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Email this2:39 pm
March 31, 2022
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About 5 weeks ago I transferred funds into a Simplii HISA but assumed that the deposit would be treated as my account with DUCA....interest paid on the balance monthly.
When I checked my balance at Simplii I was surprised to find the interest added was only at 0.10%. Thinking there was a mistake made I spent 20 minutes on hold to get someone at the support line.
The representative informed me that the funds on account for the promotional period of Feb. 28/22 to June 30/22 would be averaged for that term and that the promotional interest rate would be paid based on that amount.
He also told me that the interest would be paid by the end of July/22.
This means a wait of up to a month before the interest is paid. Why?
I asked him how I might calculate the total amount of interest earned should I leave my funds untouched until July 1/22.
He could not help me and said he did not have access to the formula that Simplii uses to determine the total interest paid.
Because my deposits were incremental and started the 3rd week in March I wanted to be able to calculate my total return for the promotional period.
The representative sent me an email link to the terms and conditions of the promotion but this was of little help in answering my question.
I'm done with this company. I transferred all funds back to DUCA at a guaranteed 2 1/2% calculated monthly and guaranteed at that rate until Dec 31/22.
Lesson learned .....Dont take things at face value and read the fine print!
3:01 pm
April 6, 2013
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Simplii has historically paid the extra promotional interest after the end of the promotion instead of monthly. Simplii has been quite open about that in the terms of their offers.
As well, the average balance method is mathematically equivalent to the daily accrual calculation when one's balance doesn't fall below the balance at the start of the promotion for a new money promotion.
4:17 pm
March 15, 2019
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Norman1 said
Simplii has historically paid the extra promotional interest after the end of the promotion instead of monthly. Simplii has been quite open about that in the terms of their offers.As well, the average balance method is mathematically equivalent to the daily accrual calculation when one's balance doesn't fall below the balance at the start of the promotion for a new money promotion.
In plain English, does this mean the same method that Simplii has been doing forever?
4:37 pm
April 21, 2022
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COIN said
In plain English, does this mean the same method that Simplii has been doing forever?
How Simplii is different in respect to interest calculations is twofold. Base interest is calculated on the daily closing balance and paid out monthly, currently .10% and forms part of the average balance going forward. The bonus interest of 1.65% is calculated on average balance over the term of deposit, which does not compound as it is paid out as a lump sum about two weeks after the promo ends. In other words, you could have $100,000 on deposit and withdraw $1,000 halfway through the promo and your bonus interest would be calculated as an average balance of $99,500.
It's a bit weird, but that's how I understand it. Anyone can feel free to correct me.
5:27 pm
September 11, 2013
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That's how I understand it too, JohnnyCash, always been that way at Simplii, seems to upset some folks.
6:02 pm
March 15, 2019
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"The bonus interest of 1.65%"
I think you mean 2.65%?
6:10 pm
April 21, 2022
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COIN said
"The bonus interest of 1.65%"I think you mean 2.65%?
Good catch!
7:14 pm
April 6, 2013
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JohnnyCash said
… In other words, you could have $100,000 on deposit and withdraw $1,000 halfway through the promo and your bonus interest would be calculated as an average balance of $99,500.
…
Some folks are upset. But, the calculated interest works out to be the same.
Interest for half the days on $100,000 plus interest for half the days on $99,000 is the same as interest for all the days on the average of $99,500:
$100,000 * ½ * n / 365 * i + ($100,000 - $1,000) * ½ * n / 365 * i
= [$100,000 + ($100,000 - $1,000)] * ½ * n / 365 * i
= [$100,000 + 99,000] * ½ * n / 365 * i
= $99,500 * n / 365 * i
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