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Email this6:11 pm
October 11, 2015
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Just read that Meridian Credit Union is applying to become a bank.
Not sure how it will differ if passed, but it seems to be the way to go after Home Trust became Home Bank!
8:39 pm
April 6, 2013
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dentgal said
Just read that Meridian Credit Union is applying to become a bank.
Not sure how it will differ if passed, but it seems to be the way to go after Home Trust became Home Bank!
Previous thread Meridian Online Bank Launching in 2018 discussed this.
Meridian Credit Union is applying to create a new bank that they will own. The situation will be similar to Alterna Bank and its parent Alterna Savings & Credit Union Limited.
This is the required notice published in the September 3, 2016 issue of the Canada Gazette:
MERIDIAN CREDIT UNION LIMITED
APPLICATION TO ESTABLISH A BANK
Notice is hereby given, pursuant to subsection 25(2) of the Bank Act (Canada), that Meridian Credit Union Limited, incorporated under the Credit Unions and Caisses Populaires Act, 1994 (Ontario) with its head office in St. Catharines, Ontario, intends to apply to the Minister of Finance (Canada) for letters patent incorporating a bank to carry on the business of banking in Canada.
The proposed bank will carry on business in Canada under the legal names “Meridian Bank” in the English form and “Banque Meridian” in the French form. The bank will offer a range of banking products and services to consumers across Canada, and its head office will be located in Toronto, Ontario.
Any person who objects to the proposed incorporation may submit an objection in writing to the Office of the Superintendent of Financial Institutions, 255 Albert Street, Ottawa, Ontario K1A 0H2, on or before October 10, 2016.
Toronto, August 20, 2016
Meridian Credit Union Limited
Note: The publication of this notice should not be construed as evidence that letters patent will be issued to incorporate the proposed bank. The granting of letters patent will be dependent upon the normal Bank Act application review process and the discretion of the Minister of Finance.
6:03 am
September 6, 2016
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Thanks everyone for showing the math re PCF 2.25% vs Tangerine 2% - and pointing out that the PCF interest is paid in 2017 which is good for tax reasons. It looks like PCF's offer is better slightly at this point. Thanks!
7:47 am
January 20, 2016
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save said
Thanks everyone for showing the math re PCF 2.25% vs Tangerine 2% - and pointing out that the PCF interest is paid in 2017 which is good for tax reasons. It looks like PCF's offer is better slightly at this point. Thanks!
It depends on how much are you going to invest... 'slightly' is very relative if you have 1 million dollars 
Do not forget that Tangerine might be way better if you have enough TFSA room...
1:00 pm
September 11, 2013
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My Tangerine 2% promo ends Saturday, I called today, told them about PC at 2.25%, they asked would I move it, I said yes, so they extended 2% to Dec 9. Same for wife.
I called PC on Tuesday to enroll for the 2.25%, got a confirming email within a few hours. Wife did the same, got no email so she called today and found she in fact hadn't been enrolled so did it again today, no email yet.
7:04 pm
April 6, 2013
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AltaRed said
I will test the system by waiting until (or if) I see an online offer when I sign in. My account balance has been 0 for a number of months.
Looks like the online offer is being rolled out.
Signed onto PC Financial today and the online 2.25% offer was presented to me for acceptance.
7:37 pm
September 8, 2016
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I'm not clear about PCF " The Promotional Interest is calculated on December 31, 2016 on the portion of the Eligible Account’s average daily closing balance during the Offer Period that exceeds the closing balance as at August 31, 2016 ". Does that average out balance during the offer period from August 31 to December 31 2016? If so, we can not move the fund out before December 31, 2016. Otherwise average daily balance will be low, or zero balance. I could be wrong, Can anyone elaborate PCF's " average daily closing balance during the Offer Period"
7:48 pm
January 7, 2016
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WHAT IT IS:
The average daily balance method is a way of calculating interest by considering the balance owed or invested at the end of each day of the period rather than the balance owed or invested at the end of the week, month or year.
HOW IT WORKS (EXAMPLE):
The frequency of interest compounding affects how lenders and borrowers use the average daily balance method. If interest compounds monthly, then borrowers and lenders use the following formula to calculate interest under the average daily balance method:
(A / D) x (I / P)
Where:
A = the sum of the daily balances in the billing period
D = number of days in the billing period
I = annual interest rate
P = number of billing periods per year (usually 12)
If interest compounds daily, then lenders and borrowers calculate the interest on each day's ending balance and add this interest to the next day's beginning balance. Note that ending daily balances reflect the day's charges, payments, deposits, and withdrawals in both versions of this method.
Let's assume you have an XYZ Company credit card that uses the average daily balance method and charges an 18% annual rate of interest. Below is the transaction history for the most recent billing period.
Notice that daily compounding generates more interest and leaves the borrower with a higher balance at the end of the billing period. The difference is more pronounced the higher the balance owed. Also notice payments lower the outstanding balance immediately in both cases, which lowers the interest accrued on the remaining balance.
The average daily balance method doesn't just apply to debt; investors are well served to understand how an institution's choice of interest-calculation methods affect the amount of interest deposited into the investor's account.
WHY IT MATTERS:
The average daily balance method is just one way lenders and borrowers can calculate interest (the Truth in Lending Act describes acceptable methods). For example, interest calculated using the average daily balance method is usually lower than interest calculated under the previous balance method, which applies interest to the last period's balance. However, the average daily balance method tends to create higher interest charges than the adjusted balance method, where interest based on the period's ending balance.
Because of the variety of interest calculation methods out there, borrowers should compare lender offers and investors should compare investment offers by carefully reading the disclosure accompanying those offers. Depending on the anticipated activity, the borrower might save money and the investor might make more money by preferring one calculation method to another.
If that helps to understand it.
8:49 pm
April 6, 2013
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auca said
I'm not clear about PCF " The Promotional Interest is calculated on December 31, 2016 on the portion of the Eligible Account’s average daily closing balance during the Offer Period that exceeds the closing balance as at August 31, 2016 ". Does that average out balance during the offer period from August 31 to December 31 2016? If so, we can not move the fund out before December 31, 2016. Otherwise average daily balance will be low, or zero balance. I could be wrong, Can anyone elaborate PCF's " average daily closing balance during the Offer Period"
My interpretation is that the average of the 122 daily closing balances of September 1 to December 31, 2016 will be calculated. 122 days of bonus interest will then be paid on (a) the part of that average that exceeds the closing balance of August 31 or (b) $500,000, whichever is less.
Moving new funds out before December 31 will zero the part of the closing balance above the August 31 closing for that day and subsequent days. It won't necessarily zero the average for the entire offer period.
If I deposit an extra $100,000 in for only one day, the average will be $100,000/122 = $819.67, not zero, above my August 31 closing balance.
10:09 pm
October 21, 2013
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Are you suggesting that if one opened a new account on, let's say, Sept 12, that the first eleven days of the month would be part of the average, even though one didn't yet have an account on those days? This could be a big disincentive to new customers, if true.
10:52 am
October 11, 2015
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You guys are doing better than I am!!
When the PCF offer ended, I called them and they wouldn't extend the offer (2.25) or make me an offer to entice me to keep the money there.
I called Tanga and they reminded me that I can get 2% BUT only till Oct 9th!! Sounds like everyone else has been offered 2% till the end of the year!!
BTW, CIBC is offering 1.75 in their e-savings account. I'm not sure if this goes until the end of the year.
12:29 pm
February 16, 2013
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dentgal said
BTW, CIBC is offering 1.75 in their e-savings account. I'm not sure if this goes until the end of the year.
Hi dentagal!
Where do you see this offer? Can you provide a link? I may be interested as my current offer is up with Tangerine and I really hate having to call in...
Many thanks.
1:33 pm
February 24, 2015
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auca said
I'm not clear about PCF " The Promotional Interest is calculated on December 31, 2016 on the portion of the Eligible Account’s average daily closing balance during the Offer Period that exceeds the closing balance as at August 31, 2016 ". Does that average out balance during the offer period from August 31 to December 31 2016? If so, we can not move the fund out before December 31, 2016. Otherwise average daily balance will be low, or zero balance. I could be wrong, Can anyone elaborate PCF's " average daily closing balance during the Offer Period"
You have hit the nail on the head. If someone can get 2% at Tangerine or EQ paid monthly, why would s/he put money in PCF where it will be January before the true interest rate, possibly 2.25%, will be revealed?
1:38 pm
December 12, 2009
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2.25% is "no screaming hell" of a promotion, unless I already have an account with that financial institution. My threshold is that it must be a minimum of 50 basis points higher than that of Implicity Financial, a division of Entegra Credit Union, to move my money but that's if I already hold an account with both institutions. Since I don't hold a PC Financial account and joining now would void my future eligibility for a better, "new member promo" (i.e., $200 in PC Points for payroll direct deposit upon joining) and the hassle with opening an account, it'd have to be greater than 3% to make join and essentially "give up" that potential "new member promo" I could've earned had I waited. Kinda complicated but make sense?
My suggestion: As Tangerine, typically, always has non-registered savings promotions in the spring & fall seasons and a registered savings promotion in the winter season and usually has a non-registered savings promotion in the summer months, I'm going to deposit my funds to my Implicity Financial account on Sept. 29th most likely by cheque at the ABM after hours but before the end of the business day (to capture that extra day's interest at both Implicity and Tangerine), since cheque clearing with Tangerine typically takes 2-3 business days. I'll then set up a future-dated transfer for 12:01 AM ET Sept. 30th (to be safe though I'll still earn 0.25-0.50% in my Tangerine chequing account and 1.70% in my Implicity Financial savings on the same funds) to transfer said funds from my Tangerine savings account to my chequing account, to ensure the cheque clears either Monday or Tuesday, in order to ensure that I receive daily interest from the daily interest on my funds while the cheque is in transit from both Tangerine and Implicity Financial. It might not seem like much but an extra $10-12 in interest is 2-3 Starbucks coffees, as an example. 
On the off chance Tangerine doesn't do another promo, the cheque clears my Tangerine account Monday or Tuesday and the hold comes the funds at Implicity Financial in another 7 days and I'm enjoying a still high 1.70-1.75% annual interest there. Should they have a promotion in early October, as Tangerine typically takes the balance of one's Applicable Accounts as the 30th or 1st of the month, the funds will have been transferred into my Tangerine chequing account as at 12:01 AM ET on Sept. 30th, of chequing accounts aren't an Applicable Account so I'd thereby be free to move the funds back to Tangerine from Implicity Financial via EFT likely because I'm running low on cheques and don't want to use up the last 2 cheques and the clearing process is faster with Implicity Financial anyway. Sure, the funds will have to remain at Implicity until the hold comes off but they're still earning 1.70-1.75% interest for that first week of October and will more than be made up by a likely 3% or 2.75% fall promo from Tangerine.
Cheers,
Doug
4:01 pm
April 6, 2013
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Loonie said
Are you suggesting that if one opened a new account on, let's say, Sept 12, that the first eleven days of the month would be part of the average, even though one didn't yet have an account on those days? This could be a big disincentive to new customers, if true.
Yes, the first eleven days of September would be part of the 122-day average. But, I think it will still work out to what one expects.
Additional promotional interest in that case for the new money M deposited September 12 would be
(2.25% - 0.8%) * 122/365 * [122-day average]
= 1.45% * 122/365 * [(11 * $0 + 111 * M)/122]
= 1.45% * 1/365 * [11 * $0 + 111 * M]
= 1.45% * 1/365 * [111 * M]
= 1.45% * 111/365 * M
6:09 pm
September 11, 2013
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Doug, sounds like it would be a lot easier to just not go to Starbucks for those 2 coffees.
10:16 pm
October 21, 2013
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Thanks, Norman.
I think my conclusion on this promo is the same as the one I have come to previously with PC - not worth the nuisance factor of opening an account.
I have found their practices a bit sleazy in the past, and this is no exception. To issue a promo several days after it supposedly started, knowing that most people will never get the full 2.5% because they had no way of knowing they needed to p the money in on Sept 1 is not a practice that I find acceptable. Having to leave it there for the duration is another matter, but at least one could be aware of that at the time of deposit.
Effectively, it's a GIC, but only if you put the money in at the start and leave it there. Otherwise, the interest you will receive is all but unknowable until the end. I prefer the use of the phrase "calculated daily" and deposited monthly" or words to that effect. Then I know what I'm dealing with, and that it is to my best advantage.
11:41 pm
April 6, 2013
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Loonie said
…
I have found their practices a bit sleazy in the past, and this is no exception. To issue a promo several days after it supposedly started, knowing that most people will never get the full 2.5% because they had no way of knowing they needed to p the money in on Sept 1 is not a practice that I find acceptable. Having to leave it there for the duration is another matter, but at least one could be aware of that at the time of deposit.Effectively, it's a GIC, but only if you put the money in at the start and leave it there. Otherwise, the interest you will receive is all but unknowable until the end. I prefer the use of the phrase "calculated daily" and deposited monthly" or words to that effect. Then I know what I'm dealing with, and that it is to my best advantage.
The offer is actually fine. People will receive 0.8% + 1.45% = 2.25% per annum for the days their new money is on deposit.
I guess I wasn't as clear as I could be in pointing out what the calculations show. Someone depositing new money on September 12 will have the funds deposited for 111 days of the offer. PC Financial's 122-day average daily closing balance calculation ends up with
1.45% * 111/365 * M
of bonus interest. That's the same bonus interest as 111 days at 1.45% per annum. Add the 0.8% per annum of regular interest and one totals 2.25%!
5:24 am
September 11, 2013
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You can always call an institution for clarification if you're not sure about some wording, I've generally had success with that. Otherwise I agree with Loonie - if you find an institution's practices distasteful, instead of complaining or criticizing just take your money to institutions that meet your principles and standards. There's a ton of choice out there, something for everybody.
9:24 am
October 27, 2013
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Loonie said
I prefer the use of the phrase "calculated daily" and deposited monthly" or words to that effect. Then I know what I'm dealing with, and that it is to my best advantage.
I like the phrase 'calculated daily'. I am perfectly fine with accumulated interest being deposited after the promo is over, especially if it carries over into the next tax year.
I think PCF could be a little faster on communicating their promo though. It should have been out on Sept 2nd to everyone. That said they had people available all weekend to register for the promo, something other institutions don't do.
FWIW, I can see them waiting a day to see what their competition may be announcing before pulling the trigger on what could be 2.0%, or 2.1%, or 2.2%, etc. After all, they really only have to meet their competition or better them by a decimal point and waiting to see if there is someone else out there jumping at the starting gate could be a strategic play. As Bill suggested, there is a lot of competition out there. Go to where you are happy.
I've taken this promo only because I still had a PCF account, and have taken a number of their promos in past years (but nothing yet this year). I got my money into PCF this week. I don't care about 2-5 days lost here and there. The AT lost interest is not worth a $10 Starbucks card or two.
Please write your comments in the forum.