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Manulife TFSA Promo
December 28, 2019
1:18 am
speedwagen
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I accidentally came across a new TFSA 3% promo that apparently started Dec1 & runs to Apr30.

The T&C just talk about new deposits without specifying as of when, but don't make any mention whether or not they differentiate between registered & non-registered funds the way Tang separates the 2 entirely.

Also, I couldn't find the sign-up page, so if anyone finds it, pls post it here.

December 28, 2019
8:24 am
Norman1
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According to the High-interest Advantage Account rate table on Manulife Bank's rates page, the extra 1.80% promotional interest, to bump the rate to 3%, is only for their TFSA and RSP Advantage Account.

The offer terms and conditions says the same:

Manulife Bank’s Registered Advantage Account and Tax-Free Advantage Account (“Eligible Accounts”) Interest Offer of 3.00% (the “Offer”) is available to Registered Advantage Account Owners and Tax-Free Advantage Account Holders (“Eligible Client(s)”) who open a new Eligible Account or deposit new funds into an existing Eligible Account between December 1, 2019 and March 13, 2020 (the “Offer Period”).

No special signup page is mentioned. I think one just opens the RSP or TFSA Advantage Account through one of their advisors. That's what the "Open a TFSA" button on Tax-Free Advantage Account and the "Open an account" button on Registered Advantage Account suggest.

December 28, 2019
9:41 am
Canadianbull
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Useless offer imo.

sf-confused

December 30, 2019
3:17 pm
Ed
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Best TFSA offer so far. In fact, it is the only one that is not targeted or a GIC. Wonder why it is not included in the Promo tab?
Phoned today and the agent said that new money refers only to deposits made into the registered account.

December 30, 2019
5:48 pm
Loonie
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You could actually lose capital on this one! It depends on how hefty their transfer fee is and where you move it to afterwards.

If you deposit 6K on Jan 2,leave it there until April 30, then transfer out, you will have earned $59. Depending on how long they dilly dally about sending your transfer through, you could lose another 2 to 4 weeks' interest at your new rate.

I don't know what their transfer fee is. If it's $50, you will more or less break even with no loss of capital if the receiving FI doesn't reimburse (e.g. Oaken).
If the transfer fee is $100, you could actually end up in the hole!

Why not just go to Oaken in the first place?

December 30, 2019
8:13 pm
Bud
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is transferring a tfsa a pain like the rrsp?

December 30, 2019
8:42 pm
Canadianbull
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Loonie said
You could actually lose capital on this one! It depends on how hefty their transfer fee is and where you move it to afterwards.

If you deposit 6K on Jan 2,leave it there until April 30, then transfer out, you will have earned $59. Depending on how long they dilly dally about sending your transfer through, you could lose another 2 to 4 weeks' interest at your new rate.

I don't know what their transfer fee is. If it's $50, you will more or less break even with no loss of capital if the receiving FI doesn't reimburse (e.g. Oaken).
If the transfer fee is $100, you could actually end up in the hole!

Why not just go to Oaken in the first place?  

On the nose!

December 30, 2019
8:45 pm
Loonie
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Bud said
is transferring a tfsa a pain like the rrsp?  

Yes inasmuch as CRA wants to track what you're doing and there must be a direct transfer. Fee structure is about the same, and delays are about the same.

December 31, 2019
10:43 am
Ed
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Loonie said
You could actually lose capital on this one! It depends on how hefty their transfer fee is and where you move it to afterwards.

If you deposit 6K on Jan 2,leave it there until April 30, then transfer out, you will have earned $59. Depending on how long they dilly dally about sending your transfer through, you could lose another 2 to 4 weeks' interest at your new rate.

I don't know what their transfer fee is. If it's $50, you will more or less break even with no loss of capital if the receiving FI doesn't reimburse (e.g. Oaken).
If the transfer fee is $100, you could actually end up in the hole!

Why not just go to Oaken in the first place?  

Oaken does not have a TFSA Account. Also, I don’t intend on losing anything on this transfer since I withdrew my entire amount today and will redeposit it on Thursday when banks start up again. No exit fee and no waiting. I can always transfer out when the promo ends and ask the receiving bank to backdate the deposit to when the money left the relinquishing bank. Nothing lost. If you have a better idea, then I’d certainly like to hear it.

December 31, 2019
11:57 am
Peter
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On Twitter, Manulife Bank says that they currently don't charge transfer out fees on registered accounts:

December 31, 2019
7:01 pm
Ed
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Peter said
On Twitter, Manulife Bank says that they currently don't charge transfer out fees on registered accounts:

  

However, since they don’t charge an exit fee, the trade-off is that they do not reimburse one, either.

December 31, 2019
8:39 pm
Loonie
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Thanks for the research on fees.
The fact that they specify that they don't currently charge a fee strongly suggests to me that they will in the future, and indeed that it is already in their minds to do so. It could come any time.

It's true that Oaken doesn't offer a TFSA savings account. They do offer TFSA GICs, and that's where I will be putting 2020's contribution.

If you really need it as a savings account, then this might be as good an offer as any, but there is still the risk of a transfer fee being place when you want to take it out, or, worse, a withdrawal fee. If it were me, I would wait for a couple of weeks at least and see what else gets rolled out, but I would not deal with ManuLife due to bad history. But I hope it works out for those who decide to take the risk.

Another way they can potentially mess you up is by delaying transfers. A good friend of mine initiated an RSP transfer from TDDI on Dec 3. The money was ready to go, in cash. Numerous lengthy phone calls and confusing messages later, they claim that, under pressure from him, they have now "expedited" the process and are sending the cheque. If this were a small bank or CU, everyone would say they were incompetent, had ancient technology, and were perhaps sketchy, and stay away from them. The most recent phone conversation provided the info that this 'normally' takes 30 business days, which, at this time of year, with 3 stat holidays, is almost 7 weeks! Oaken did an RIF transfer for me this year in 3 days, start to finish, no charge. But for its "expedited" service, TDDI charges $135. Add that to the interest they scoop up during the almost-7 weeks delay, and they're doing very well - for themselves. And if my friend had not been persistent with phone calls, he'd be waiting even longer.

January 3, 2020
6:23 pm
HISAhopper
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Ed said

Oaken does not have a TFSA Account. ........... I can always transfer out when the promo ends and ask the receiving bank to backdate the deposit to when the money left the relinquishing bank.....  

Is it something the bank would be ok to do?

January 3, 2020
7:58 pm
Ed
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HISAhopper said

Is it something the bank would be ok to do?  

It’s a hard sell, but doable. Meridian did it for me last year when I transferred from Alterna. Also, when I transferred from Tangerine to Motus. Motus even backdated the $45 exit fee reimbursement when I phoned them a couple of weeks later to remind them that it wasn’t showing on my statement. They claimed they didn’t know how much Tangerine charges and asked me to email them a copy of my statement showing the debit, which I did. In all, my funds have never been in limbo between banks for more than 5 business days - the maximum number of days for a letter to be delivered from one coast to the other.

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