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Is Motive paying the correct interest?
January 7, 2023
3:17 pm
Warwick111
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I am new to this very helpful forum and I wish everyone a Happy new year! I initiated a push transaction from Tang to my Motive chequing account. The money arrived at Motive chequing on Dec. 22 by 6pm EST, and then I moved the money from chequing to Savvy savings. The transaction was dated Dec.22. On Dec. 31, I received interest for 9 days. Should interest be paid for 10 days since my money was in the Savvy savings account for 10 days (Dec. 22 to Dec.31 inclusive)? I know most Banks business cut off time is 8 pm EST but I cannot find the cut off time for Motive. If I missed their cut off time, the transaction should be dated the next business day, Dec.23 instead of Dec.22.

January 7, 2023
5:07 pm
hwyc
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Have you read this thread already?

January 7, 2023
6:45 pm
Warwick111
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Thanks for pointing me to this thread. That explained it.

I always thought interest is calculated from the 1st of the month to the last day of the month and paid on the last day of the month.

I checked the info on 2 other FIs that I deal with, and that seemed to be the norm.

Tang:
Interest is calculated daily on the total daily closing balance and paid monthly on our Savings and Chequing Accounts.

Hubert:
Interest for our Happy Savings accounts is calculated daily and paid monthly.

Motive seemed to be the exception . Is there any other FI that does not use a calendar month for interest calculation?

January 7, 2023
8:13 pm
GR
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"Is there any other FI that does not use a calendar month for interest calculation?"

Simplii Financial - last day of the previous month to second to last day of the following month.

January 8, 2023
2:48 am
HermanH
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Warwick111 said
Is there any other FI that does not use a calendar month for interest calculation?  

I think that National Bank and HSBC base their calculation periods on the birth date of the account holder (or some other mid-month date).

January 8, 2023
6:02 am
savemoresaveoften
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HermanH said
I think that National Bank and HSBC base their calculation periods on the birth date of the account holder (or some other mid-month date).  

I was told HSBC uses the account open date to determine monthly cycle.

January 8, 2023
10:50 am
HermanH
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I think that the billing/statement cycle is based on the date of opening, but the interest is calculated and paid according to the birthdate. My birthdate is mid-month and I am paid interest at that time, while my statements appear on the third week, when I opened the account. The dates are distinct and separated by a week.

January 8, 2023
1:57 pm
savemoresaveoften
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HermanH said
I think that the billing/statement cycle is based on the date of opening, but the interest is calculated and paid according to the birthdate. My birthdate is mid-month and I am paid interest at that time, while my statements appear on the third week, when I opened the account. The dates are distinct and separated by a week.  

I always see interest credited around 4th or so, while my birthday is at least a week away.
Either way, HSBC’s way is unique and overly complicated. The only reason I can think of them doing it that way is a mechanism to ‘even out’ the work load over the month ?

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