative and close your Account. In all cases, you (or your estate) shall continue to remain responsible for any transaction on your Account. Your estate representative will have the same rights, responsibilities and obligations under these Account Terms as you, the account holder, unless we, in our sole discretion, determine otherwise
Changes to this Agreement
We may change these Account Terms at any time, and any changes will be effective 30 days following notice to you. Notice of changes to the Account Terms may be distributed through our statements, newsletters and/or posted on the ING DIRECT website. If you access or have funds on deposit in any Account at ING DIRECT after the effective date of the change, you automatically accept the change.
Limitations of Liability
We are not responsible for any losses, costs, damages or any failure to obtain any profit in connection with your use of your Account or with any other of our products or services, without limitation and however caused, unless we were grossly negligent. If we were grossly negligent, you will not hold us liable for any indirect, special or consequential damages (including lost profits). You will be responsible for any loss, cost or liability (including reasonable legal charges) incurred by us as a result of your failure to comply with these Account Terms.
Miscellaneous Terms
Interest Rate
We may change our interest rates and our method of calculating interest at any time without prior notice.
Acceptance of Account Terms
At our discretion we may accept your signature, or other evidence of your acceptance of these Account Terms received by facsimile, telephone or other electronic means, as your original signature or acceptance.
Except as otherwise stated herein, these terms and conditions apply to all our products and services provided by us that you have now or may have in the future. You may obtain our other products or services in the future with additional terms and conditions. Those terms and conditions will be sent to you in writing or electronically. Your use of those products or services will indicate your acceptance of those terms. If any of those terms and conditions conflict with a provision in these terms and conditions, the additional terms and conditions attached to your other product(s) or service(s) with us shall apply and, to the extent of said conflict, take precedence over any conflicting terms herein.
Communication by Regular Mail
All communications from us to you (including notices that deposits into or withdrawals out of your Account could not be accepted or items have been returned) will be sent by regular mail unless otherwise stipulated by us.
Payment and Clearing Systems
We do not control the national payments system or other payment system participants used in the process of transferring your money. We cannot guarantee a time of delivery for requested funds transfers. However, we will make reasonable efforts to facilitate your funds transfer requests.
Language
You have expressly requested that this document, the RSP Account Terms and all other documents related to your Account be written in English. Vous avez expressément demandé que ce document, les Modalités de Compte RÉR et tout autre document concernant votre compte soient rédigés en anglais.
Complaints or Concerns about these Terms
These Account Terms are governed by the laws of the Province of Ontario and the laws of Canada applicable in Ontario. If you have any questions regarding these Account Terms or you have complaints in connection with your Account, please call us at
Ombudsman
When a Client has an issue or problem with one of our services or products, they may raise these issues or problems by following our complaints resolution process. If a Client is unable to resolve their issue or problem through our internal complaints resolution process, they can then address their complaint to the Office of the Ombudsman at ING DIRECT.
If you have made a complaint to us and your questions or complaints are not resolved to your satisfaction, please write
The Ombudsman
ING DIRECT
111 Gordon Baker Road
Toronto, Ontario M2H 3R1
If you are not satisfied with the Ombudsman's response, you may contact the Ombudsman for Banking Services and Investments at
Ombudsman for Banking Services and Investments
401 Bay St. Suite 1505
P.O. Box 5
Toronto, ON M5H 2Y4
Financial Consumer Agency of Canada
The Financial Consumer Agency of Canada (FCAC) supervises federally regulated financial institutions to make sure that they comply with federal consumer protection laws. The FCAC also helps educate consumers and monitors industry codes of conduct and public commitments designed to protect the interests of consumers. We must comply with many consumer laws that protect you in a number of ways. For information about consumer protection laws, contact the FCAC (see contact information below). If you have a complaint regarding a potential violation of a consumer protection law, a public commitment, or an industry code of conduct, you can contact the FCAC at:
1-866-461-3222 (English) or 1-866-461-2232 (French), or write to:
Financial Consumer Agency of Canada
427 Laurier Avenue West, 6th Floor
Ottawa, Ontario K1R 1B9
B. Terms that Apply to Investment Savings Accounts and Guaranteed Investment Clients Only (In addition to General Terms above)
Joint Accounts
Each account holder chooses his/her own password and PIN. Any Joint Account holder may conduct transactions with any of your Accounts that have been designated as Joint Accounts with us. If one Joint Account holder requests a transaction we will execute it without express authorization of any other Joint Account holder. You are responsible, both individually and jointly, for all obligations arising from these Account Terms. If any Joint Account holder dies who is a resident of any province or territory within Canada (excluding Quebec), any positive balance may be withdrawn or made payable to the surviving Joint Account holder(s) and you hereby assign the balance of any jointly held bank Account to the surviving holder(s) in the event of your death. For Quebec residents only, any positive balance shall be settled in accordance with the estate of the deceased Joint Account holder.
Neither Joint Account holder may request the opening of a subsequent Joint Account with the same Account holder(s) without the explicit consent of the other Account holder(s) thereto. Such consent may be provided to us either in writing or via electronic means specified by us at our discretion.
We may disclose your Account information to a Joint Account holder, including information about the Account prior to it becoming a Joint Account.
Accounts for the Benefit of Others – "In Trust", Etc.
We are not required to recognize anyone other than you as having any interest in your Account, except joint account holders when an account is a Joint Account. For example, if you request that we open an Account in your name, but you use "In Trust" or "As Nominee" or some similar designation, whether or not it is for a specified third party, we will only accept instructions for that Account from you. We are under no obligation to obtain permission from any other person.
RSP Agreement
(Applies to Investment Savings Account and GIC Clients Only)
ING Bank of Canada/Banque ING du Canada (the "Issuer"), hereby declares that it agrees to act as the depository for the person, hereafter referred to as the Annuitant (the "Annuitant") under the Issuer's Retirement Savings Plan (the "Plan") administered by ING Bank of Canada/Banque ING du Canada (the "Issuer").
1. Registration
The Issuer will apply for registration of the Plan as a retirement savings plan (an "RSP") pursuant to the provisions of the Income Tax Act (Canada) and if applicable, the provisions of any income tax legislation of the Province indicated in the Annuitant's address as shown in the application. The Income Tax Act (Canada) and such applicable provincial income tax legislation are hereinafter collectively referred to as the "Tax Acts".
2. Contributions
Contributions made by the Annuitant, or the Annuitant's spouse or common-law partner, and the interest earned or accrued thereon shall be held in trust by the Issuer, subject to the terms contained in the RSP Account Terms, until the Maturity Date of the Plan. Contributions received shall be invested as directed by the Annuitant. Failure by the Annuitant to give instructions to the Issuer prior to or at maturity of a Fixed Term Deposit will result in the proceeds of the maturing Fixed Term Deposit being reinvested for the same term at the then prevailing rate of interest.
3. Investments
All contributions received by the Issuer will be invested in an Account with the Issuer "in trust" for the Annuitant and will earn such interest, compounded at least annually as will be declared by the Issuer from time to time.
4. Excess Contributions
All contributions must be made in accordance with Section 146 of The Income Tax Act (Canada) to qualify for tax exemption. The Issuer shall, upon written application by the Annuitant or the Annuitant's spouse or common-law partner, refund to the taxpayer an amount, as defined in paragraph 146(2)(c.1) of the Income Tax Act (Canada).
5. Payment before Maturity
The Annuitant may from time to time, prior to the maturity of the Plan, upon such notice as the Issuer may permit, request a full or partial refund of the contributions from the Issuer.
6. Maturity of the Plan
The date chosen by the Annuitant for provision of a retirement income at maturity of his/her Plan shall not be later than the end of the year in which the Annuitant attains the age in which maturity is required as provided for in the Income Tax Act (Canada). At maturity, the proceeds of the Plan will be used on the instructions of the Annuitant
(a) The purchase of a life annuity for the Annuitant for his life or the lives jointly of the Annuitant and his/her spouse or common-law partner, or the survivor of them; and/or
(b) A fixed term annuity providing benefits up to the 90th birthday of the Annuitant or to the 90th birthday of the Annuitant's spouse or common-law partner, if younger.
No annuity shall be capable of surrender, exchange, or assignment. If such annuity would become payable to a person other than the Annuitant or, in the event of the Annuitant's death, the annuity may only become payable to the Annuitant's spouse or common-law partner. Notwithstanding the foregoing, the Annuitant may request that the Plan be amended at maturity to transfer on his/her behalf all or a portion of the proceeds of the Plan to a Registered Retirement Income Fund as defined in Section 146.3 of the Income Tax Act (Canada).
Failing written instructions from the Annuitant, the assets of the Plan or the proceeds of the disposition thereof shall be transferred, at the discretion of the Issuer, to the Annuitant's Investment Savings Account (ISA), external linked account or a retirement income fund (RIF).
7. Benefits after Maturity
The Plan does not provide for the payment of any benefit to the Annuitant after maturity, except by way of retirement income, in full or partial commutation of the retirement income under the Plan or in respect of a commutation as defined in paragraph 146(2)(c.2) of the Income Tax Act (Canada).
After the maturity of the Plan or following a partial conversion, retirement income shall be paid to the Annuitant only by way of equal annual or more frequent periodic payments. In addition, in accordance with paragraph 146(2)(b.2) of the Income Tax Act (Canada), the aggregate of the periodic payments in a year under an annuity after the death of the Annuitant shall not exceed the aggregate of the payments made in a year before that death.
8. Death of Annuitant
If the Annuitant dies prior to the purchase of an annuity, the Issuer shall realize the contributions and interest earned of the Annuitant in the Plan, and subject to the deduction of all proper charges, including income tax, the proceeds of such realization shall be held by the Issuer in trust. The proceeds shall be paid to the legal personal representatives of the Annuitant upon such representatives furnishing the Issuer with documentation as may be required or as counsel may advise.
9. No Benefit
No advantage that is conditional on the existence of the Plan may be extended to the Annuitant or to any person with whom the Annuitant does not deal at arm's length other than those advantages or benefits which may be permitted under paragraph 146(2)(c.4) of the Income Tax Act (Canada).
10. Compensation
The Issuer has no right of offset as regards the property held under the plan in connection with any debt or obligation owing to the Issuer as defined in paragraph 146(2)(c.3).
11. Assignment
Retirement income, property or investments held under the Plan may not be hypothecated, pledged, assigned, alienated or in any way given as security.
12. Amendments
(a) The Issuer may make amendments to the RSP Account Terms with approval from the Minister of Revenue and any provincial tax authorities if applicable, providing that any amendments shall not have the effect of disqualifying the Plan as a Retirement Savings Plan within the meaning of the Tax Acts.
(b) The Issuer may resign its trust and be discharged from all future duties and liabilities hereunder upon giving three month's notice in writing to the Annuitant. The Issuer may provide shorter notice if the Annuitant so consents. Should the Annuitant elect to terminate the services of the Issuer and appoint a successor Issuer, the Issuer shall transfer the proceeds of the Plan to the successor Issuer within a period of three months from receipt of written notification from the Annuitant that a change of Issuer is directed.
13. Annuitant's Account
The Issuer
(a) maintain an Account for the Annuitant which will record particulars of all contributions to the Plan and their investment;
(b) prepare and forward to the Annuitant an annual statement of the Plan showing all transactions during the preceding year; and
(c) prepare and forward to the Annuitant and/or the Annuitant's spouse or common-law partner such receipts, other forms, documents and information as may be required to be provided by the Tax Acts.
14. Indemnification and Protection of the Issuer
The Issuer shall not be liable in its personal capacity for or in respect of any taxes, interest or penalties which may be imposed on the Issuer in respect of the Plan, whether by way of assessment, reassessment or otherwise, or for any other charges imposed by any governmental authority, as a result of payments out of the Plan, the purchase, sale or retention of any investment (including, without limitation thereof, "non-qualified investments" and "foreign property" within the meaning of the Tax Acts), or otherwise. The Issuer may reimburse itself for or may pay any such taxes, interest, penalties, or charges out of the assets of the Plan. The Annuitant and the heirs, executors and administrators of the Annuitant shall at all times indemnify and save harmless the Issuer in respect of any such taxes, interest, penalties or charges imposed upon the Issuer in respect of the Plan. In addition, the Issuer shall not be liable in its personal capacity for, or in respect of, any loss suffered or incurred by the Plan, the Annuitant or by any beneficiary under the Plan, caused by or resulting from any purchase, sale or retention of any investment unless caused by or resulting from the Issuer's dishonesty, bad faith, willful misconduct, gross negligence or reckless disregard.
C. Terms that Apply to Business Account Clients Only
(In addition to General Terms above)
Internal Procedures
All Business Clients will appoint up to three individuals, referred to as "Authorized Individuals" who will be the only individuals permitted to transact on the Account(s). As a means of identity confirmation, each Authorized Individual must submit a personal pre-printed cheque made payable to the business, drawn from a personal account belonging to the Authorized Individual and held at a Canadian financial institution. Passwords and PINs belonging to Authorized Individuals must be kept confidential between the Authorized Individual and ING DIRECT. The Authorized Individual is solely responsible for his or her password and PIN security. We cannot ensure confidentiality when cellular phones, e-mail or other non-secure methods of conveying instructions are used, as these may be intercepted by third parties. If an Authorized Individual's password or PIN becomes known for any reason, by any other person, the Authorized Individual must immediately notify us. The Business and/or the Authorized Individual will remain liable for all transactions occurring before we are notified.
All Business Clients will comply with security procedures prescribed by us for electronic communication with us and will take any other steps reasonably necessary to prevent unauthorized access to and use of means of electronic communication with us, including, without limitation, preventing unauthorized access to the Your PIN and password. All Business Clients will, at all times, have in place and maintain commercially reasonable procedures designed to prevent, detect or avoid losses due to forged or unauthorized signatures, fraud or theft in relation to the operation of any Account, including, without limitation, instructions and Instruments relating to any Account.
Account Operation
The Business Investment Savings Account is a high interest savings account, and is intended to be the secondary bank account for your business. The Business Investment Savings Account is not intended to be used as an operating account and is not intended to provide general cheque clearing or currency trading services for your business. The business agrees by maintaining an account with us that we reserve the right to close the Account should there be any misuse by the business.
The business agrees to provide all records that are required for the opening of the Account and continuing Account operation under Canadian law, including but not limited to the Proceeds of Crime (Money Laundering) and Terrorist Financing Act ("PCMLTFA"). The business agrees that an Account cannot be opened until the Bank has received all of the documentation necessary to complete its know your Client obligations contained in the PCMLTFA, which includes a fully completed application form, and personal cheques from each Authorized Individual. The business Account requires these financial records on its own as of the date of the BISA opening, and previously cleared cheques may not be sufficient. The business agrees to forego any interest payments or other benefits from the Business Investment Savings Account until it has provided all of the items requested from us in order to open an Account.
In the case of partnership Accounts, Authorized Individuals who are not partners will be required to submit documentation that is satisfactory to us indicating that the partnership has authorized the operation of the BISA by an individual who is not a partner of the partnership.
Liability regarding the provision of electronic services
We make no claims or warranties with respect to the equipment or the system used for electronic banking, and we shall not be liable for any failure or malfunction of the equipment or the system, except as specifically provided by law.
We will only process fund transfers that are destined to and from external accounts with identical ownership details. In the case of the Business Investment Savings Account, fund transfers cannot be set up with non business accounts, or to the external account of an Authorized Individual.
Successors and Assigns
These Account Terms are binding upon you and each of your successors, assigns and legal representatives.
Tax Free Savings Account Agreement
ING Bank of Canada/Banque ING du Canada, hereby declares that it agrees to act as the depository for the person, (referred in this Tax Free Savings Account Agreement as the “Holder”, “You”, or “Your”) under the arrangement to be registered under your Social Insurance Number as a Tax Free Savings Account.
In this Tax Free Savings Account Agreement, the following definitions will apply:
“ING DIRECT” – ING DIRECT is the operating name of ING Bank of Canada/Banque ING du Canada (also referred to in this Tax Free Savings Account Agreement as “our”). ING DIRECT is the Issuer of the Tax Free Savings Account.
“TFSA” – The Tax Free Savings Account consisting of the application and this agreement.
1. Registration
ING DIRECT will file an election to register the arrangement as a Tax Free Savings Account in accordance with section 146.2 of the Income Tax Act (Canada) and if applicable, the provisions of any income tax legislation of the Province where you reside. For this purpose, you must ensure to provide ING DIRECT with your valid Social Insurance Number and address. The Income Tax Act (Canada) and any applicable provincial income tax legislation are hereinafter collectively referred to as the “Tax Acts”. The arrangement complies with prescribed conditions.
2. Contributions
Contributions made by you shall be deposited with ING DIRECT, and the interest earned or accrued thereon shall be credited or added to the deposit by ING DIRECT, subject to the terms contained in the Tax Free Savings Account Agreement. Contributions are to be made under the Tax Free Savings Account to ING DIRECT for the purpose of ING DIRECT making distributions under the TFSA to you. Only you may make contributions under the Tax Free Savings Account.
3. Investments
Contributions received shall be invested as directed by you.
4. Excess Contributions
All contributions must be made in accordance with section 146.2 of The Income Tax Act (Canada) to qualify for any applicable tax exemptions. You shall be solely responsible for tracking contributions made to the Tax Free Savings Account, in addition to your other similar arrangements held with ING DIRECT and at other financial institutions in order to determine if contributions made to the Tax Free Savings Account would constitute an “excess TFSA amount” as defined in section 207.01 of the Income Tax Act (Canada) at any particular time. You understand that you will be subject to tax on a monthly basis for each month that you have an “excess TFSA amount”
5. Distributions
You may from time to time, upon such notice as ING DIRECT may permit, request a full or partial refund of the contributions from ING DIRECT. The Tax Free Savings Account permits Distributions to be made to reduce the amount of tax otherwise payable by the Holder under sections 207.02 or 207.03 of the Income Tax Act (Canada).
6. Exclusive Benefit
The Tax Free Savings Account will be maintained for your exclusive benefit. Such benefit is determined without regard to any right of a person to receive a payment out of or under the arrangement only on or after the death of the Holder. At all times while there is a Holder of the Tax Free Savings Account, anyone that is neither the Holder nor the Issuer of the Tax Free Savings Account is prohibited from having any rights under the Tax Free Savings Account relating to the amount and timing of distributions and the investing of funds.
7. Transfer to another Tax Free Savings Account Arrangement
Upon receiving your direction, ING DIRECT will transfer all or any part of the property held in connection with the Tax Free Savings Account (or an amount equal to its value) to another tax free savings account that you have arranged with another financial institution.
8. Death
Where you have not elected your spouse or common-law partner to become the holder of your Tax Free Savings Account as provided for by section 14 or by your will, once ING DIRECT has received the documentation required, ING DIRECT shall, pay the Tax Free Savings Account proceeds by a single payment, less required income tax deductions, to your designated beneficiary and notify your estate representative of any resulting tax liability. In instances where you have not designated a beneficiary as provided for by section 14, the Tax Free Savings Account proceeds will be paid by a single payment, less required income tax deductions to your estate. When ING DIRECT has made the payment of the fund proceeds to your designated beneficiary or to your estate, ING DIRECT will be considered as fully discharged from any further liability with respect to your Tax Free Savings Account.
9. Proof of Age
The statement of your date of birth on the Tax Free Savings Account Application will constitute your certification and agreement to provide such further evidence of proof of age as may be required for the establishment of your Tax Free Savings Account. You must be at least eighteen years of age at the time that a Tax Free Savings Account Application is submitted to ING DIRECT. ING DIRECT will rely solely on your statements regarding your age and eligibility for a Tax Free Savings Account, and will not be liable in any way for any tax consequences imposed as a result of incorrect statements submitted to ING DIRECT in respect of the account opening process.
10. Residency
You agree to inform ING DIRECT without delay if you cease to be a resident of Canada for Canadian tax purposes. You will be solely responsible for any tax consequences arising from contributions made at a time in which you are a non resident for Canadian tax purposes, even if you provided ING DIRECT with a notice under this section.
11. Amendments
(a) ING DIRECT may make amendments to the Tax Free Savings Account Agreement with approval from the Minister of National Revenue and any provincial tax authorities if applicable, providing that any amendments shall not have the effect of disqualifying the TFSA as a Tax Free Savings Account within the meaning of the Tax Acts.
(b) ING DIRECT may resign from its agreement to act as the depositary under this Tax Free Savings Account and be discharged from all future duties and liabilities hereunder upon giving you three month's notice in writing. ING DIRECT may provide shorter notice if you also consent. Should you elect to terminate the services of the Issuer and appoint a successor issuer, ING DIRECT shall transfer the proceeds of the Tax Free Savings Account to the successor issuer within a period of three months from receipt of written notification from you that a change of Issuer is directed.
12. Holder's Account
ING DIRECT will:
(a) maintain an account for you which will record particulars of all contributions to the Tax Free Savings Account and their investment;
(b) prepare and forward to you an annual Tax Free Savings Account statement showing all transactions during the preceding year; and
(c) prepare and forward to you such receipts, other forms, documents and information as may be required to be provided by the Tax Acts.
13. Designation of Successor Holder or Beneficiary
If you reside or are domiciled in a jurisdiction in which according to applicable law, a participant in, or plan holder of a tax free savings account may validly designate a beneficiary or successor holder, you may, by instrument in writing designate your spouse or common-law partner as a successor holder or any other person as beneficiary to be entitled to receive the value of your deposits in your Tax Free Savings Account in the event of your death. Such person shall be deemed to be the successor holder or designated beneficiary for the purposes of the Tax Free Savings Account unless such person shall predecease you or unless you revoke such designation by instrument in writing in a form prescribed by ING DIRECT and delivered to ING DIRECT prior to your death.
14. Indemnification and Protection of the Issuer
ING DIRECT shall not be liable in its personal capacity for or in respect of any taxes, interest or penalties which may be imposed on ING DIRECT in respect of the Tax Free Savings Account, whether by way of assessment, reassessment or otherwise, or for any other charges imposed by any governmental authority, as a result of payments out of the Tax Free Savings Account, the purchase, sale or retention of any investment, or otherwise. ING DIRECT may reimburse itself for or may pay any such taxes, interest, penalties, or charges out of the assets of the Tax Free Savings Account. You and your heirs, executors and administrators shall at all times indemnify and save harmless ING DIRECT in respect of any such taxes, interest, penalties or charges imposed upon ING DIRECT in respect of the Tax Free Savings Account. In addition, ING DIRECT shall not be liable in its personal capacity for, or in respect of, any loss suffered or incurred by the Tax Free Savings Account, you or by any beneficiary under the Tax Free Savings Account, caused by or resulting from any purchase, sale or retention of any investment unless caused by or resulting from our dishonesty, bad faith, willful misconduct, gross negligence or reckless disregard.
D. Terms that Apply to Children's Savings Account Clients Only
(In addition to General Terms above)
By opening a Children's Savings Account at ING DIRECT you agree and accept the following terms and conditions:
General Terms -
Except as otherwise specified herein, the terms and conditions applicable in our general Account Terms, shall apply to the Children's Savings Account ("CSA"). Where there is an inconsistency between our general Account Terms and the terms and conditions in our CSA, the CSA terms shall prevail for any matters involving the CSA.
Our Definitions
"Account" means a Children's Savings Account offered by ING DIRECT. "Child" shall mean a minor, according to the respective laws of the province in which he or she resides, holding a CSA with ING DIRECT. "Parent or Guardian" shall mean one (1) natural parent or court appointed parent/guardian of the Child, holding an account with ING DIRECT. Capitalized words used herein, but not defined, shall have the meaning given under the general Account Terms. Where appropriate, terms written in the singular shall be read as the plural.
Children's Savings Account
A CSA may be opened for a Child by his/her Parent or Guardian. There may only be one (1) Account per Child. The CSA shall be operated as a joint account between a Parent or Guardian and the Child, where the Child shall be deemed the primary account holder (see general Account Terms for terms and conditions specific to Joint Accounts). As long as the Child is the account holder of the CSA, the Child cannot hold any other account with the bank. Should the Parent or Guardian cease to hold an account with the bank, the bank reserves the right to settle the CSA in favour of either the Child or Parent or Guardian by any means it deems appropriate.
In order to open a CSA with the bank, the Parent or Guardian must agree to act as agent for the bank in satisfying its identity verification and anti-money laundering obligation and agree to provide all information and documents as may be required by the bank from time to time including consents for e-signatures and for electronic delivery of any documents necessary for the maintenance of the Account. An Account for which information or documentation remains outstanding may be restricted or frozen until such time that the outstanding requirements are satisfied.
Once established, the CSA may be linked to the Child's external chequing account by sending a cheque drawn on the Child's external account to us and satisfying any other requirements for the purpose of linking accounts that we might require at that time. Once linked, the Child will have the ability to transfer funds to his/her external account.
Account Opening
The CSA must be opened by a Parent or Guardian for the benefit of the Child and shall be maintained as a Joint Account between Parent or Guardian and Child (see general Account Terms for terms and conditions specific to Joint Accounts). Users of the Account acknowledge that the CSA is an electronic account with a paperless process. Parent or Guardian agree to sign and consent to electronic delivery of all documents necessary for the maintenance of this Account, including statements, account records, tax receipts etc. Before a CSA can be opened a Parent or Guardian must have a valid external link with ING DIRECT, which is in good standing at the time of opening of a CSA. Parent or Guardian and Child must properly complete the forms and provide all information deemed necessary by ING DIRECT, including any agency, consent or power of attorney agreements. An Account for which information or documentation remains outstanding may be restricted or frozen until such time that the outstanding requirements are satisfied. The CSA is available only in Canadian Dollars. A Child must have his/her own external account in order to establish a link with the CSA. By using the Account in whatever manner, you accept and agree to these terms and conditions.
Account Conversion
Unless otherwise specified, the CSA will be converted into a single Investment Savings Account ("ISA") held solely in the Child's name upon the child's attainment of the age of majority in the province in which he or she resides. Prior to the Child's attainment of the age of majority, ING DIRECT will use its best efforts to obtain all information required to complete account conversion. Parent or Guardian agree and acknowledge that any pre-authorized transactions such as automatic withdrawals or payments may be deleted upon conversion. Failure by the Parent or Guardian or Child to fulfill all the necessary requirements for conversion of the CSA into an ISA account may result in a "freeze" being placed on the newly created ISA. At the time of conversion into an ISA any pending or reoccurring transactions to or from accounts belonging to the Parent or Guardian will be deleted.
Account Operation
Parents or Guardians acknowledge that ING DIRECT will not be liable for any direct, indirect or consequential loss, damage or inconvenience arising directly or indirectly out of you or your Child's use of, or inability to access ING DIRECT or our services. This includes but is not limited to any fraud committed against your Child's CSA or your other account(s) or our failure to carry out instructions that you or your Child have given to us. Parents or Guardians acknowledge that we reserve the right to contact you to get confirmation of any written or verbal instructions before processing any transaction but we will not be liable due to our inability or failure to contact you in order to confirm such instructions. You agree that all telephone calls and other electronic correspondence may be recorded and kept as a record of your instructions. We may change the requirements for and manner of transferring funds into and out of your account or the CSA at any time. Children shall not be permitted access to ING DIRECT bank cards under the terms of the CSA.
Direct use of the Account requires an electronic identifier which may consist of one or more of the following: i) Client Number; ii) Personal Identification Number (PIN); iii) Password; iv) Any other security measure established by ING DIRECT.
You agree that electronic pages, such as pages viewed on the ING DIRECT website, accessed by Electronic Identification are written documents and that by electronically acknowledging by clicking any buttons stating "OK", "proceed", "continue", "approve" or icons with similar intent, said actions shall have the same legal effect as if you had placed your signature by hand and provided hardcopy versions of such pages with intent to be legally bound by their content with ING DIRECT.
Confidentiality and Accessing Your Account with Your PIN and Password
Upon initial setup, the Parent or Guardian will have the ability to select a PIN for the Child. The Child may then reset the PIN. Passwords and PINs must be kept confidential and should not be kept in writing anywhere in your wallet or at home, and should not be disclosed to anyone that is not a joint holder of the Account, including our call center or any third party. We will not be liable to you for any loss or claim arising out of our relying on verbal or electronic instructions provided to us using a valid password and/or PIN.
Parent or Guardian agrees and acknowledges that he/she has agreed to operate this Account with a minor at the sole risk and liability of the Parent or Guardian. Parent or Guardian further agrees that he/she shall be responsible for any action taken by the Child in relation operation of the CSA and any accounts to which it may be linked.
Closing of Accounts
Except as may otherwise be necessary, only the Parent or Guardian linked to the CSA may close the Account. A Parent or Guardian can close the Account with us at any time by calling our call center at the toll free telephone number
Changes to this Agreement
We may change these terms at any time, and any changes will be effective 30 days following notice. Notice of changes to these terms shall be posted on the ING DIRECT website. If you access or have funds in the Account at ING DIRECT after the effective date of the change, you are deemed to have accepted the change.
