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Scotiabank Momentum Plus Savings Account - 3 % Interest Rate - Up to March 10, 2019
September 17, 2018
6:42 pm
rfdm4g4g9
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https://www.scotiabank.com/ca/en/personal/bank-accounts/savings-accounts/momentum-plus-savings-account.html

Its a weird promo made of 3 interest rates - Regular 1.05% , Bonus 1.05% and Premium period interest of upto 0.90 %.

So combined all 3 it is up to 3 %.

The premium period almost acts as a GIC

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1.New money will earn bonus interest until March 10, 2019 if you have enrolled by 11:59pm EST on that date. Bonus interest earned prior to and during the month of enrollment will be paid within 7 days after the end of that latter month. Bonus interest earned in subsequent months will be paid within 7 days after each such month. Where an enrollment takes place on the last day of a month, Bonus Interest will be paid within 7 days after the end of the month following. A ScotiaCard® is required for enrollment.

2
“new money” is money transferred from a non-Scotiabank account

3
Regular Interest is calculated by applying the Regular Interest Rate to your daily closing balance and is paid monthly. Refer to Current Rates Page for current Regular Interest Rates, which are subject to change.

4
A maximum of five Premium Periods at any one time, each of which can have a length of 90 days, 180 days, 270 days, or 360 days. For each Premium Period, Premium Interest is calculated daily by applying the Premium Interest Rate to each deposit, including any accumulated Regular Interest, until the end of the Premium Period. Premium Interest is paid at the end of each Premium Period, so long as NO DEBIT TRANSACTION HAS OCCURRED within that Premium Period. When a debit transaction occurs, no Premium Interest is payable for that Premium Period and a new Premium Period of the same length will commence the same day. Refer to Current Rates Page for current Regular Interest Rates, which are subject to change.

5
Self-Service Transfer means a transfer to your other Scotiabank account without the help of a Teller, including through Scotia OnLine®, Scotiabank, Mobile Banking and Contact Centre. The MomentumPLUS Savings Account does not have ABM or Point of Sale access or automated direct bill payment functionality.

6
Deposits are eligible to be insured under the CDIC Act only if they are in Canadian Currency, have a term of 5 years or less and are payable in Canada. Please see CDIC Deposit Insurance Information for further details.

September 18, 2018
6:14 am
Brimleychen
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The big bank always play the number games: Premium Periods. I don't believe there is any benefit for non-scotia customers.

September 18, 2018
9:40 am
rfdm4g4g9
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I am confused with the whole premium period thingy.

I already have a checking account with Scotia. So if I open this Momentum account with them - in the same account, I can have up to 5 premium periods? Or do I have to open 5 Momentun accounts with them for 5 periods?

Say I have $ 300,000 . Can I open 3 premium periods of 90 days each for $ 100,000 each?

Say I en cash one of them ( $ 100,000 ) earlier than 90 days, I will lose premium interest on it. But what about the other 2 - $ 100,000 for 90 days, will they remain unaffected & I get premium interest on them?

I mean are all the premium periods mutually exclusive of each other, or because they are under the same account, even if you withdraw from 1 premium period it affects all the other's too.

TIA

September 18, 2018
10:47 am
rqs
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If you think you can actually "earn" 3%, check out this thread discussing their earlier similar promotion.

https://www.highinterestsavings.ca/forum/general-comparisons/scotiabank-momentum-savings-premium-account-up-to-2/

September 18, 2018
4:05 pm
rfdm4g4g9
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rqs said
If you think you can actually "earn" 3%, check out this thread discussing their earlier similar promotion.

https://www.highinterestsavings.ca/forum/general-comparisons/scotiabank-momentum-savings-premium-account-up-to-2/  

yeah what a confusing promo full of gimmicks, almost misleading & deceptive, but legal.

I think I'll pass on it. Too vague & ambiguous for me. And I actually have a checking account with them but I'll still pass on it.

So people who don't even have an account with them, I don't see them going for it.

RBC - 3 % is at least more simple.

September 18, 2018
7:47 pm
AltaRed
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I bank at Scotia but didn't try to understand the promo, i.e. it is bloody complicated. It's all one account, meaning as you pass through each 'window' or 'premium period' you up the interest rate you will receive, i.e. the longer the money says, the more it earns.

Since it has to be new money and not from another Scotiabank account, I don't know how I'd get money in digitally/electronically anyway without it first passing through my Scotia chequing account.

Their prior promo was easy to understand. My ex put a lot of cash through that promo. I just don't have enough cash in any HISA anywhere to make it worth my while moving it around (cash being 3-4% of my total investable assets).

September 19, 2018
8:04 am
rfdm4g4g9
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AltaRed said
I bank at Scotia but didn't try to understand the promo, i.e. it is bloody complicated. It's all one account, meaning as you pass through each 'window' or 'premium period' you up the interest rate you will receive, i.e. the longer the money says, the more it earns.

Since it has to be new money and not from another Scotiabank account, I don't know how I'd get money in digitally/electronically anyway without it first passing through my Scotia chequing account.

Their prior promo was easy to understand. My ex put a lot of cash through that promo. I just don't have enough cash in any HISA anywhere to make it worth my while moving it around (cash being 3-4% of my total investable assets).  

Yeah that's what I am trying to figure out! My Scotia checking is directly linked to my Tangerine, where I can transfer money in and out, both ways.

Not sure if I can link this Scotia Momentum Savings account directly to my Tangerine or not, and transfer money in & out, the same way you do with Scotia checking.

Always a lot harder to link Savings accounts directly to Tangerine, Simplii etc, as lot of times they need VOID checks etc, which Savings accounts don't have 🙁

September 19, 2018
8:17 am
rfdm4g4g9
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Regular Interest - 1.05 %
Bonus Interest - 1.05 % up to March 10, 2019
Premium Period 90 days - 0.75 %

I am OK with leaving money untouched for 90 days.
180 days, 270 days & 365 days is a bit too much for me.

So suppose I move money from my Tangerine into this say by tomorrow Sep 20.

And leave the money untouched till Dec 20 i.e 90 days.

Will I get 1.05 + 1.05 + 0.75 = 2.85 % rate on it for the entire 90 days? - till Dec 20.

Or will there be some average gimmicky rate where the effective rate will be less than 2.85% for those 90 days up to Dec 20 ?

Since the bonus rate of 1.05 % is up to March 10, 2019 & the 90 days premium period ends before that, I am guessing I will get all the 3 interest rates - Regular, Bonus & Premium period - 1.05 + 1.05 + 0.75 = 2.85% for the 90 days.

Are my calculations correct?

September 19, 2018
8:37 am
canadian.100
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rfdm4g4g9 said
Regular Interest - 1.05 %
Bonus Interest - 1.05 % up to March 10, 2019
Premium Period 90 days - 0.75 %

I am OK with leaving money untouched for 90 days.
180 days, 270 days & 365 days is a bit too much for me.

So suppose I move money from my Tangerine into this say by tomorrow Sep 20.

And leave the money untouched till Dec 20 i.e 90 days.

Will I get 1.05 + 1.05 + 0.75 = 2.85 % rate on it for the entire 90 days? - till Dec 20.

Or will there be some average gimmicky rate where the effective rate will be less than 2.85% for those 90 days up to Dec 20 ?

Since the bonus rate of 1.05 % is up to March 10, 2019 & the 90 days premium period ends before that, I am guessing I will get all the 3 interest rates - Regular, Bonus & Premium period - 1.05 + 1.05 + 0.75 = 2.85% for the 90 days.

Are my calculations correct?  

Totally correct - I phoned Scotiabank twice and got that confirmed. The 1.05% Bonus is only until March 10th. After March 10 you receive the regular rate 1.05% plus premium rate depending on premium period selected.

Also, the "new money" brought in can go via your Scotia chequing or itrade - they are able to track as new money. The new money does not have to go directly from eg Tangerine to the Momentum Plus Savings.
If you go for the 360 day term, you are getting 3% for approx just under 6 months and then 1.95% for the remaining approx 6 months.
It is not the most straightforward offer, but once your understand it, it may work for you.

September 19, 2018
11:22 am
Londonguy
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It's not my intent to only pick on BNS for offers structured like this, but this offer made my head hurt, so I just had to comment...

--- sarcasm on

Fall Savings Special !!!

8.25% paid on all savings deposits for eligible non-customers who already have a savings account at Scotiablank. Deposits greater than $100 not eligible for promotional rate, above which our regular savings rate of 0.05% will apply. Applicant agrees to allow Scotiablank and its business partners to harvest applicant's personal information collected in the application process for relentless marketing purposes for the next 40 years. Applicants will be required to furnish either proof of the holding of a university level degree in mathematics or alternatively answer a series of skill-testing questions to establish their ability to understand the offer. Offer expires September 16, 2018. Offer not valid in BC, ON, QC, NF, AB, SK, PE, NS, NB or MN.

--- sarcasm off

September 20, 2018
10:33 am
rfdm4g4g9
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Is moving money from the Scotia Momentum savings account to the Scotia checking account after the premium period gets over, Free?

Or is there a $ 5 debit charge or something like that.

September 21, 2018
11:53 am
rqs
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The maximum rate you are able to earn is 2.85% and you can earn that by making your deposit any time before December 10, 2018 and choosing the 90 day premium period. Any later deposit date or premium option results in a diminishing return.
Again there is no possible way of earning 3%.

September 21, 2018
11:58 am
gicjunkie
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My opinion is that these rules are created to be over complicated so that the consumer is totally confused about how to achieve the highest interest benefit. My conclusion is to avoid these promotions like the plague. The terms stack the odds against the customer achieving maximum benefits. Kind of like an insurance policy - the insurance company wants your money, but the rules and exceptions in the fine print preempt them from having to pay a claim.

September 22, 2018
12:05 pm
rqs
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gicjunkie ...
I agree with your opinion but not your conclusion. Avoiding "these promotions like the plague" could be equivalent to cutting off your nose to spite your face.
It would be better to beat them at their own game. Either calculate (or read on this website) what the best option is available in their offer and then make an informed decision as to whether or not it works for you. In this case the offer is optimized at 2.85% for deposit on or before Dec. 10 with the 90 day premium period. After 90 days, pull out.

September 23, 2018
7:38 am
gicjunkie
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Re: "make an informed decision as to whether or not it works for you"

I respect anyone's freedom of choice regarding investing in these types of accounts. I guess I am just saying that at this point in my life, I am not inclined to try to figure out what should be a simple investment opportunity. It's just a bank account, with a limited time interest rate promo. Doesn't have to be rocket science. I give credit to you or anyone else who is willing to spend the time and effort to analyse the small print and make this opportunity work . I am just saying that I am not willing to do so. Just tell me you're giving x% for a set number of months and I'll consider it. The more complicated it is, the more it favors the institution, and I'm not interested.

September 23, 2018
7:45 pm
Loonie
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Funny how 3.0 became 2.85, according to rqs's math.

For me, although I agree 100% with gicjunkie's perspective, there is something else that concerns me and would make me stay away from this offer.
The bank is clearly trying to scoop its competitors and make itself look like it's making a great offer. In the long run, what is better for me is keeping those NON-Big-Five-Six-or-Seven competitors healthy.

From what I've seen, it tends to be the Big Banks that most often make these very complicated offers which turn out to be less than they first seemed to be. They are counting on "brand familiarity" if not "loyalty", and on consumers who won't read the fine print or who can't figure it out. It's a strategy I won't support.

I think of it like reading the labels on processed food. The more ingredients/T&C, the less healthy it's likely to be for me.

September 26, 2018
9:08 am
rfdm4g4g9
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rqs said
The maximum rate you are able to earn is 2.85% and you can earn that by making your deposit any time before December 10, 2018 and choosing the 90 day premium period. Any later deposit date or premium option results in a diminishing return.
Again there is no possible way of earning 3%.  

True right now the maximum you can earn is 2.85 % for 90 days.

The offer came on Sep 10, if you had opened it then for 180 days, up to March 10, then the maximum you would have been able to earn is 2.90 %.

But yes you will never be able to earn 3 % with this offer, even with the 270 days and 365 days offer, as Bonus Interest of 1.05 % is only up to March 10 i.e 180 days from Sep 10 to March 10.

180 days at 2.9 % was the best option, but now that option is gone, 90 days at 2.85 % & then pulling the money out after 90 days is the next best option 🙂

September 26, 2018
1:56 pm
Loonie
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I didn't follow all the calculations, but does this mean you consider it false advertising?

September 26, 2018
4:20 pm
theodor
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rfdm4g4g9 said
Regular Interest - 1.05 %
Bonus Interest - 1.05 % up to March 10, 2019
Premium Period 90 days - 0.75 %

I am OK with leaving money untouched for 90 days.
180 days, 270 days & 365 days is a bit too much for me.

So suppose I move money from my Tangerine into this say by tomorrow Sep 20.

And leave the money untouched till Dec 20 i.e 90 days.

Will I get 1.05 + 1.05 + 0.75 = 2.85 % rate on it for the entire 90 days? - till Dec 20.

Or will there be some average gimmicky rate where the effective rate will be less than 2.85% for those 90 days up to Dec 20 ?

Since the bonus rate of 1.05 % is up to March 10, 2019 & the 90 days premium period ends before that, I am guessing I will get all the 3 interest rates - Regular, Bonus & Premium period - 1.05 + 1.05 + 0.75 = 2.85% for the 90 days.

Are my calculations correct?  

Dear Sir:

I read with interest about your new Scotiabank Momentum Plus Savings Account promotion promising an interest rate of up to 3% and would appreciate if you could explain how this rate can be achieved. I understand that the regular rate of 1.05% plus the bonus interest of 1.05% plus premium period interest for a term of 360 days of 0.9% does indeed add up to 3 percent. However the terms also stipulate that the funds must remain untouched for 360 days but that the bonus interest of 1.05% is only paid for
180 days. In other words I earn 3% for 180 days and 1.95% for the remainder of the term giving me a total return of 2.475%. On the other hand if I opt for the 180 day period and started at the beginning of the term I would earn 1.05% regular, 1.05% bonus and
0.80 % period interest for a total of 2.9%. Am I not understanding the terms correctly or am I correct that your advertisement is false and it is impossible to earn 3% and that the longer you commit your funds the less you earn? I simply refuse to believe that a major bank like Scotia would deliberately mislead clients and look forward to your explanation.

Thank you!

Theodor Schmidt

September 26, 2018
8:33 pm
Loonie
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Who did you send your letter to, Theodor?

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