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Motive Financial - Watch Out
December 14, 2019
9:29 am
MapleOne
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Watch out is not libelous, it means just that... watch out.

I simply stated I was taking what is displayed in my account as factual.

So watch out if you go over the limit and make sure you are still getting the 2.8% on the portion under the maximum.

Nothing libelous and nothing sinister.

Now as far as the calculation goes, that would be hard for me to do because I only had it say 0.25% for 2 days and there have been varying amounts in that account over the course of the month. So to do a calculation would be a bit difficult for me.

Now the WATCH OUT part was because I have been told something by a bank employee on numerous occasions and it ended up being something else.

In my case watch out means CAUTION.

No harm in that

December 14, 2019
10:06 am
Briguy
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What's also interesting is when FIs give higher interest rates for amounts over 100K. Most will give it on entire amount, but others might just give it on portions above 100K.

December 14, 2019
10:08 am
Norman1
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The challenge is that the tiers seem to apply across Savvy Savings accounts:

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

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.

So, if one has $900,000 and $400,000 in two Savvy Savings accounts, then one could end up with 2.80% for the $900,000 in the first account. But, only $100,000 of $400,000 in the second account would be at 2.80%.

As Doug mentioned, maybe the online banking web site only shows the top tier applicable for a Savvy Savings account, assuming that is the customer has only one Savvy Savings account. Motive Financial may not have invested the effort to accurately show how the interest would actually be calculated at month end.

It would not surprise me if one were to split $1.3 million across two Savvy Savings accounts and their online banking would erroneously show the rate as being 2.80% for both accounts (from both accounts being under $1 million).

December 14, 2019
10:52 am
Bill
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MapleOne, re putting $1M with one bank you said "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." The interest differential on $1M in this case would be about $2K/month, before taxes, so hardly an "end of the world" amount for you. So an option would be to put $1,000,001 with Motive for a few days at the end of a month, the monthly interest calculation would be simple so you can compare to what you got, and then you'd know your answer for sure.

December 14, 2019
12:42 pm
savemoresaveoften
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feels to me its more about bragging having $1MM cash in a savings account... Or more of a troll than really asking for advice here. Maybe its only me that feels that way. I am too poor to have $1MM sitting in a savings account, and if I do have that, it wont be sitting at Motive. I am old and knowledge enough to remember the famous mini bonds that Lehman used to sell in Asia..

December 14, 2019
12:59 pm
canadian.100
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savemoresaveoften said
feels to me its more about bragging having $1MM cash in a savings account... Or more of a troll than really asking for advice here. Maybe its only me that feels that way. I am too poor to have $1MM sitting in a savings account, and if I do have that, it wont be sitting at Motive. I am old and knowledge enough to remember the famous mini bonds that Lehman used to sell in Asia..  

Not a fair comparison - to compare Motive/Canadian Western Bank to Lehman.

December 14, 2019
1:26 pm
MapleOne
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savemoresaveoften said
I am too poor to have $1MM sitting in a savings account, and if I do have that, it wont be sitting at Motive. 

A good investor has a stock market portfolio, real estate assets, and cash.

The cash part can sit making 0.25% or 3.3%, it all depends on what you do with it.

PS. If I was going to brag it would not be about anything I had sitting in a motive account.

December 14, 2019
3:44 pm
Doug
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savemoresaveoften said
feels to me its more about bragging having $1MM cash in a savings account... Or more of a troll than really asking for advice here. Maybe its only me that feels that way. I am too poor to have $1MM sitting in a savings account, and if I do have that, it wont be sitting at Motive. I am old and knowledge enough to remember the famous mini bonds that Lehman used to sell in Asia..  

I see what you're saying, and this point has been raised before by other forum users who thought MapleOne appeared to be bragging up their net worth. I gave MapleOne the benefit of the doubt at the time and didn't partake in that, but to me, the frequent mention of "$1MM" in every thread he or she makes, it does make me question whether or not those initially critical forum users were indeed correct...if the problem is truly about the interest rate changing on the whole balance when one exceeds the preset threshold (which we've not yet determined), the balance is immaterial.

I am also intrigued by Bill's thoughts, too. $2,000 per month is indeed a significant amount, but I get what he's likely thinking in that if this is truly just $1 million in one HISA representing 10% (or less) of MapleOne's wealth, then $24,000 is not a significant amount in the grand scheme of things. Most people would not spend so much time opening up HISAs with dozens of financial institutions to eek out an extra 25-50 bps in deposit interest. To them, life is too short.

If $1MM is only 20-50% of MapleOne's wealth, then I believe the point Bill was making is that it is truly not that "safe" to park 20-50% (or more) of one's wealth in any financial institution—regardless of deposit insurance. sf-cool

Cheers,
Doug

December 14, 2019
4:10 pm
MapleOne
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Doug said

If $1MM is only 20-50% of MapleOne's wealth, then I believe the point Bill was making is that it is truly not that "safe" to park 20-50% (or more) of one's wealth in any financial institution—regardless of deposit insurance. sf-cool

Cheers,
Doug  

20-50% of my net worth? Not even close...

I best not say more because I see the jealousy is rampant and one seems to be called a troll everytime money is mentioned. I thought for sure this was a financial forum, apparently I was wrong.

I'm simply gobsmacked that most everyone on this forum is dealing with numbers of 100k or below. I guess I need to find myself a place where talking about money is not considered as bragging. Imagine.... bragging about a million, you guys seriously need to grow up a bit. Where I'm from a million doesn't even buy you a decent house, you get a shack for that.

December 14, 2019
5:36 pm
Doug
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MapleOne said

20-50% of my net worth? Not even close...

I best not say more because I see the jealousy is rampant and one seems to be called a troll everytime money is mentioned. I thought for sure this was a financial forum, apparently I was wrong.

I'm simply gobsmacked that most everyone on this forum is dealing with numbers of 100k or below. I guess I need to find myself a place where talking about money is not considered as bragging. Imagine.... bragging about a million, you guys seriously need to grow up a bit. Where I'm from a million doesn't even buy you a decent house, you get a shack for that.  

MapleOne, I can assure you that many, many people on this forum have more than $100,000 on deposit with various financial institutions and/or invested (hopefully) in well diversified investment portfolios. To most members on this forum, one's net worth doesn't matter: what they seek, and what they offer, is advice (usually personal finance advice), share tips and tricks, nuances of the financial services trade, and spotlight hot deals (i.e., promotions) in financial services. My own portfolio is less than $1 million, but more than $100,000, but it doesn't matter to me.

Though I can't speak for everyone else, I can assure you there's no jealousy on my part...I'm pleased that you've been fortunate to accumulate a sizable nest egg. What I can say is that when forum members frequently share their net worth, it's seen as gloating and is generally not well taken by our community. Indeed, about 10 years ago or so, there was a user, "Roz," who frequently would share updates on his or her million dollar net worth and how he or she minimizes expenses by living living from home...in short, the community tired of his or her bragging and more or less just ignored him or her.

I say this as constructive advice because you have a lot to offer, your attention to detail in opening and using bank accounts is apparent, and you have a good head on your shoulders, but if you continue to share your net worth, you, too, will likely turn off the community. 🙁

Cheers,
Doug

December 14, 2019
7:58 pm
MapleOne
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I have not nor will I ever share my net worth, I am sharing a simple deposit and the fact that motive does not have the technology to accurately display what the interest rate is. By comparisons I got a special rate at Tangerine and if the balance stayed over 500k I got one amount and if it dropped below I got another. When I removed some funds the interest rate displayed was accurate. Same goes with motus and everyone else.

So call me a stickler but if I have a million on deposit somewhere it sure as heck does not make me feel comfortable when the rate displayed on my account is 0.25%. I even attached a screenshot of that in my first post.

I really don't know what everyone wants more than that, it is a fact and that is that. Now the whole net worth part is a lot of assumptions by a few members and I can assure you that if I was going to brag it would not be over a couple of bank accounts. Now if talking about the maximum allowable limit in a bank account turns off some members then so be it. Fact remains I max out all my accounts but it is presumptuous by anyone to assume, or state, that is my net worth. My net worth is nobody's business but my own and if that was all I had I sure as heck would not stick it in one bank account, I would do like a lot of folks here and deposit it at several institutions to assure I had my deposit insurance.

Unfortunately once you get to a certain level deposit insurance means squat because there are not enough financial institutions to spread it around in and even if there were most of them pay almost nothing for interest.

December 14, 2019
11:13 pm
Oscar
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Why didn't you just transfer out 25 cents ?sf-confused

December 15, 2019
12:15 am
Rick
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Attempting to drag this back on topic...
A) I don't care how much money you have. Good for you. Seriously.

B) Have you actually verified this? Difference in rate would be over a hundred fifty bux . I think I'd notice. I would guess the average CSR doesn't get many questions about that particular subject. Wouldn't be the first time one has given out misinformation. If they are paying on each tier, it would be regular interest for the first mil, and .25 for everything over and above. I seriously doubt any FI would drop the interest rate on the whole amount, but I've seen crazier things. I'm betting the system only allows showing 1 interest rate on the page, and it is more of a way to let you know you're over the maximum and only earning .25%. Let us know if you find out for sure.
And just to open another can of worms...
If you put the excess into a regular Motive savings account @ 1.5% (better than .25%), and since it has a $5million cap before reduced interest rate, would it count against your $1 million cap in your Saavy Savings?

December 15, 2019
3:32 am
Loonie
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I find it's hard to know whether to laugh or cry over this thread. So many words!

Look, if you are concerned about the rate, then send them an EMAIL and then you will have an answer you can hold them to. Simple.

That said, I would bet 20 cents plus interest that the first million gets the higher rate regardless. That would be the normal way these things operate, as Rick suggested. I'm surprised that someone with so much cash floating around
and being moved from place to place wouldn't have run into this before and know how to sort it out.

And here's a tip. Why not FIND OUT the email answer before posting? Then your post could be about clarifying the situation for anyone else who might care instead of inflaming it. I have found Motive to be prompt and reliable in answering emails.

And, FWIW, I don't think anyone here cares two hoots about how much money OP may have; certainly not Doug, from my experience of him online over the last several years.

December 15, 2019
4:15 am
MapleOne
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This is insane, how the heck did the topic focus on how much money I have or don't have. It's amazing how everyone will assume this topic is about net worth.

It's not, but I can see I will get nowhere here with everyone assuming one is bragging by mentioning maxing an account or moving money about.

I'll exit now and say one thing in closing, none of you have any idea of my net worth and that is how it's going to stay. I'm tired of having to defend myself instead of talking about the accounts and interest rates.

Hope you're happy

Bye

December 15, 2019
4:27 am
Loonie
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MapleOne said

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,

 

So.
You can afford to lose a million. You had no intention of keeping more than a million there. And you are jumping ship because of interest you were not planning on collecting anyway.
You are taking up people's time but accuse them of being jealous of your supposed wealth or of being trolls.

I suggest you give this million away to charity. Then you won't have to worry about its puny interest rate any more.

December 15, 2019
8:11 am
Bill
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MapleOne, you're right, you didn't really ask, you just started this thread as a "watch out". But I guess it doesn't make sense to some here that someone who's quite comfortable being $900K over CDIC limits because it's money they can afford to lose, i.e. obviously has a fair chunk of change (and who later says they're "worried" about a much smaller amount of interest in question - ?), can't figure out how to get satisfactory to them confirmation from that institution about what interest rate they're getting. That's all. (Either way, I wouldn't give it to charity, I'd keep it!)

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