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1% transfer in promo
January 15, 2019
11:22 pm
martik777
Lower Mainland, BC
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meridian has a 1% transfer in bonus max $750 (75,000 deposit)

https://www.meridiancu.ca/Offers/RRSP2019.aspx?promo_name=cashbonus&promo_id=1&promo_creative=v1&promo_position=home1

This was not listed on the promos page

January 16, 2019
7:53 am
semi-retired
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My wife & I are opening accounts there tomorrow to take advantage of this promo.With the 1% bonus it's like getting 4.25 % for 18 months.Even with the transfer out fee when it ends,(if need be),it is still a great deal.They just opened a new branch 20 minutes from home.

January 16, 2019
10:29 am
Loonie
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TFSAs and RSPs only. Minimum 10K.

January 16, 2019
11:17 am
semi-retired
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Loonie said
TFSAs and RSPs only. Minimum 10K.  

TFSA's from Hubert will be transferred over only.Will only use Meridian for high paying promo's.Thanks for keeping a watch over your flock Loonie.I always appreciate your comments.

January 16, 2019
2:30 pm
JustMe2016
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semi-retired said
My wife & I are opening accounts there tomorrow to take advantage of this promo.With the 1% bonus it's like getting 4.25 % for 18 months.Even with the transfer out fee when it ends,(if need be),it is still a great deal.They just opened a new branch 20 minutes from home.  

Over 18 months that's 3.91%.

January 16, 2019
3:35 pm
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JustMe2016 said

Over 18 months that's 3.91%.  

Is that with the 1% bonus added to the original deposit?According to Meridian agent I spoke with,he said the 1% is added to deposit. The interest is compounded annually.I will update tomorrow after opening the GIC.How did you get the 3.91% figure?Thanks in advance.

January 16, 2019
4:35 pm
martik777
Lower Mainland, BC
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Lets say I transfer in 75,000:

For the 1st year:

Adding in the 750 bonus up front, 3.25% of 75,750 = 78,211.88

so the effective interest is 3211.88, which is 4.28% of the original 75,000
============================
For 18 months it goes down to 3.94%

75750 x (1.0325^1.5) = 79472.65

18 month compounded interest is 4472.65 which is 5.96%

then the annual effective rate would be 1.0596^ (1/1.5)= 3.94%

January 16, 2019
7:53 pm
JustMe2016
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semi-retired said

Is that with the 1% bonus added to the original deposit?According to Meridian agent I spoke with,he said the 1% is added to deposit. The interest is compounded annually.I will update tomorrow after opening the GIC.How did you get the 3.91% figure?Thanks in advance.  

Say you have $100,000 at 3.25% for 18 months. This will give you $3,250 for the first year + $1625 (1/2 * $3,250) for the additional 6 months. Or a total of $4,875.

Add the 1% bonus or $1,000 and you get a total of $5,875 for 18 months.

$5,875/18 months and then multiply by 12 months and you get a return of $3,916.67 for $100,000 and therefore 3.91% per year.

Keep in mind this is based using months and not days. So there will be a very minor difference.

Also, AFAIK, the 1% bonus is not added to your TFSA or RRSP account but deposited in a saving account.

January 16, 2019
8:14 pm
martik777
Lower Mainland, BC
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JustMe2016:

Some clarifications (I called meridian to confirm this):

The offer maximum is 750 or 75k deposit. you can transfer more but will only get 750

The interest is compounded annually so you would get interest on 103250 in the last 6 mos.

The bonus is deposited to you rsp up front so interest is calculated on that as well.

The general compound interest formula is:

PV x (1 + if)^n so in this case for 10000 with a 100 bonus up front:

10100 x (1+.0325)^1.5= 10596 =5.964%

Working back to an annual rate: 1.0596 ^ (1/1.5) = 1.0394 or 3.94%

January 16, 2019
8:17 pm
Loonie
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Bear in mind that the most you can get on the bonus per member is $750.

T&C show that the 1% offer also extends to RIFs.

"12. The 1.0% Cash Bonus Offer... is payable on the date funds are
received on New Assets that qualify (Qualifying Investments).

13. The 1.0% Cash Bonus Offer will be deposited into the same Qualifying Account as the New Assets..."

This means the money will go into your registered plan, and it will go in at the beginning of your GIC, so it will become part of the principal. I believe, from past experience, that they compute this as equivalent to interest, so it's not a "contribution" per CRA.

T&C for the 1% offer
https://www.meridiancu.ca/Meridian/media/images/PDFs/2019-1-Percent-Cash-Bonus-Offer-Terms-and-Conditions-On-Book-Nov-16-20.pdf

I couldn't find any specifics, but it is likely that the interest for the final six months is compounded onto the year's interet. I say this because that's what I got on a previous 18 month RSP GIC from Meridian.

January 16, 2019
8:46 pm
Norman1
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Loonie said

T&C for the 1% offer

I couldn't find any specifics, but it is likely that the interest for the final six months is compounded onto the year's interet. I say this because that's what I got on a previous 18 month RSP GIC from Meridian.

That doesn't sound quite right. Interest for the final six months hasn't accrued yet at the 12 month mark. So, it can't be added or compounded after the first 12 months.

I didn't find any specifics in the terms and conditions either. My first guess is that interest is compounded/added at 12 months and on maturity at 18 months.

January 16, 2019
9:14 pm
Loonie
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Norman1 said

Loonie said

T&C for the 1% offer

I couldn't find any specifics, but it is likely that the interest for the final six months is compounded onto the year's interet. I say this because that's what I got on a previous 18 month RSP GIC from Meridian.

That doesn't sound quite right. Interest for the final six months hasn't accrued yet at the 12 month mark. So, it can't be added or compounded after the first 12 months.

I didn't find any specifics in the terms and conditions either. My first guess is that interest is compounded/added at 12 months and on maturity at 18 months.  

I think I wasn't very clear, Norman. What I meant was that interest will be applied after one year; then that interest becomes part of the principal upon which the subsequent six months' interest is calculated. In other words, annual compounding. The 18 month thing makes it more difficult to describe.
I hope that's a little clearer.

Sometimes, with partial year "specials", the rate quoted is for the entire term, so I just wanted to raise the question. I think it won't be an issue with Meridian, based on previous experience, but doesn't hurt to ask.

January 17, 2019
5:36 pm
Norman1
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Loonie said

I think I wasn't very clear, Norman. What I meant was that interest will be applied after one year; then that interest becomes part of the principal upon which the subsequent six months' interest is calculated. In other words, annual compounding. The 18 month thing makes it more difficult to describe.

I hope that's a little clearer.

It is. I would call that "interest compounded annually and at maturity".

January 18, 2019
10:19 pm
Canadianbull
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Norman1 said

Loonie said

I think I wasn't very clear, Norman. What I meant was that interest will be applied after one year; then that interest becomes part of the principal upon which the subsequent six months' interest is calculated. In other words, annual compounding. The 18 month thing makes it more difficult to describe.

I hope that's a little clearer.

It is. I would call that "interest compounded annually and at maturity".  

Just to be clear this only apply on those who are transferring their tfsa account right? Or does it apply on new tfsa account as well?

January 18, 2019
11:05 pm
Norman1
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Canadianbull said

Just to be clear this only apply on those who are transferring their tfsa account right? Or does it apply on new tfsa account as well?

Paragraph #3 seems to require a transfer. But, the receiving Meridian account can be new or existing:

Terms and Conditions for 1.0% Cash Bonus Offer

3. Registered cash, investments, or a combination thereof (“New Assets”) must be transferred into a new or existing registered account at Meridian (“Qualifying Accounts”) from a financial institution outside of Meridian Credit Union, Credential Asset Management Inc., Credential Securities, and Qtrade Investor. To qualify as New Assets, the assets must not have been transferred out of a Qualifying Account at any time within the previous twelve (12) months.

January 18, 2019
11:49 pm
Loonie
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You can always ask if they might accept a new deposit for the offer. I don't know if a manager might allow that or not, but I think the 10K minimum will stick. This is probably more difficult to do if you are not dealing with a local branch. It would definitely require a manager's override.
So, in my opinion, you would have to have at least 2 years' of contribution room or from previous years' withdrawals. The more you are bringing in, the more negotiating power you might have. (Personally, I will not be asking for any exceptions.)

January 19, 2019
9:08 am
Norman1
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Wording on the offer page that martik777 mentioned suggests that is for direct transfers only:

Transfer your RRSP or TFSA with a minimum of $10,000 to Meridian before March 1, 2019 and
we’ll give you a 1% cash bonus up to $7501. That's free money!

1Terms and Conditions apply.

Rather odd to intentionally exclude people who, instead of doing a direct transfer, cashed out their $30,000 TFSA in the last week of December and can now recontribute the $30,000 back into a new TFSA after January 1.

January 19, 2019
7:03 pm
Ed
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If you cashed out your TFSA last year, put it back into any TFSA and you're eligible for the 1% Cash Bonus.

January 19, 2019
9:38 pm
Loonie
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Ed said
If you cashed out your TFSA last year, put it back into any TFSA and you're eligible for the 1% Cash Bonus.  

That's why I think it's worth asking for an exception. It makes no sense to do a two-step process when you can do one, and it's easier for all involved. You won't be very popular with a FI if you use it simply to pass your TFSA in and out again. Some will charge you an early closing fee, as they should.
I would explain to Meridian manager that this is what you must do to meet their criteria and ask if they wouldn't prefer to avoid it and get your deposit immediately instead. After all, you might change your mind or forget about it if you deposit it at Other FI first. If it is technically possible, they might be willing to accommodate you.

January 20, 2019
6:12 am
JustMe2016
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8 days ago I called a Meridian branch located near me and I asked them if I were to open a brand new TFSA account (2 actually 😉 ) and deposited $63,500 would I get the 1% bonus? After being put on hold I was told that yes they would 'bend' the rule and give it to me.

Actually to me it is not bending the rule but being logical as the purpose of the campaign is to attract new money. That I do a direct TFSA transfer, or write a cheque from another FI it is new money. But enough about the semantics.

I was also told that the 1% would not be added to the TFSA account but would be deposited in a regular saving account. I believe they call it 'Advantage' account.

Yesterday the accounts were open and I was surprised to being told that the 1% would actually be added to the $63,500 instead of being deposited in a separate account as I was told 8 days prior. And it would be added in a few days.

Therefore this change the calculation.

So if you invest into a 18 months GIC at 3.25% and get the 1% bonus added a few days later and with the interest compounded annually it will give you an average of 3.98% over the 18 months.

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