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ScotiaBank Momentum Savings Premium Account - "up to 2%"
May 14, 2015
10:17 am
Loonie
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Bill said

So if you want the max 2% to July 31, put in at least $5K by June 15 and leave it there for 90 days, no withdrawals.

So, is rqs correct, then, in saying that "If you leave untouched to Sept 15, you will earn an average of about 1.7% for the whole 90 days."? - assuming no other interest changes during this time period.

Are there any conditions under which you can make your deposit, collect 2% pro-rated for a specific period of time, then withdraw your money and put it somewhere else to get a better rate? I don't see that there are, as explained so far.

May 14, 2015
12:37 pm
Bill
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Loonie, I'll leave it to you to check rqs's calculation. As well, the conditions are as I stated so you'll have your second answer too. If you want to verify here is the link to Scotiabank's info, including terms and conditions:

http://www.scotiabank.com/ca/en/0,,8811,00.html

May 14, 2015
2:20 pm
Bill
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Sorry about the bad link above (?) but if you type or paste it into your address box it'll work.

Note also that if you click on Terms and Conditions you'll see a Schedule A with 6 examples of the amount on which the "bonus" interest, the .5% to July 31 bonus portion, is calculated in various scenarios.

Seems to me, based on the overall interest calculations, this account might not be of interest to folks who want drop in for a while to get a promo rate and then move their money out as soon as the promo period is over. Scotiabank's strategy with this particular product suggests they're after a different crowd here (I think).

May 14, 2015
5:42 pm
2of3aintbad
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If you have enough capital to make it worthwhile to chase rates, why would you even consider this 2% promotion? You can get paid monthly with no complicated rules, 2.1% at Tangerine and 2.5% at BMO, or after the end of June, 2.6% at President's Choice

May 14, 2015
5:52 pm
Bill
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Agreed, 2of3, though note PC 2.6% promo rate only applies to deposits made by tomorrow.

May 15, 2015
6:33 am
2of3aintbad
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Yes, thanks for the reminder. Last day to deposit for PC 2.6% is May 15.

May 16, 2015
10:44 am
csw
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If anyone is still confused about this offer and/or account, this is just to point out that you can consult my previous detailed post, contained below.

csw said

The "bonus" component is the advertised promo until July 31st. The "regular" and "momentum" components are standard to this new account.

0.75% for the Regular Rate;
0.50% "Bonus Rate" -- effective immediately until June 15 ( if 5k < "closing bal" < 250k), and from June 16 to July 31 based on the June 15 closing bal.;
See Schedule A
0.75% "Momentum Savings Premium Rate" -- effective as of the day when closing bal. > $5,000.
See Schedule B

Basically,
one can open the account right away and benefit from the a) Regular Rate, b) Bonus Rate, and c) Momentum Premium Rate, if at least 5k is deposited (the sooner the better as bonus interest ends on July 31). The regular and bonus components will be deposited at the end of the month; meanwhile the premium rate savings will be deposited on the 90th day.

Pitfalls:
If one makes any debits (but stills stays above 5k), then they shall lose the "Momentum Savings Premium Rate" component of 0.75% that has been accruing for a period up to 90 days.
The "Bonus Rate" from June 16 - July 30 will be based on the June 15 bal. Therefore one can keep making deposits until Jun 15, but after that date, there's no reason to bother as new deposits will no longer qualify for the current promotion.
Finally of note, if balance falls under 5k, then not only are both the bonus and momentum rates lost, but also the regular rate falls to 0.10%.

May 17, 2015
7:51 pm
Bill
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csw, the bonus rate (.5%) after June 15 is calculated on the lower of the June 15 balance and the lowest balance after that (in case of withdrawal) to July 31. Also, the bonus rate is still available if account balance goes below $5K. See examples 2 & 3 in Schedule A of the Terms and Conditions where, in each case, bonus interest is calculated on $2K.

May 18, 2015
3:55 pm
csw
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Bill said

csw, the bonus rate (.5%) after June 15 is calculated on the lower of the June 15 balance and the lowest balance after that (in case of withdrawal) to July 31. Also, the bonus rate is still available if account balance goes below $5K. See examples 2 & 3 in Schedule A of the Terms and Conditions where, in each case, bonus interest is calculated on $2K.

Many thanks Bill. Changes noted. I think my post is still useful now given the corrections, especially in regards to the timing of rate qualifications. (...My initial motive was to correct the OP who had mixed up the qualifications of the momentum vs bonus rates...)

csw said

The "bonus" component is the advertised promo until July 31st. The "regular" and "momentum" components are standard to this new account.

0.75% for the Regular Rate;
0.50% "Bonus Rate" -- effective immediately until June 15 (on closing bal. <= 250k), and from June 16 to July 31 based on the lesser of a) June 15 closing bal., or b) lowest daily closing bal. from June 16 to July 31;
See Schedule A
0.75% "Momentum Savings Premium Rate" -- effective as of the day when closing bal. => $5,000.
See Schedule B

Basically,
one can open the account right away and benefit from the a) Regular Rate, b) Bonus Rate, and c) Momentum Premium Rate, if at least 5k is deposited (the sooner the better as bonus interest ends on July 31). The regular and bonus components will be deposited at the end of the month; meanwhile the premium rate savings will be deposited on the 90th day.

Pitfalls:
If one makes any debits (but stills stays above 5k), then one shall lose the "Momentum Savings Premium Rate" component of 0.75% that has been accruing for a period of up to 90 days.
The "Bonus Rate" from June 16 - July 31 will be based on the lesser of either the June 15 balance, or any daily balance that falls below the June 15 balance. Therefore one can keep making deposits until Jun 15, but after that date the new deposits will no longer qualify for the current (Bonus Rate) promotion.
Finally of note, if balance falls under 5k, then the "Regular Rate" falls to 0.10%.

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