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AcceleRate Financial NO interest paid on Registered Money in Variable Accounts Til Dec 31
November 21, 2019
2:31 pm
GICinvestor
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I called Accelerate a few days ago. I had printed the value of a TFSA Gic when I moved the matured funds to the variable savings account. I checked and was surprised.....no interest paid for the last 5 months!! Apparently they only pay interest at the end of the year for Registered Money in a Savings Account. BUT if withdrawn before the end of the year you will receive interest for the period of time it was in your savings account.

I find that unique to Accelerate.

Also, interest wise, am I being short changed by the calculation they may use?

November 21, 2019
4:51 pm
pooreva
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Did you ever read 'small print' before doing business with them?

As for 'short changed', do you calculation the way you think is right and compare... But it IS strange. I want to see my interest monthly unless they have different rules.
For example, with one of the big bank cash-back VISA you do not get your 'cash' every month but it accumulates and you get credit on December statement for acumulated 'cash-back'.

November 21, 2019
5:19 pm
Norman1
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The interest calculation and payment cadence is mentioned in their AcceleRate Registered Retirement Savings Plan product page:

AcceleRate Variable RRSP

  • The AcceleRate Variable RRSP gives you the no-fee flexibility of our savings account while keeping your funds and interest free of tax. This is also a great option to start saving to invest into a RRSP GIC.
  • You may redeem or transfer your funds at any time.
  • Your interest will be calculated on your daily closing balance and paid annually on December 31.
  • All deposits 100% guaranteed by the Deposit Guarantee Corporation of Manitoba. This includes principal and interest.

November 21, 2019
6:50 pm
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pooreva said
Did you ever read 'small print' before doing business with them?

As for 'short changed', do you calculation the way you think is right and compare... But it IS strange. I want to see my interest monthly unless they have different rules.
For example, with one of the big bank cash-back VISA you do not get your 'cash' every month but it accumulates and you get credit on December statement for acumulated 'cash-back'.  

Of course not! I am sure, but now have to verify, that I did receive monthly interest for TFSA at Outlook (but no longer have history with them) and Hubert for RRIF.

I have an Excel program for tracking all GICs and the matured amount is always correct but not sure of the TFSA cash. I am doing the December withdrawal and January reinvest.

I used to do so much with Accelerate, but just because I can usually get a better rate elsewhere, my investments have dwindled with them by their default of non competitive rates.

Good point about cash back credit cards too. I just take the approach of that money, as a bonus that I never had before. But when we become totally cashless with credit cards, Apple Pay and the like some how WE WILL PAY and DO PAY for those supposed freebies and administrative costs all built into the price of the goods. We should go back the the 60’s with cash only or in house credit.

November 21, 2019
6:51 pm
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Norman1 said
The interest calculation and payment cadence is mentioned in their AcceleRate Registered Retirement Savings Plan product page:

AcceleRate Variable RRSP

  • The AcceleRate Variable RRSP gives you the no-fee flexibility of our savings account while keeping your funds and interest free of tax. This is also a great option to start saving to invest into a RRSP GIC.
  • You may redeem or transfer your funds at any time.
  • Your interest will be calculated on your daily closing balance and paid annually on December 31.
  • All deposits 100% guaranteed by the Deposit Guarantee Corporation of Manitoba. This includes principal and interest.

  

Thank you, Norman1

November 21, 2019
8:16 pm
Norman1
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Same applies to their variable rate TFSA. Interest paid on December 31 rather than at the end of each month.

One will receive a bit less interest with that, because the compounding will be once a year at December 31, instead of at the end of each month.

With the current rate of 2.30% per annum, one will receive closer to 2.30% in 12 months than the 2.32% one would receive with monthly compounding.

November 21, 2019
8:58 pm
Oscar
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Duca does this also for RRSP savings accounts. Interest isn't deposited monthly but it is still being earned.

November 22, 2019
1:19 pm
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Just checked my Hubert RRIF Savings Account (something that Oaken does NOT have) and I am receiving interest monthly on a $200 balance.

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