Scotiabank Momentum Plus Savings Account - 3 % Interest Rate - Up to March 10, 2019 | Page 2 | General comparisons | Discussion forum

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Scotiabank Momentum Plus Savings Account - 3 % Interest Rate - Up to March 10, 2019
September 27, 2018
7:52 pm
rfdm4g4g9
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theodor said

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  

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!

September 27, 2018
7:55 pm
rfdm4g4g9
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Loonie said
I didn't follow all the calculations, but does this mean you consider it false advertising?  

Yes. You are not going to earn 3 % no matter what premium period you choose. The average return will be much less!

September 27, 2018
10:07 pm
Loonie
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This is the sort of thing that reminds me that there's a lot more involved in choosing a bank than what DBRS has to say about it!

September 30, 2018
7:30 am
theodor
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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?

September 30, 2018
3:27 pm
bali
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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 10sf-smile and less at the end of the term.

September 30, 2018
4:25 pm
Loonie
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If the bank wanted to impress upon us how tough things were for them, and to hiint that they were losing money, you can be sure the math would be different!

October 7, 2018
12:49 pm
rfdm4g4g9
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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 🙂

October 16, 2018
9:55 pm
hotmony
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Scotia savings is a mess..

Today I was told straight 3% till end of March or something new money or close and open a new account what the hell is goin on with them..

October 17, 2018
8:50 am
toto
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They also have an add on Facebook that I commented on , and a Scotia rep replied to my comment immediately, because I gave a negative comment.

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