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.

October 26, 2018
6:40 am
fabafter50
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https://www.scotiabank.com
So their "offer" just went up to 3.2% today.
I had opened the account as I have a large GIC coming due early December and figured I could make 2.85% for the three months. As I opened the account I was asking the clerk if I could request that the funds go directly into the Momentum account when they became available. She said they could. However I went home and read the fine print and was shocked to realize that the "offer" only applies to NEW money that is coming in from another bank. Not my GIC that is currently at Scotiabank, which she didn't bother to mention.

October 26, 2018
11:03 am
rqs
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So , the most you can make is now 3.05% (not up to 3.20%) and that is for 90 days expiring on or before March 10/19. Better than before but the "up to 3.20%"sf-confused is still deceptive!

October 26, 2018
11:54 am
hotmony
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Id rather take less 3% at cibc than put up with their bs. Sorry scotia this product is fail. There's been a loss of confidence.

December 25, 2018
8:42 pm
antinatalism
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Why isn't this on https://www.highinterestsavings.ca/chart/? I think that short-term rates ought be listed too?

December 25, 2018
10:04 pm
Loonie
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antinatalism said
Why isn't this on https://www.highinterestsavings.ca/chart/? I think that short-term rates ought be listed too?  

Personally, I think it would be impossible to list this promo on a chart even if there were the desire to do so. It is too convoluted. There is no consistent predictable rate of return.

December 26, 2018
5:48 am
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Loonie said

Personally, I think it would be impossible to list this promo on a chart even if there were the desire to do so. It is too convoluted. There is no consistent predictable rate of return.  

True, one must read the detail and pick a period - I took it for the 90 day period which has just ended. Total Interest 3.05% comprised of 1.05% regular int + .75% premium int for 90 days + 1.25% bonus int. = 3.05%. I knew exactly what my rate of return was going to be. It was certainly predictable to me!

December 26, 2018
6:55 am
Top It Up
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canadian.100 said

True, one must read the detail and pick a period - I took it for the 90 day period which has just ended. Total Interest 3.05% comprised of 1.05% regular int + .75% premium int for 90 days + 1.25% bonus int. = 3.05%. I knew exactly what my rate of return was going to be. It was certainly predictable to me!  

Where so many seemingly never understood the offer, @canadian.100 figured it out right from the get go and received the advertised interest rate ... hmmm ... looks like Scotiabank mighta got gaslighted on this forum for absolutely no reason.

December 26, 2018
7:58 am
Norman1
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canadian.100 said

True, one must read the detail and pick a period - I took it for the 90 day period which has just ended. Total Interest 3.05% comprised of 1.05% regular int + .75% premium int for 90 days + 1.25% bonus int. = 3.05%. I knew exactly what my rate of return was going to be. It was certainly predictable to me!

That's not going to be the case for the next 90 days because the 1.25% bonus interest ends on March 10, 2019, in 74 days.

If one deposits now and withdraws the funds on March 11, one will receive 2.25%. One will lose the 0.75% portion because the withdrawal would be before the 90 days is over.

If one leaves the funds in for 90 days (December 27 to March 26), one will receive 74 days (December 27 to March 10) of 1.05% + 0.75% + 1.25% = 3.05% and 16 days (March 11 to March 26) of 1.05% + 0.75% = 1.80% for an average of 2.83%.

It is a complicated offer. The original criticism that one cannot achieve 1.05% + 0.90% + 1.25% = 3.20% is correct. That's because one needs to leave money in for 360 days to get the 0.90% part. Yet, the 1.25% part is only for 182 days from September 10, 2018 to March 10, 2019.

December 26, 2018
8:32 am
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Of course, if you find the Scotiabank offering to be arithmetically challenging, you can always opt for the ultra-simplistic Ideal Savings 150-day 3.25% GIC.

December 26, 2018
8:38 am
fabafter50
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It's a ridiculous convoluted offer. I moved my big chunk of change from Scotia to Simplii for the much simpler offer of 3.15%, no math or BS involved.sf-cool

December 26, 2018
9:00 am
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fabafter50 said
... I moved my big chunk of change from Scotia to Simplii for the much simpler offer of 3.15%, no math or BS involved.

DOES Simplii Financial have it's own distinct CDIC coverage or DOES it fall under CIBC's umbrella coverage?

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