7:52 pm

June 15, 2016

theodor saidDear 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

What they are doing is indeed deceptive, misleading and false advertisement.

Your letter shoulde be sent to the Financial Ombusdsman or something.

The sad thing is lot of people will fall for this Ad and just assume they earned 3 %. Very few people do interest calculations at the end of the month or term to see if the right interest was paid or not. People just assume the bank calculations are right!

No matter what amount you invest ot what permutations and combinations you do - 90 days, 180 days, 270 days or 365 days or whatever, you are never going to earn the FULL 3%, which they are advertising 🙁

Maybe a class action law suit should also be there, when people realise they were shortchanged!

7:55 pm

June 15, 2016

10:07 pm

October 21, 2013

7:30 am

November 4, 2015

Hi Loonie, my letter was sent to mail.president@scotiabank.com and copied to

rcarrick@globeandmail.com. I received a phone call from the bank and a lady tried to patiently explain how 1.05% and another 1.05% plus 0.9% does indeed add up to 3%. I tried my best to point out how false her math was which in turn resulted in an offer to supply me with a calculator. I even went as far as to suggest that if Scotiabank wanted to make a real splash why not offer a return of 100% and adjust the terms to paying that rate for one week and the rest of the year pay a rate of 1 percent. That would be the talk of the industry. (Sarcasm intended) It is so frustrating to be treated like a fool and to mislead without fear of consequences. If this claim of earning 3% interest does not qualify as false and misleading advertising, what will?

3:27 pm

June 22, 2016

There are many "laddered" GICs in which the rate increases throughout the term - nobody seems to complain that the average interest earned is less than the interest earned at the end of the ladder. Just think of this as a "reverse" ladder 1 yr GIC where you get 3% to March 10 and less at the end of the term.

4:25 pm

October 21, 2013

12:49 pm

June 15, 2016

They are advertising this **deceptive** promo heavily in ALL their branches with banner signs.

Also their ATM machines, the screen saver and the first Ad you see is this 3 % promo.

So whenever anyone from Scotia bank or Tangerine goes to withdraw cash from their ATM, they are bombarded with this Ad at the ATM machine 🙂

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