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Scotiabank Aug 26 - Jan 31 2020 Promo
August 26, 2019
8:16 pm
miro
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Found this on Scotia Momentum Savings Acc.
Up to 3% for 360 days
But more realistically it's just 2.5% for 3 months.
Link

August 26, 2019
8:39 pm
Bud
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Here we go again momentum why more realistically 2.5? Isn't it 3% the full amount if held for 360d?

August 27, 2019
12:25 am
Loonie
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Detailed T & C here: https://www.scotiabank.com/ca/en/personal/bank-accounts/savings-accounts/momentum-plus-savings-account/offer-terms-conditions.html

Anyone who can make sense out of this gibberish is welcome to it. I don't have the patience or the desire.

August 27, 2019
11:45 am
Brimleychen
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Don't forget you can still get 3% for a 15 months GIC from Peoples Trusts. Plain and simple.

https://www.peoplestrust.com/en/peoples-trust/high-interest-accounts/rates/

August 28, 2019
6:16 am
hwyc
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Treat it within the framework of a cashable GIC to earn the premium interest. The longer you hold the "no-debit" period, the higher the rate you earn.

Sign-up for this promo by November 30, 2019 to get bonus interest until January 31, 2020, on eligible deposits. Scotiabank reserves the right to change interest rates at any time, and without notice ... buyers beware.

No-debit Premium Period Regular Interest Premium Period Interest Bonus Interest Combined
90 days 1% 0.5% 1% 2.5%
180 days 1% 0.6% 1% 2.6%
270 days 1% 0.8% 1% 2.8%
360 days 1% 1% 1% 3%


Interest rates are per annum and calculated daily.

Regular Interest - paid monthly
Premium Period Interest - paid at the end of each Premium Period, with a maximum of five Premium Periods at any one time
Bonus Interest - paid within 7 days after the end of each campaign month

August 28, 2019
6:44 am
Bud
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I assume if held 360d u get 3% each day. I guess they clawback if pull early

Heard regular and bonus interest component can fluctuate

August 28, 2019
7:17 am
Doug
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dealjunkie said
I assume if held 360d u get 3% each day. I guess they clawback if pull early

Heard regular and bonus interest component can fluctuate  

Regular interest can definitely fluctuate, often in tandem with or even on a more aggressive pace than the BoC. Premium interest and Bonus interest likely won't be changed, but as we've seen, I'm sure their T&C states they can change those rates too, often without warning and for any reason. So, it's similar to, and slightly more flexible than, Hubert's 1-year quarterly GIC, but at least with Hubert, you're protected for the duration of the term from downward pricing pressures (though you also don't benefit from upward price movement).

It's not a bad product from a AA or AA(low)-rated issuer (a top tier global financial institution) with which you can safely exceed your CDIC limits. For those with lots of savings (i.e., millions in excess, non-investment dollars), it's a good option (not sure what, if any, cap is, though; it's likely capped at $1-10 million) but for the rest of us, I weigh it with the altruistic and laudable motivation of helping to support lending in rural Manitoba towns. 🙂

Cheers,
Doug

August 28, 2019
9:08 am
Bud
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Scotia says interest paid at end of each cycle 90 int. paid 180 int. paid 270 int. paid 360 int..

To get 3% apparently aside from fluctuations ull be paid out in full after 360.

Penalty if pull out early 360 cycle only get 1% int.

Therefore if its likely rates will fall maybe a shorter cycle is the better option.. for example if 360 overall yield drops to 2 who wants to hang in there

August 28, 2019
9:44 am
krwilson
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I have had Scotia bank accounts for years now, along with my wife. The main reason was for doing ATM withdrawals when in the Dominican Republic...since they have branches there and no fees. Everything else I don't have much use for from them.

BUT in the past I tried using these Momentum accounts and just find it too gimmicky for me. Maybe they do it to try and keep your money in or maybe just to make it overly complicated....I do not know. What I do know is that just give us a rate and pay it out monthly is a better sales tool in my books.

August 28, 2019
12:35 pm
PS
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dealjunkie said
Here we go again momentum why more realistically 2.5? Isn't it 3% the full amount if held for 360d?  

-----------------

You would think that you would get 3% for the 360 days... but I do not believe it is true. They key is the in the Terms and Conditions and the Signup form for the offer. (Section 1).
https://www.scotiabank.com/ca/en/personal/bank-accounts/savings-accounts/momentum-plus-savings-account/offer-terms-conditions.html

"The Bonus Interest Rate Offer runs from August 26, 2019 to January 31, 2020, on eligible deposits from another bank or financial institution deposited between August 26, 2019 and November 30, 2019 (the Offer Period) into a new or existing Scotiabank MomentumPLUS Savings Account."

There are 3 kinds of interest -- Regular, Premium Period, and Bonus interest that add together. Since the bonus interest (1%) drops off on January 31st 2020 (no matter what term you choose)... You are left with only two kinds of interest... and they do not add up to 3%.
This is all very deceiving. The graph would make you think it lasts for whatever term you choose.2019-08-28_15-01-44.jpg

August 28, 2019
2:51 pm
hwyc
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Good grief ... Sept, Oct, Nov, Dec, Jan ~150 days left for the 1% bonus from now. Now I understand why miro said "more realistically it's just 2.5% for 3 months"

Thanks PS ... +1 & welcome to the site

August 28, 2019
3:49 pm
Loonie
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As far as I recall, all of these Big Bank offers turn out to be BS upon close examination.
My rule of thumb is that if it seems like a complicated calculation, it's not going to be worth considering, so I don't bother. So far correct - usually the rate is illusory or there are additional costs embedded. I've saved a lot of time ignoring these offers!sf-smile

August 28, 2019
9:57 pm
Norman1
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If one starts a 360-day Premium period today, one would end up with the following regular, premium, and bonus interest:

August 29, 2019 - January 31, 2020       February 1, 2020 - August 22, 2020      
156 days 204 days
1.0% Regular interest
1.0% 360-Day Premium interest
1.0% Bonus interest
3.0% total interest 2.0% total interest

Works out to be about 2.433% over the 360 days.

August 29, 2019
6:16 am
Bud
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Norm is the total interest earned on the 90d cycle 2.5%? How about the 180 2.6? And the 270 2.8?

August 29, 2019
10:20 am
gicjunkie
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I totally agree with Loonie.

These convoluted rules created by the banks are there to confuse the consumer and are there only to benefit the banks, not the consumer. If one cannot interpret the offer easily, then it is very likely that it isn't worth the effort. There are too many rules, which may be easily broken, to prevent the consumer from attaining the ultimate benefit. Scotiabank has created an "insurance company like" agreement, and we all know how insurance plans work.

August 29, 2019
5:24 pm
Bud
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Someone should report them

August 29, 2019
6:40 pm
Norman1
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dealjunkie said
Norm is the total interest earned on the 90d cycle 2.5%? How about the 180 2.6? And the 270 2.8?

No, no, and no. sf-frown

That's because Bonus interest stops on January 31, 2020, regardless of when one's 90 day, 180 day, 270 day, or 360 day cycle ends.

For a 90-day cycle starting November 12, the Bonus interest is paid for the first 81 days, November 12 to January 31. Interest is 1% + ½% + 1% = 2½% for those 81 days and then 1% + ½% = 1½% for the remaining 9 days. That works out to be 2.4% for the 90 days.

Interest does peak at 2½% for some days, but is 2.4% overall for the 90 days.

The colourful interest rate vertical bars on the MomentumPLUS Savings Account page represent the peak interest paid during the offer period and not the overall interest paid over the 90 day, 180 day, 270 day, or 360 day cycle.

August 29, 2019
7:15 pm
Bud
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Norm the 90d cycle can start now rather than later so isnt it 2.5?

August 29, 2019
11:15 pm
Norman1
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Yes, those 90 day cycles that are entirely within the August 26, 2019 to January 31, 2020 period will receive the 1% Bonus interest on new money for the entire cycle.

August 30, 2019
6:13 am
Bud
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Norman1 said
Yes, those 90 day cycles that are entirely within the August 26, 2019 to January 31, 2020 period will receive the 1% Bonus interest on new money for the entire cycle.  

and the premium .5 and reg int. 1% so 2.5 the 90d being the only cycle assured assuming reg int doesnt drop

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