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August 14, 2014
10:52 pm
Loonie
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I'm not sure if this link will work, but you can google "bmo summer offer".
http://www.bmo.com/lp/edb/300c.....30-JBBMO16
Should be posted on "Promos" page.

Basically, they are offering up to $300 free dollars if you open a chequing and savings account and set up a direct deposit and preferably deposit a certain minimum, as follows. Only available to those who do not already have a bank account with BMO and who have not had one since March 1, 2014. More terms and conditions posted should be studied. EXPIRES 31 AUG 2014. Some people may not wish to open new accounts in case it affects their credit rating to have opened too many accounts in a given time period. The accounts have fees, which can be avoided if your deposit is large enough, which is probably worth your while in this low-interest environment, if you have the cash. You must leave the money in until end of this calendar year - it should make a good contribution to your Christmas bills which arrive in January.sf-smile

"Terms and Conditions
These offers are available from June 1, 2014, – August 31, 2014, inclusive. You have the opportunity to earn up to $300 in cash bonuses when you open a new Chequing Account and a new Savings Account (both terms are defined below):

Step 1: To qualify for the first $100 cash bonus you must:
◦Open a new Canadian Dollar Primary Chequing Account (“Chequing Account”) within a new Plus Plan, Performance Plan or Premium Plan (collectively a “Plan”) and make a deposit of any amount by August 31, 2014. Any Plan part of the New Canadians, Canadian Defense Community Banking packages, Senior and BMO Registered Disability Savings Plan discounted banking programs qualifies for the offer; And
◦Set up a recurring direct deposit from your employer or your pension into the Chequing Account and have the direct deposit transaction credited to the Chequing Account by October 31, 2014 Step 2: To qualify for the second $100 cash bonus you must:
◦Meet all the requirements listed in Step 1; And
◦Set up a recurring pre-authorized bill payment from the Chequing Account and have the pre-authorized bill payment transaction debited from the Chequing Account by October 31, 2014. And
◦Sign-up for and log in to BMO Online Banking by October 31, 2014Step 3: To qualify for the third $100 cash bonus you must:
◦Meet all the requirements of Step 1 and Step 2 of the Chequing Account OfferAnd
◦Open a new Smart Saver Account or Canadian Dollar Premium Rate Savings Account (collectively a “Savings Account”) and make an initial deposit of at least $3,000 by August 31, 2014 And
◦Maintain a balance of at least $3,000 in the Savings Account at all times until December 31, 2014 to qualify."

August 14, 2014
11:19 pm
Jack Manning
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Loonie, at first glance it looks fine but I was thinking about the $2,500 minimum checking account balance to avoid the monthly plan fees and the $3,000 required to deposit and maintain a minimum balance in a savings account.

Their checking account pays no interest and the premium savings account pays only 0.25% interest annually.

Since there is about 4.56 months left until January-2-2015, the lost interest on $5,500, ($2,500+$3,000) is about $38.95.

I am using a 1 year 2.00% cashable GIC rate after 90 days from Oaken Financial for the above calculation.

Still, $261.05 is left in ones pocket if there are no other fees, charges etc, that we may not be known or considered.

August 14, 2014
11:25 pm
Loonie
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Right.
Better than the Tangerine deal though, if you have the cash to deposit and don't mind doing so. It might help to look at the deal as requiring a minimum 5500 deposit for 4+ months.
I'm sure Brian would want to remind us that the $300 would likely be taxable, as would be any interest in a taxable account.
I do like a Christmas bonus though...

August 14, 2014
11:43 pm
Jack Manning
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Loonie, if you had not invested $5,500 for 1 year at 2.40% at Peoples Trust, then the lost interest is $125.75.

The BMO $300 free dollars gets shrunk by 42% so if having $5,500 deposited for 4 to 5 months is going to get things done then one should take advantage of it.

August 15, 2014
12:07 am
Loonie
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A 4 month commitment is much shorter than a 1 year one though, so might work for some people.
I think that 4 months of the 1 yr GIC at Peoples would only be 5500 x 2.4% divided by 3 = $44.

If you took the bmo offer, you could then invest for the remaining 8 months at whatever deal seemed best at that time, knowing that you have already "earned" about 5.5% on your 5500 (300 divided by 5500 x 100).
IF the Oaken deal were still in force, you could then earn, for the remaining 8 months, 5500 + 300 x 2% x 2 divided by 3 = $77.
Total for 1 year = $300 + $77 = $377.
377 divided by 5500 x 100 = 6.85% return for the year.

Caveat: only works for $5500, not more.

Please let me know if I have misinterpreted or grossly miscalculated what can be done with this offer.

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