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RBC High Interest eSavings: Now 2.15% until Dec. 1, 2017 on new deposits before August
July 17, 2017
10:41 pm
Norman1
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RBC has increased the regular rate on their eSavings account from 0.5% to 0.65%. That ups their 2% on new deposits offer to a 2.15% offer:

Move your money from another bank to the RBC High Interest eSavings Account by August 1, 2017 and earn 2.15% interest1 on your new deposits until December 1, 2017.

New and existing clients with an RBC High Interest eSavings Account can take advantage of this limited time offer!

1 Applies to funds from non-RBC sources introduced to the RBC High Interest eSavings Account between June 1, 2017 and August 1, 2017 (the Deposit Window). Funds transferred from other RBC Royal Bank accounts to the RBC High Interest eSavings Account do not qualify for this offer. To fully benefit from this offer and earn the 2.15% annual interest, you must make all deposits to the RBC High Interest eSavings Account by Aug 1, 2017 and maintain them in that account until December 1, 2017. For current interest rates, please refer to our RateSetter available at any RBC Royal Bank branch, or visit http://www.rbcroyalbank.com/ra.....l#esavings. For full terms and conditions, click here.

July 18, 2017
2:16 am
Loonie
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thanks, Norman!

July 18, 2017
9:20 am
cristunity
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Hi - thanks for pointing this out. I called RBC today and found out that the funds don't have to be sent directly from an external account to the RBC eSavings account (that account of mine isn't linked to any external accounts). I was told that as long as the incoming new money is transferred from an RBC savings/chequing account to the eSavings account within 48 hours, it will be included in the promotion.

Thanks again for pointing this out. I had no idea this promo existed.

July 19, 2017
7:48 pm
Norman1
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cristunity said
… I called RBC today and found out that the funds don't have to be sent directly from an external account to the RBC eSavings account (that account of mine isn't linked to any external accounts). I was told that as long as the incoming new money is transferred from an RBC savings/chequing account to the eSavings account within 48 hours, it will be included in the promotion.

Thanks again for pointing this out. I had no idea this promo existed.

You're welcome!

The way the bonus interest is calculated, described in the offer's terms, suggests that new money deposited first into another RBC account and transferred to an eSavings account will be included. However, this statement, in the terms, could mean such indirect new money may not be included:

A. ELIGIBILITY

To be eligible for this eSavings Bonus Offer, you must have an eSavings account and new funds (from non-RBC sources) must be introduced to the Bank by way of deposit to your eSavings Account, during the Deposit Window.

I e-mailed RBC about new money being direct-deposited first into another RBC account and then transferred to the RBC eSavings account. RBC replied that such new money would be included in the offer.

Also, be aware that money, new to the eSavings account, also needs to be new to "all Deposit Accounts [including the eSavings account] … held by you in sole and joint ownership."

July 24, 2017
5:25 pm
Loonie
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Now that Home Bank is starting to decrease rates (as reported on another thread, through brokers), and in view of the fact that deposit rates have not generally increased subsequent to BoC rise, does any one see any wiggle room where RBC might, between now and Dec 1, decrease this 2.15% rate and put it back to 2.0 or whatever?
Just checking...

July 24, 2017
7:34 pm
Norman1
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I read the Terms & Conditions again.

I actually can't find any statement there committing RBC to keep the "Promotional Interest Rate" at 2.15% or 2%. sf-confused

July 24, 2017
11:08 pm
Loonie
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But don't you have to leave the money in there until Dec 1 to get the promo interest? or did I misunderstand?

Might be a good question to ask the chat line - and save the answer if it's favourable.

July 25, 2017
8:16 am
Norman1
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Answer is not simple.

The eSavings promo interest (2.15%) is

  1. the regular interest (was 0.5%, now 0.65%) plus
  2. bonus interest (1.5%).

I think the regular interest part is earned daily and paid monthly. One doesn't need to leave money until December 1 for that.

For the bonus interest (1.5%), one does need to keep the eSavings account open until it is paid sometime after December 1 to receive it.

The bonus interest will be earned daily until August 2. That's the "Deposit Window" period. During the "Post Deposit Window" period, August 2 to December 1, bonus interest will be earned on the minimum balance in that period.

So, withdrawing the money in the Post Deposit Window period will bring the minimum balance to $0 and result in no bonus interest for August 2 to December 1. There will still be bonus interest for the Deposit Window period from June 1 to August 1, when it was earned on the daily closing balance.

July 25, 2017
8:37 am
rqs
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I asked the following question on-line.....
If funds deposited before Aug 1 (say $300K) and then a withdrawal made before Dec.1 (say $100 on Sept 15), Is bonus interest still earned on the withdrawn $100K for the time it was in the e-savings account ( I.E. 1.5 months)?

The response was ......
My name is Chantal, your banking advisor and I will be pleased to assist you.
Yes, if a withdrawal is made during the post deposit window (Aug. 2nd to Dec. 1st, 2017) you will earn interest for the period in which the qualifying deposit was in the eSavings account. From your example the with drawn funds will have the promotional rate until Sept. 15th.

July 25, 2017
1:37 pm
Loonie
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Thanks for posing the question, rqs.
I'm not sure I trust Chantal's answer as it appears to contradict the terms.

My suggestion would be that anyone who is planning on using this promo send in their own question and keep their chat record as evidence. Be sure to use their terminology when describing the various rates so as not to get hung up on technicalities. Maybe quote the Terms and ask for clarification.

RBC could have written this up in much simpler language. I wonder why they didn't.

In any event, so far there doesn't seem to be anything that binds them to this rate if the base rate goes down. a la Tangerine, although we have not seen the base rate go down during promos as it's already so low!

July 25, 2017
3:06 pm
skibum
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In reply to the person who was told he had to make an appointment to open this account - there is no appointment necessary to open any account if you are already an RBC client. I just opened the e-savings account online - and made it "joint" with my spouse. (After I completed an easy "add account" request, RBC sent a communication via my husband's online banking with a link for his approval. Once he accepted, it was opened right away). I have several banks set up via my credit union account (which took awhile) and transfer back and forth between them all. Be aware - sometimes the funds are "held" for a certain period but that will also happen with cheques and drafts.

July 25, 2017
5:31 pm
Norman1
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Loonie said
Thanks for posing the question, rqs.
I'm not sure I trust Chantal's answer as it appears to contradict the terms.
… 

I guess it depends on how one interprets this definition in the Terms & Conditions:

“Post Deposit Window Balance”, with respect to any day during the Post Deposit Window, is the least of the following amounts:

a. the lowest End of Day eSavings Balance recorded during the Post Deposit Window minus the End of Day eSavings Balance on May 31, 2017;

b. the lowest End of Day Net Balance recorded during the Post Deposit Window minus the End of Day Net Balance on May 31, 2017; or

c. $1,000,000.00;

I read it as

“Post Deposit Window Balance”, with respect to any day during the Post Deposit Window [period from August 2, 2017 to December 1, 2017], is the least of the following amounts:

a. the lowest End of Day eSavings Balance recorded during the [entire] Post Deposit Window minus the End of Day eSavings Balance on May 31, 2017;

b. the lowest End of Day Net Balance recorded during the [entire] Post Deposit Window minus the End of Day Net Balance on May 31, 2017; or

c. $1,000,000.00;

Perhaps, RBC meant

“Post Deposit Window Balance”, with respect to any day during the Post Deposit Window [period from August 2, 2017 to December 1, 2017], is the least of the following amounts:

a. the lowest End of Day eSavings Balance recorded during the Post Deposit Window [up to and including that day] minus the End of Day eSavings Balance on May 31, 2017;

b. the lowest End of Day Net Balance recorded during the Post Deposit Window [up to and including that day] minus the End of Day Net Balance on May 31, 2017; or

c. $1,000,000.00;

July 25, 2017
5:39 pm
Loonie
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I read it the same way as you, Norman, as that would be consistent with other Terms that I have seen elsewhere..
The correct answer may depend on exactly how you pose the question to them.
You aren't going to know until December if you interpreted correctly unless you can get a very clear answer which indicates that the person giving the answer understands the T&C and their ambiguity. Probably means speaking to a supervisor.

I have been considering using this offer but haven't done anything yet. It seems to be getting less desirable by the minute!

July 26, 2017
8:26 am
Norman1
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I'll send RBC a message. I'll ask directly about the interpretation of "Post Deposit Window Balance" in the offer's terms and conditions and what that interpretation means to any new funds withdrawn during the "Post Deposit Window".

I think a message is better than a call. It allows the customer agent to forward my exact question to the right people, if needed.

July 26, 2017
10:57 am
rqs
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This morning I attended a relatively large RBC branch and asked the same question regarding the "Post Deposit Window Balance" ... specifically whether bonus interest is earned on funds removed before Dec. 1 (Eg. $100K deposited by Aug.1, $20K withdrawn on Sept 15) .
a) The teller came up with the logical answer. I.E the withdrawn funds do earn bonus interest to withdrawal date.
I asked if he could confirm. He then went to "Higher Up" to confirm
b) HU said the entire $100K would not be eligible for any Bonus Interest !!!
After I stopped laughing, the teller went to the Branch Manager
c) BM confirmed that bonus interest would be earned on the withdrawn $20K until withdrawal date.

So ... still waiting for the definitive answer

July 26, 2017
11:55 am
Loonie
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Only the lawyers and computer programmers know for sure - and they're not tellin'. sf-confused
They all want to surprise us in early Dec.

Seriously, though, why would they go to all the trouble of all this weasel wording if it were in our favour?

July 26, 2017
8:27 pm
moneyman
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Did go to RBC today to open up this account. He is the scoop. If you park your money for the entire period aug 1- Dec 1 those funds receive 0.65% per month then a bonus payment of 1.5% at the end. Any funds you withdraw prior to dec 1 will receive only 0.65% to the date of withdrawal. So if your gonna park and wait it out it's okay. But if your gonna withdraw earlier it's a loser at 0.65%. Don't be the sucker who takes it out a day early you'll be only getting the 0.65 for the entire term.

July 27, 2017
9:08 am
rqs
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Re. "He is the scoop. ..... Any funds you withdraw prior to dec 1 will receive only 0.65% to the date of withdrawal. "

What makes you think your Bank branch employees are any more knowledgeable than mine? What is obvious is that the branch employees don't know any more than we do...very probably less!

Is there any way of getting through to a senior official who will put the definitive answer in writing?

July 27, 2017
4:14 pm
moneyman
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1 Applies to funds from non-RBC sources introduced to the RBC High Interest eSavings Account between June 1, 2017 and August 1, 2017 (the Deposit Window). Funds transferred from other RBC Royal Bank accounts to the RBC High Interest eSavings Account do not qualify for this offer. To fully benefit from this offer and earn the 2.15% annual interest, you must make all deposits to the RBC High Interest eSavings Account by Aug 1, 2017 and maintain them in that account until December 1, 2017. For current interest rates, please refer to our RateSetter available at any RBC Royal Bank branch, or visit http://www.rbcroyalbank.com/ra.....l#esavings. For full terms and conditions, click here.

I spoke with the bank manager and they pointed out the line "to fully benefit from this offer and earn 2.15% annual interest, you must make ..... and maintain them in that account until December 1.
That's why they pay the interest (bonus) at the end and not monthly.
Given that's it's RBC how could we expect them to be any more generous than that.

July 27, 2017
4:54 pm
Loonie
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Moneyman's version of reality makes sense to me - and corresponds to what I thought in the first place. It's the one that is in the bank's favour, which is what we have to expect from RBC. The other opinions offered by various bank employees don't seem to include any rationale or evidence to support their opinions. It's like a term deposit for 4 months, but a lot of people will probably get caught on this one, either inadvertently or when they realize they need to take out some of the money.

However, it is UNLIKE a term deposit because they don't actually guarantee the rate, no matter how you slice it.
The T&C specify:
"Regular Interest Rate” is the interest rate for the eSavings Account posted on our RateSetter. On June 1, 2017, the Regular Interest Rate was 0.50% per annum and is subject to change without notice".
They have already changed it once (upward), but there is nothing to prevent them from changing it again (downwards or upwards) any time after Aug 1. If they push it down, you are stuck, because if you take the money out, you'll get only the basic rate.

I don't think I'm going to participate in this one, although I had been considering it. Too much weasel wording for me. I might do it if the rate weren't subject to change, but not worth the effort to open a new account at another FI when not guaranteed, especially considering that it's highly unlikely that they will give me a good reason to keep my money there after Dec 1.

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