[EXPIRED] 3.25% (for everybody) or 3.35% (for group benefits) for 6 months in new Advantage Accounts | Page 12 | Manulife Bank | Discussion forum

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[EXPIRED] 3.25% (for everybody) or 3.35% (for group benefits) for 6 months in new Advantage Accounts
July 25, 2019
5:32 pm
MapleOne
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smayer97 said
Interesting bit of news:
now into second payment of interest and have discovered that Manulife does NOT pay interest on interest earned for the promotional part of the interest, in other words, no compounding. Again, this seems to only apply to the promotional part of the interest rate.

I was just in touch with them today and will verify it. In fact she told me they do not pay interest on any of the interest. Not sure if she was new or what.

Son of a gun I just maxed this promo, and this nickel and diming does not make me feel good.

July 25, 2019
5:35 pm
MapleOne
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I just thought of something....

I'm simply going to move my interest out each month to my motive account. I have room left in that account to add more so the interest will be well taken care of there.

--------------------------

Still seems like a lot of work though considering the measly 100k limit on the manulife account promo.

July 25, 2019
6:02 pm
Doug
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MapleOne said

smayer97 said
Interesting bit of news:
now into second payment of interest and have discovered that Manulife does NOT pay interest on interest earned for the promotional part of the interest, in other words, no compounding. Again, this seems to only apply to the promotional part of the interest rate.

I was just in touch with them today and will verify it. In fact she told me they do not pay interest on any of the interest. Not sure if she was new or what.

Son of a gun I just maxed this promo, and this nickel and diming does not make me feel good.  

What she probably meant, MapleOne, is that promotional interest (that portion paid by the promotional rate) is not paid on previous regular or promotional interest amounts paid. This is typical of promos, like Tangerine, whereby "interest" is not considered "net new money" for the purposes of increasing one's balance. This likely explains why sometimes when I'd reconcile my Tangerine bonus interest, I was out by a few pennies. 😉

It's a subtle little piece in the T&C people (including me!) often forget about, but which has always been there.

To each his (or her) own, you can certainly transfer your interest out to another FI, but in most cases, the daily interest for a given month is not significant. That said, in your case, at 1.8% (the difference between 1.50% and 3.30%), that does work out to be $730 or so on a 30-day month. However, in terms of the interest paid on that promotional interest, that works out to be only a loss of $1.08 (at 1.8% for 30 days) in terms of promotional interest you wouldn't be paid.

In short, you'll definitely earn promotional interest on net new money in the account, but the "interest" and "promotional interest" themselves aren't considered net new money so would only earn 1.50%. You have to decide whether it's worthy of your time to get the extra $13.15 in a 365 day year (less than that since promo isn't for 365 days) that you wouldn't earn on your interest in terms of promo interest.

Cheers,
Doug

July 25, 2019
6:06 pm
Doug
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smayer97 said
Interesting bit of news:
now into second payment of interest and have discovered that Manulife does NOT pay interest on interest earned for the promotional part of the interest, in other words, no compounding. Again, this seems to only apply to the promotional part of the interest rate.

I have been in communication back and forth with them for clarification because as I read the wording, this feels like a bait-and-switch, because the wording in the T&C's does not make this clear at all. In fact the language as I read it uses standard terminology that suggests the standard interpretation, which means earning interest on interest deposits (Manulife claims that promotional interest deposits are not "eligible deposits" but nowhere do they define this in this way).

Has anyone else realize this? Any thoughts or insights on this? If you disagree with Manulife, I encourage you to join in and raise a voice over this issue with them.  

@smayer97 This actually, as far as I'm aware, is typical of even Tangerine net new money promos in that "interest" and its "bonus interest" cousin are not considered "new money" for the purposes of earning bonus interest. In most cases, you'd still earn the FI's regular interest (1.15% at Tangerine; 1.20-1.50% at Manulife Bank, depending if you opened the Advantage Account or their All-In Banking Package's Savings account, which is lower) on your interest+bonus interest.

Nevertheless, it's a sneaky little bit of fine print, eh? 😉

Hope this helps you,
Doug

July 25, 2019
6:54 pm
smayer97
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Doug said

@smayer97 This actually, as far as I'm aware, is typical of even Tangerine net new money promos in that "interest" and its "bonus interest" cousin are not considered "new money" for the purposes of earning bonus interest. In most cases, you'd still earn the FI's regular interest (1.15% at Tangerine; 1.20-1.50% at Manulife Bank, depending if you opened the Advantage Account or their All-In Banking Package's Savings account, which is lower) on your interest+bonus interest.

Nevertheless, it's a sneaky little bit of fine print, eh? 😉

Hope this helps you,
Doug  

I have never seen this before that interest is not paid on the interest deposit, especially being limited to the promo part only. You have seen this before?

Not only that, this is NOT fine print, because there simply is NO fine print that spells this out. It is just vague language that is left open to interpretation because terms are not defined. THAT is sneaky!

July 25, 2019
8:21 pm
Norman1
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smayer97 said

I have never seen this before that interest is not paid on the interest deposit, especially being limited to the promo part only. You have seen this before?

Yes, I've seen something like that in one of Tangerine Bank's promotions.

No bonus interest paid on posted regular interest or posted bonus interest. Attempts to withdraw the bonus or regular interest would actually withdraw deposits eligible for bonus interest and not withdraw the interest.

July 26, 2019
6:17 am
Canadianbull
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Manulife regular interest rate dropped from 1.50% to 1.25%.

Does it affect anyone else on this board?

July 26, 2019
6:33 am
Nehpets
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Canadianbull said
Manulife regular interest rate dropped from 1.50% to 1.25%.
Does it affect anyone else on this board?  

Thanks for that heads up on the decrease, CB. It will affect how and where I park funds during the next few months of ongoing HISA promos....they are now necka and neck to DUCA's 3% until January 2019

Stephen

July 26, 2019
8:12 am
Canadianbull
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With promo I am getting 3.10% with manulife which is the top rate for savings account in my knowledge at this time. I will take my funds out if they decided to drop more before Jan 2020.

July 26, 2019
9:26 am
MapleOne
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My 100k went into the account at midnight last night...

1. I find out no interest on interest
2. The rate goes down .25% the second my funds hit my account.

This morning it sill said...

Interest rate 1.500%
Promotional rate 1.850%
Promotion end date January 20, 2020

A few hours later

Interest rate 1.250%
Promotional rate 1.850%
Promotion end date January 20, 2020

JUst not worth my time and effort anymore for 6 months and 100k and then tracking one more T4 slip at the end of the year.

Have initiated transfer out to Motive who has a million limit at 2.8% and their rate has held nice and steady. I have a good chunk there already and it looks like they offer more stability in rates.

I would have been really pissed had I done the 500k at mutual when it was allowed and then literally days after the rate drops.

Think about it, they dropped the limit, then the rate. False advertising all the way, as soon as all the 500k people moved in and they had enough deposits they lower the limit to 100k and then they take away the interest rate.

I figured there are more games coming with this company and I'm hoping with a days of interest it will be below T4 reporting levels. I'm for sure not going back to Mutual and that was my instinct in the first place. Next time I learn to follow my instincts.

Blaaaaaaah!

July 26, 2019
12:50 pm
Doug
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With confirmed reports in this and other threads of Manulife Bank having reduced the inclusive regular+promotional interest rate for this promotion, I'm wondering if maybe Peter might amend post # 1 (https://www.highinterestsavings.ca/forum/manulife-bank/3-35-for-6-months-new-acounts-promotion-advantage-account/#p40079) in this thread to update the two promotional rates from 3.25% and 3.35% to 3.00% and 3.10%, respectively, in both the (a) thread title and (b) applicable areas of the post # 1's body? Similarly, might be worth also updating the link title on the "promos" page. sf-cool

We've never really had to have to update promotional interest rates retroactively, but perhaps somewhat disturbingly, this might be a new trend?

Cheers,
Doug

July 26, 2019
4:09 pm
smayer97
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Canadianbull said
Manulife regular interest rate dropped from 1.50% to 1.25%.

Does it affect anyone else on this board?  

Yes, confirming that my base rate has decreased by 0.25% also.

July 26, 2019
4:22 pm
Loonie
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Dropping the base rate midstream is not unprecedented. Meridian did this as recently as last winter, and I think Tangerine also has done so but can't remember for sure.
T&C on the ManuLife offer do say that interest rate is subject o change, as I noted above, post #2.
The good news is that someone spotted the change right away so that people can act accordingly. ManuLife is undoubtedly counting on people not noticing or not doing the calculations when they get their statement.

July 26, 2019
5:01 pm
rk
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I believe that Doug is right when saying that 3.35% (or 3.25%) old references (e.g. in the title) can be misleading for potential new customers. In fact it happened to me when reading older posts about other FIs, a while ago. Maybe instead of replacing them, the obsolete values could be crossed out and the new (accurate) numbers could show next to them. Just a thought.

July 26, 2019
5:14 pm
Loonie
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Good idea, rk.

July 26, 2019
6:54 pm
smayer97
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If strikethrough not allowed, maybe title could say 3.0% & 3.1% (was 3.25 & 3.35%)...

July 26, 2019
7:42 pm
Loonie
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FWIW, I would leave in the old rates.
Eliminating them makes it look like a brand new offer and would therefore be confusing. I would find it valuable to easily see that the rate has been changed, in the title.
I would say "formerly' instead of "was" because I think it makes the progression clearer.
I do think the title needs updating, one way or another.

July 26, 2019
7:50 pm
MapleOne
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I used to run a big forum myself and in this case I would add the word UPDATED in the title, then I would make a link to the new topic and close this one. Basically if the offer has changed then it is a new offer and the topic is done. The new topic will take over with the proper title.

Editing titles can play havoc with seo and confuse members that have already subscribed to the topic.

I ran a massive forum and some of these procedures are fairly common in larger forums.

Just an opinion from a former forum admin.

July 26, 2019
8:03 pm
Loonie
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"Updated" can be a useful method, but in this case I think it poses more problems.

1. It really is the same offer, but the terms have changed, so people looking to know about his offer will still look here.
2. Correct me if I'm wrong, but the original offer does not seem to have been clearly updated on ManuLife's website, so that would be confusing to refer to it.
3. I think the thread should remain unlocked for people who wish to continue to learn about and discuss the original offer. A new thread would create two different threads commenting on the same thing if you also had a new updated one.

July 26, 2019
8:49 pm
Norman1
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Loonie said


1. It really is the same offer, but the terms have changed, so people looking to know about his offer will still look here.
2. Correct me if I'm wrong, but the original offer does not seem to have been clearly updated on ManuLife's website, so that would be confusing to refer to it.

The terms of the June 18 offer mention that the offer is regular + 1.85% and not a fixed 3.35%:

Manulife Bank’s 3.35% Personal Advantage Account Interest Offer (the “Offer”) is available to Manulife Bank Advantage Account clients (“Eligible Account Owner(s)”) who open a new personal non-registered Canadian-dollar Advantage Account (“Eligible Account”) between June 18, 2019 and July 15, 2019 (the “Offer Period”).

Manulife Bank’s 3.35% Personal Advantage Account Interest Offer, which is currently 3.35% (“Promotional Interest”) is made up of the regular posted variable annual interest rate of 1.50% (“Regular Rate”) and the variable annual promotional rate of 1.85% (“Promotional Rate”). Any change to the Regular Rate will result in a corresponding change to the Promotional Interest. For example, if the Regular Rate of 1.50% were to decrease to 1.40% the Promotional Interest would decrease to 3.25%.

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