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RBC Does not pay accrued bonus interest if you close your account
June 12, 2024
11:32 am
Corange
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I had opened a savings account at RBC back in February for the first time to get the new account promotional rate. I ended up emptying it out in early May and since I was at a branch for work anyway the next week I asked if I could close it and gt my accrued interest. They said yes and paid me out, but I noticed it was quite a bit less than I expect. The teller agreed with me that it was nowhere near the 5.5% rate, and forwarded the matter to corporate. It took them over 5 weeks to finally get back to me, and they said that oh it's in the terms and conditions if you close the account before we pay the interest you forfeit it. This was indeed on the terms and condition, but not on the main page of disclaimers, hidden in the additional conditions. I lost out on about $300 of interest by not waiting a month to close out the account, which sucks, especially as the teller was not aware that I wouldn't get my bonus interest when I asked when asking about closing my account.
TLDR is that RBC will not pay you any bonus interest in the month you close an account, so make sure to keep it open until every cent has been paid if you do use them.
I did find the account opening process terrible - I opened it online and got directed to take my ID to a branch to complete, and they had to start over from scratch because they said the account didn't exist, plus they have a $5 fee to take
out any money. Still, it was a good rate when I didn't have any offers, so at least I was able to park my money and earn interest for part of that time. Definitely won't have an account with them again though.

June 12, 2024
8:33 pm
everhopeful
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You may have a leg to stand on on this one... I am looking at the T&C on the current bonus interest promo and it states:

If for any reason an Eligible eSavings Account is closed or switched at any time during the Promotional Period, you will not be paid any interest at the Bonus Interest Rate that would otherwise have been earned in the applicable closed or switched Eligible eSavings Account for any portion of the month in which you closed or switched that account. (For example, if you close your Eligible eSavings Account on June 15, 2024, you will not be paid interest at the Bonus Interest Rate for that account for the period of June 1, 2024 to June 15, 2024, inclusive). Additionally, if you close or switch an Eligible eSavings Account on or before the second business day of a given calendar month, you will forfeit any interest at the Bonus Interest Rate earned during the previous calendar month for the account that you so closed or switched. (For example, if you close your Eligible eSavings Account on July 1, 2024, you will not be paid interest at the Bonus Interest Rate for that account for the period of June 1, 2024 to June 30, 2024, inclusive). For clarity, however, please note that you will still earn and be paid all applicable interest at the Regular Interest Rate in respect of that account until the date before the day on which you close or switch that account.

The way I read this (as long as the T&C on your offer is the same wording) is you should receive bonus interest for Feb-Apr unless you closed it before May 2. It may be worth digging in to this and being a thorn to them if they are not willing to live within their terms.

June 13, 2024
4:58 am
Corange
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I had a large balance in there so it was the interest for the first week of May that I forfeited since neither I nor the teller knew this

June 13, 2024
5:43 am
JohnnyCash
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This is a lesson for all of us to make sure the interest is paid out before closing an account.

June 13, 2024
8:55 am
Bill
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Or read the complete t&c before you even open an account that you plan to open only to take advantage of an enticing new account promo, you can assume there will be some conditions designed to discourage people with only that motivation for opening the account.

June 13, 2024
9:15 am
davidgeorge
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Move the fund out, but leave the account open.

June 13, 2024
9:40 am
The Rock
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davidgeorge said
Move the fund out, but leave the account open.  

Yes. I would have at least waited for the interest to be paid into my account before closing it. Without an account, I'd be wondering where they would deposit the interest?

June 13, 2024
9:53 am
Norman1
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Also, with the account closed, the separate job that calculates the bonus interest and pays it separately on second business day of the next month would likely skip the account.

The challenge with relying on bank staff is the staff don't always have the correct understanding of the details of the products and offers. That's not only at RBC Royal Bank either!

For example, bank draft is lost by Canada Post or courier? No problem. Just come back. Sign some forms and a replacement draft would be issued. Then, a $300,000 draft gets lost and it is not just "sign some forms" to do an actual replacement.

June 14, 2024
7:27 am
RetirEd
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What the agent of the company (the teller) tells you can be binding. Protest, as they have recordings of you asking that specific question and being told the wrong answer. Make noise. Remember Alternate Banking Plan B!

RetirEd

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