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Motive Financial - Watch Out
December 13, 2019
7:10 am
MapleOne
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So I logged into my Motive account this morning and it said 0.25% interest instead of 2.8% interest.

Turns out B2B bank deposited about 20 cents which brought me over the one million dollar limit and my interest rate was adjusted down. I thought it was just the portion over the limit of one million that would have a lower rate but it turns out I was wrong.

No big deal because I just spotted it and only lost two days interest but the funds are on the way over to B2B anyways and I hope they don't pull the same shenanigans.

Picture0010.png

December 13, 2019
7:58 am
fabafter50
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Wow! Good thing you noticed that! I don't think it would have occurred to me for 20 cents. I've opened accounts with both B2B and Laurentian and had no issues whatsoever. Had them both opened and money being transferred in within 3 days. Money went in immediately so the 3.30% would have started them. A lot of folks are having issues with them, but remarkably I haven't.sf-cool

December 13, 2019
8:26 am
dougjp
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MapleOne said
So I logged into my Motive account this morning and it said 0.25% interest instead of 2.8% interest.

Turns out B2B bank deposited about 20 cents which brought me over the one million dollar limit and my interest rate was adjusted down. I thought it was just the portion over the limit of one million that would have a lower rate but it turns out I was wrong.

No big deal because I just spotted it and only lost two days interest but the funds are on the way over to B2B anyways and I hope they don't pull the same shenanigans.

Picture0010.png  

Whatever showed on your web page is likely not accurate. Note their posted rate for savvy savings is 0.25% on the $ 1 million and over PORTION. I'd suggest you get a clarification of that in writing.

There are a few routine things about their web site that aren't accurate. The main obvious one is when you login and choose to register your computer, which isn't happening now because they decided the extra layer of a security question would happen all the time. But they never bothered to change the text to explain that. Their excuse is there is different enhanced security being introduced shortly and they are working on the web site (?!). Some excuse.

December 13, 2019
9:00 am
Bruford
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MapleOne said
Turns out B2B bank deposited about 20 cents which brought me over the one million dollar limit and my interest rate was adjusted down. I thought it was just the portion over the limit of one million that would have a lower rate but it turns out I was wrong. 

Wow, nice problem to have.sf-cool

December 13, 2019
9:30 am
Bill
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I agree with dougjp, their web site seems to indicate the lower rate does not apply to the first million. I'd double check that info.

Really, 20 cents put you over, so you had like $999,999.81 in your account?

December 13, 2019
12:03 pm
Nehpets
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Bill said
Really, 20 cents put you over, so you had like $999,999.81 in your account?  

Wouldn't any future interest deposit have pushed this account over the million dollar threshold ???

Stephen

December 13, 2019
1:17 pm
MapleOne
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I was going to keep the limit in the account and every month transfer the interest out. It was just this month I hit the limit exactly on the dot and my interest read 2.8%.

B2B transferred 20 cents into the account to verify a transfer and now my interest reads 0.25%

I figured the lower interest rate was just on the over amount but to me it looks like the entire rate dropped as soon as I went even 20 cents over the limit.

So I'm a bit worried about this but figured right now I would transfer it to b2b anyways so no big deal. For future though, I will make sure to not get so close to the limit so there is some room for interest.

December 13, 2019
1:53 pm
Doug
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It really depends on whether the tiered interest rate applies to that portion above a certain dollar value, or to the whole balance. In my experience, it's about 50/50 (a coin toss) in terms of the number of institutions applying it to a portion of the balance or to the whole balance.

It's best to get these sort of things clarified upfront and not rush into things. I never rush into opening an account; I'm waiting until the spring before I open an LBC Digital account so as to hopefully have them work any kinks out.

Motive Financial is one of the better FIs in terms of transparently disclosing, upfront, in the fine print, which "camp" they're in. sf-cool

Cheers,
Doug

December 13, 2019
3:59 pm
canadian.100
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Per Motive site:
Interest is calculated on the daily closing balance and paid monthly. Interest is calculated on the portion of the balance that sits within each tier. If you have more than one Motive Savvy Savings Account, where combined Motive Savings Account Balances exceed $1 million, the posted rate for $1,000,000.01 and over will apply.

Seems clear......no?

December 13, 2019
4:14 pm
Doug
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canadian.100 said
Per Motive site:
Interest is calculated on the daily closing balance and paid monthly. Interest is calculated on the portion of the balance that sits within each tier. If you have more than one Motive Savvy Savings Account, where combined Motive Savings Account Balances exceed $1 million, the posted rate for $1,000,000.01 and over will apply.

Seems clear......no?  

Yeah, I read that as for the Motive Savings and Chequing accounts, the interest is calculated at the rate in a given tier. For the Savvy Savings, or where one has a Savvy Savings and a Savings account exceeding $1 million, then the rate at $1 million applies to the full balance, as has apparently happened.

Cheers,
Doug

December 13, 2019
4:40 pm
dougjp
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Completely the opposite impression, taken off their "Rates" page;

Motive Savvy Savings Account (Rates effective 2018-11-01) Rates
$0 - $1,000,000 2.80%
$1,000,000.01 and over 0.25%

Looks plain to me and it confounds me how that looks like the entire rate dropped on all of it?

However taking any text off that site as gospel, is short sighted to me (ref. Post 3).

All I know is, if I had $ 1 million there, I wouldn't be guessing about the facts and would be drilling down to get them, in writing. Then again, if I happened to have $ 20 million spread all over, I might be blase and not really care.

December 14, 2019
6:11 am
MapleOne
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Seems there are a number of descriptions, depending how you interpret it.

All I can say is now that I moved the funds to B2B and left 1k in the account the interest rate says 2.8% again.

I will use this account as my overflow account as I go over the limits on my other accounts but I am going to be extremely careful not to go over the limit on this one again.

Until I get a crystal clear Yes or No I am going to take no further chances on going over the limit with Motive.

December 14, 2019
6:27 am
Bill
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MapleOne, I've dealt with Motive for a while now and have been very pleased with their phone folks, I'd guess a phone voice conversation (with someone calling with over $1M on deposit) would be a priority for Motive to get right.

You must have a lot of confidence in banks, to put $1M with Motive and now with system-trouble plagued B2B/Laurentian.

December 14, 2019
6:46 am
MapleOne
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Bill said
MapleOne, I've dealt with Motive for a while now and have been very pleased with their phone folks, I'd guess a phone voice conversation (with someone calling with over $1M on deposit) would be a priority for Motive to get right.

You must have a lot of confidence in banks, to put $1M with Motive and now with system-trouble plagued B2B/Laurentian.  

No different than the stock market, when you get to a certain level there are always risks. One has to store money someplace and as long as one only puts what one can afford to lose with any institution then I guess it's not the end of the world.

I generally would not exceed the limit because that is the most I feel comfortable leaving at any one bank, I was just surprised to see the interest rate tumble with a twenty cent overage.

Right now I will assume what it said on my account is correct, it clearly tumbled to 0.25% as soon as the .20 cents went in. When removed it went back up to 2.8%

You would figure this would be a priority for motive because they can lose (and have lost) a number of high depositors by listing a false low rate, if that was the case. I am old school, I go by what it says on the account and at 0.25% I was taking no chances. I took the word from somebody at CIBC once and was burned big time. In the end they simply said..... what rate did you see listed online? So I have very little confidence in anything I am told by someone on the phone. One month interest is almost $2,400 @ 2.8% and I'm not risking that by taking someone's word again.

Once burned, twice shy is my motto.

December 14, 2019
6:58 am
dougjp
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MapleOne said

No different than the stock market, when you get to a certain level there are always risks. One has to store money someplace and as long as one only puts what one can afford to lose with any institution then I guess it's not the end of the world.

I generally would not exceed the limit because that is the most I feel comfortable leaving at any one bank, I was just surprised to see the interest rate tumble with a twenty cent overage.

Right now I will assume what it said on my account is correct, it clearly tumbled to 0.25% as soon as the .20 cents went in. When removed it went back up to 2.8%

You would figure this would be a priority for motive because they can lose (and have lost) a number of high depositors by listing a false low rate, if that was the case. I am old school, I go by what it says on the account and at 0.25% I was taking no chances. I took the word from somebody at CIBC once and was burned big time. In the end they simply said..... what rate did you see listed online? So I have very little confidence in anything I am told by someone on the phone. One month interest is almost $2,400 @ 2.8% and I'm not risking that by taking someone's word again.

Once burned, twice shy is my motto.  

" it clearly tumbled to 0.25% as soon as the .20 cents went in " No it didn't. Only on the excess over $ 1 mil. Go get it in writing. I'm tired of repeating this, outta here 🙁

December 14, 2019
7:24 am
MapleOne
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Did I ask you to repeat it?
I was pretty sure I was addressing someone else sf-wink

Besides, I'm not taking your word for it or anyone else's, period.
Been burned too many times and I will consider what it ACTUALLY SAYS on my account when I log in as correct.

December 14, 2019
7:42 am
dougjp
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MapleOne said
Did I ask you to repeat it?
I was pretty sure I was addressing someone else sf-wink

Besides, I'm not taking your word for it or anyone else's, period.
Been burned too many times and I will consider what it ACTUALLY SAYS on my account when I log in as correct.  

Doesn't matter to me. You post and we are commenting to try and help.

However this repeated insistence, before coming back to us with what Motive wrote to you to clarify, against what their posted rates said, without reporting a calculation that proved anything amiss etc., seems unreal to say the least. So I doubt the whole story. perhaps its a troll for the other bank, I don't know?

December 14, 2019
7:51 am
dougjp
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Just a thought, have you considered that it could be as simple as their account display system to you online is not able to show more than one rate that applies to an over $ 1 mil account? And has nothing to do with the calculation?

December 14, 2019
7:58 am
MapleOne
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dougjp said

perhaps its a troll for the other bank, I don't know?  

So now you are calling another member a troll?

Hmm.... maybe just do as you said and.... be outta here

Because at this point I could say the same about you. You seem to forget this is my topic so if you don't have something positive to contribute please open your own topic and stop trolling mine.

December 14, 2019
8:42 am
Doug
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MapleOne, I'm a bit troubled by what I am reading. When you say it clearly tumbled to 0.25%, perhaps what you're seeing is the top-line rate adjusting? It's quite possible that the amount earning below $1 million was still earning the 2.8%, but the way Motive Financial displays the rate, they display only the rate of the highest threshold.

It would've been better to wait a month instead of rushing to post your interest rate crisis here, so you could show the balance you held for the month, what you were paid in interest, and your daily interest calculation. 🙂

Peter or NorthernRaven, I would suggest a slight renaming of this thread to remove the potentially libelous "watch out" scare mongering. Based on what's been established in the discussion, there's no indication of anything close to such a strongly worded "buyer beware" statement. Rather, it would be better to retitle this thread something like, "Motive Financial - discussion on interest rate calculation on balances over $1 mm." sf-cool

Cheers,
Doug

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