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Luminus 2.75% for 12 months on new deposits
September 27, 2018
10:03 pm
miro
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For a limited time, earn a BONUS 1% for up to 12 months on all new deposits to a Luminus Investment Savings Account*. From October 1, 2018, to September 30, 2019
Deposits are eligible to be used with registered, non-registered, and Tax-Free Savings accounts

Link

September 27, 2018
10:58 pm
Loonie
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I am not clear what this offer means. If it's good until Sept 30, 2019, what is it that's for a limited time only?

September 28, 2018
5:39 am
canadian.100
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Loonie said
I am not clear what this offer means. If it's good until Sept 30, 2019, what is it that's for a limited time only?  

All this means is that the offer can be terminated at any time for new signups. Those who have taken advantage of the offer will continue to get the bonus until Sept 2019, but no new sign-ups if and when the offer ends.
Likely they are doing that because they have a ceiling on the amount of money they want to attract.
Luminus seems to be heavy on fees and service charges which kill the interest bonuses. No me-to-me transfers - clumsy and archaic to get funds in and out.

September 29, 2018
4:49 pm
thisusernameforlease
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Believe it or not (and I had a hard time believing it), but people who opt into the promo are not guaranteed to get 2.75% until September 2019.

Instead, Luminus can reduce -- or eliminate -- the bonus rate at anytime between now and September 2019.

Yes, this is inane.

They are referring to the promotional rate as"variable." I suppose their marketing department found that more agreeable than "arbitrary" or "we just want people to put cash here and then kind of forget about it."

For the above reason, I'd recommend removing this from the promo page -- I don't see it as a legitimate promo (it could technically end in a month).

Perhaps someone from Luminus will realize that this is about the tackiest, most amateur promo ever, and will change the policy. Even the big banks don't do things this way, and they set the bar really, really low (just look at Scotia with their ridiculous Momentum promo).

September 30, 2018
7:54 am
Peter
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Where do they note that the promo rate is variable?

I understand that they could terminate the promo to new sign-ups, but existing sign-ups should still get the deal in such a case.

September 30, 2018
9:59 am
thisusernameforlease
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I am in full agreement with you. I didn't even know this kind of promotional model existed. I assumed -- like everyone else -- that Luminus was saying it could end the promo at any time, but anyone who got in before then would get 2.7% until September/19.

But I learned directly from Luminus that this is not the case. They are calling the bonus rate "variable," and it is not guaranteed.

They are reserving the right to change (read: lower or eliminate) the rate anytime between now September/19.

The reason I posted about this is frankly because I don't think Luminus should be doing this. I think a lot of people will assume they are earning 2.75% until September 19. Money they could have moved to EQ, Tangerine, or anywhere else (Meridian has a 1 year new money GIC at 3.25%) could be parked at Luminus earning 1.5% or whatever they decide.

Yes, technically speaking people are supposed to check their statements, etc. etc.

But if you think you are earning 2.75%, what is the likelihood that you will go online and confirm that periodically throughout a year? I think it's slim.

If Luminus is reading this: I don't know why you're doing this. I think it's going to really piss a lot of people off, and you will end up losing deposits and members.

September 30, 2018
4:31 pm
Loonie
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I agree; this is a bad promo. Not the first time Luminus has screwed up in my experience. I've been urging spouse to close down this account for several months, before the next annual fee kicks in. I don't belong to it myself.
It's not misleading in the way Scotia's appears to be, but it would have been better if they'd never made this offer. I'd be surprised if there was a mechanism in place whereby they would inform you if the rate went down.

October 1, 2018
7:28 am
canadian.100
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Small print on the Luminus site today. I do not see the term "variable" as referred to above by a poster. Their "normal" rate on ISA for a long time appears to be 1.75%. Of course, we know Luminus has lots of fees, service fees, membership fee and an annual fee.

*The promotional rate of 2.75% will be offered to any new deposits until September 30, 2019; after that our normal rate of 1.75% will be applied. Speak to a Member Relations Officer for full details.
**All credit union deposits are protected up to $250,000 through the Deposit Insurance Corporation of Ontario (DICO).

October 1, 2018
7:51 am
thisusernameforlease
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Canadian.100: I understand what you are saying, and I was under the same impression. It clearly says that the promo rate of 2.75% will be offered until Sep/19.

But when I contacted Luminus to enroll, I learned that Sep/19 only refers to the end date of the promotion itself. But the 2.75% rate is not guaranteed. They are calling it "variable." I have the email here to verify this (i.e. I'm not speculating or assuming -- I wouldn't do that).

So, if you enrol, you will start getting 2.75% as of today. Interest is paid out monthly. But you should log in periodically (I'd say once a week) to make sure that the rate is still being offered. And if not, you should have a plan to move the funds out. Luminus doesn't have me-to-me transfers, and their service charges for basic banking services are circa 1975.

As mentioned, I have never seen anything like this. I can't think of a worse promotion idea. Seriously, this is CEO-ousting level bad. I don't know what they are thinking (or drinking) over there.

As for Loonie's thought that Luminus would send out an email if the rates go down -- I think there is a 0% chance of them doing that (although it would definitely be the ethical thing to do...unfortunately most FIs don't use that as their standard for making decisions! They're more concerned about legal/illegal than about right/wrong).

October 1, 2018
8:09 am
thisusernameforlease
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OK I get it now:

They are not guaranteeing 2.75% until Sep/19.

Rather, they are guaranteeing the 1% bonus until Sep/19.

Right now, their ISA rate is 1.75%, so with the bonus is is 2.75%.

But at anytime between now and Sep/19, they can change (lower) their ISA rate.

So for example, if in January they lower their ISA rate to 1.25%, then people who enrolled in the promotion would get 1.25%+1% = 2.25%.

I am really unimpressed with their language around this promo, because unless you unpack things, it it easy to assume that the guaranteed rate is 2.75%. But what's really guaranteed is the 1% bonus.

October 1, 2018
4:19 pm
Loonie
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The offer is problematic as I said above. However, on the other hand, it is extremely unlikely that any rates will go down in that period, and Luminus has been consistent at 1.75 for quite some time when local competitors like DUCA, Meridian, Parama, have been at 1.5%.
My guess is that you're likely safe with this offer, but there is the annual fee. It's not much, but annoying. And you will have to pay for a bank draft to get your money out in the end. I think they don't really want people like us. They mainly want people who will do all their banking with them. Fair enough.

October 1, 2018
6:57 pm
thisusernameforlease
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If Luminus achieves their deposit goal I see no reason why they wouldn't reduce their base rate, which will ultimately reduce the promotional rate. I figure they're counting on the laws of inertia, ignorance and indifference to keep most of the money there.

The email blast that Luminus sent out about this really does suggest that the rate is 2.75% until Sep/19. It's really tacky how they crafted it.

Peter, at the very least I suggest re-labeling the promo. Right now (because of the thread title) it says "Luminus 2.75% for 12 month on new deposits." I think it should read "Luminus 1% bonus on top of current ISA rate on new deposits until September 19" or something like that.

I'm not trying to be pedantic -- it's just that I don't think Luminus deserves to be in the same comparison conversation as other FIs that are offering a guaranteed and fixed ISA rate as part of a promotion (like Tangerine does and Simplii used to do...maybe they will again).

October 1, 2018
7:56 pm
Loonie
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I think there are 4 reasons why Luminus won't reduce their base rate in the net year:
1. Rates are on the rise.
2. They have held their 1.75 rate for quite a long time already, even when rates were generally lower.
3. In the T&C quoted by canadian100 (#8 above), they strongly hint at retaining it: "The promotional rate of 2.75% will be offered to any new deposits until September 30, 2019; after that our normal rate of 1.75% will be applied."
4. It would be very unpopular, and i can't recall any other FI doing this even when they gave themselves a loophole through which to do it.

October 1, 2018
9:45 pm
Peter
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I understand the need to make clear that the underlying rate remains variable. I've updated the wording in the promo section to say "1.00% bonus rate (2.75% total at current 1.75% base rate) on new deposits..."

December 7, 2018
12:27 pm
MoneyMatters
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I reached out to Luminus to get a better picture and this is what I was told directly:

The bonus is not a floating rate. The full 2.75% is ongoing until September 2019. Rather, Luminus can stop the promotion at any time for those who have NOT YET opened the account, which would result in the member not being able to take advantage of the 2.75% rate.

I know this is an older post now, but I thought it might clear some things up sf-cool

December 7, 2018
1:29 pm
thisusernameforlease
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Thanks MoneyMatters -- FWIW though, my information is that the original plan was that while the 1% bonus was fixed, the underlying HISA rate was not.

So for example, when the promo launched the HISA rate was 1.75%, and so with the 1% bonus it was 2.75%.

However, again based on the information I was provided, originally there was no guarantee that the HISA rate would remain at 1.75% until Sep/19.

So for example, let's say in Feb/19 Luminous drops the HISA rate to 1.25% (see note below). The effective rate for people in promo would fall to 2.25%.

However, I believe based on feedback from members -- and also because I believe they over-promised in their marketing and realized undoing that it would be most costly than just taking the hit -- they decided to go with the guaranteed 2.75% for people who are enrolled in the promo, even if (and this is important) the underlying HISA rate drops from 1.75%.

Note: it's been mentioned on this board that Luminous would be unlikely to drop its HISA, and that point is well taken. However, if they were oversubscribed on this promo (or for any other reason) I could see them dropping it. Why not? They are not a HISA leader and, to my knowledge, have never tried to be.

December 7, 2018
1:41 pm
MoneyMatters
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