2% on new money (Oct 1, 2020 - Mar 31, 2021) | Simplii Financial | Discussion forum

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2% on new money (Oct 1, 2020 - Mar 31, 2021)
October 6, 2020
8:47 pm
Norman1
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hwyc said
I found this Q&A on the 2% page

If I have an RGIC or GIC that has reached the end of its term, will I get the special interest rate if I re-invest the money in a HISA, TFSA or RRSP ?

Yes! The money will still count as new funds into your HISA, TFSA or RRSP account, as long as your savings account's closing balance is higher than its starting balance beginning October 1. Turns out the old saying is true: it pays to re-invest.

... Hope this helps  

Looks like a slightly different 2% offer. That 2% offer is open to everyone. sf-smile

That deserves its own thread!

October 7, 2020
5:36 am
Patch002
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That is good to know. Thank-you Norman1.

I wonder if Simplii could add to their FAQ an answer that spells out exactly what is considered the "beginning" balance in plain english i.e. Savings account, HISA, any registered Savings/HISA etc. Additionally, spell out what is not considered part of the "beginning" balance i.e. GIC, chequing account, Line of Credit. As the situation progresses they could add or modify the accounts. It is their product, shouldn't they know what is included?

I am slightly concerned by their clause in the Terms & Conditions where it states that "Promotional Interest will not be paid on existing funds that were in any Simplii Financial deposit or registered account as at September 30, 2020 and are transferred to an Eligible Account during the Offer Period."

A deposit account has a broad definition (including any account where you can deposit and withdraw, this includes GIC (you may have to forego interest though)).

Now you have 2 contradictory statements by Simplii. Good thing that "tie goes to the runner".

Or is it in their interest to keep clients "in the dark" thereby causing confusion, misunderstanding and potentially upset clients.

October 7, 2020
7:22 am
Bill
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They only offer the HISA and a chequing account, as well as RRSP and TFSA registered accounts, and the T&C are clear about those. Non-registered GICs are the grey area, so they specifically brought that up and addressed it in the Q&A.

You can't forgo interest and cash in their non-registered GICs before maturity. Here's their Q&A info on that:
"Typically, you can only access your GIC when it matures. You can redeem registered GICs before maturity in a few situations:
To participate in the Home Buyers' Plan
To participate in the Lifelong Learning Plan
Due to extreme financial hardship (subject to approval)"

October 7, 2020
8:57 am
Patch002
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From the same 2% page (and FAQ), under "Legal"

"Account" means all or any of your Simplii Financial accounts provided by the direct banking division of CIBC (including but not limited to the chequing account, line of credit, loan, GIC account, savings account, TFSA or RRSP).

So there you have it, the FAQ says that GIC transferred in will count as "new money" but their "Legal" says otherwise that it is an account and subject to
"Promotional Interest will not be paid on existing funds that were in any Simplii Financial deposit or registered account as at September 30, 2020 and are transferred to an Eligible Account during the Offer Period. However, GIC is not considered an account, it is an investment certificate. So, if you transfer funds from a GIC to HISA, that is considered new money. "

I don't find this to be clear at all.

October 7, 2020
12:31 pm
Bill
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You quote "GIC is not considered an account, it is an investment certificate. So, if you transfer funds from a GIC to HISA, that is considered new money." Good.

And the FAQ question re whether matured GIC money going into a HISA qualifies answers (with an exclamation point!) "Yes! The money will still count as new funds into your HISA, TFSA or RRSP account, as long as your savings account's closing balance is higher than its starting balance beginning October 1. Turns out the old saying is true: it pays to re-invest."

Specific addressing by Simplii of GIC to HISA re promo rate question trumps Simplii's general legal terms, settles it in my mind. Guess you'll have to call, Patch.

October 7, 2020
1:19 pm
Patch002
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Bill said
You quote "GIC is not considered an account, it is an investment certificate. So, if you transfer funds from a GIC to HISA, that is considered new money." Good.

And the FAQ question re whether matured GIC money going into a HISA qualifies answers (with an exclamation point!) "Yes! The money will still count as new funds into your HISA, TFSA or RRSP account, as long as your savings account's closing balance is higher than its starting balance beginning October 1. Turns out the old saying is true: it pays to re-invest."

Specific addressing by Simplii of GIC to HISA re promo rate question trumps Simplii's general legal terms, settles it in my mind. Guess you'll have to call, Patch.  

Bill, I did call in.
First, Simplii said that matured GIC transferred-in do not count as "New Money" and therefore do not receive "Promotional interest rate"
2nd, I pointed out their FAQ which says that it is "New Money"
3rd, Simplii said that the Legal terms say that it is not "New Money" because it was in their accounts at the beginning account balances.
4th, I asked them to update their FAQ and address GIC, chequing, line of credit before I transfer in any money.

So believe whatever you want, at this point I see 2 contradictory statements from Simplii (on their website).

Me, I'm transferring to Tangerine where it is considered "New Money".

October 7, 2020
1:30 pm
Patch002
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p.s.

I disagree that FAQ overrides Legal, it could just as easily be Legal overrides FAQ.

As having some experience regarding the Income Tax Act, Interpretation Bulletins, Information Circulars or just dealing with CRA agents, it doesn't matter what anyone else says, it only matters regarding what is in the Income Tax Act and by extension what the Courts determine (or What does the Law say?).

Also, if you have a contract with someone and there is subsequently a dispute, don't they consult the Legal contract (unless the courts determine that the contract was illegal and thus, unenforceable).

October 7, 2020
4:34 pm
Bill
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Based on what you tell me, Patch002, I see the disconnect between their very specific info re GICs on their site and what the agent told you. I would have asked them to explain why the info on the site makes that very specific point about maturing GIC money qualifying, why is that specifically addressed on the site, twice, yet now I'm being told it's not the case? And/or I would have asked to speak to a supervisor for confirmation of what agent said, or maybe the person who wrote the FAQ re the GIC situation. But anyway, you are absolutely correct, the "law", terms of written contracts, always wins over FAQ and similar explanatory material or what someone has told you. (When I referred to specific over general info, I was kind of referring to a general rule for interpreting legislation, i.e. when a limited-application provision addresses a specific situation it usually prevails over a conflicting general provision that applies in general.)

I don't have this situation of a maturing GIC, doesn't affect me, but you're right to get it straight if it affects you.

October 7, 2020
6:58 pm
Patch002
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Bill said
Based on what you tell me, Patch002, I see the disconnect between their very specific info re GICs on their site and what the agent told you. I would have asked them to explain why the info on the site makes that very specific point about maturing GIC money qualifying, why is that specifically addressed on the site, twice, yet now I'm being told it's not the case? And/or I would have asked to speak to a supervisor for confirmation of what agent said, or maybe the person who wrote the FAQ re the GIC situation. But anyway, you are absolutely correct, the "law", terms of written contracts, always wins over FAQ and similar explanatory material or what someone has told you. (When I referred to specific over general info, I was kind of referring to a general rule for interpreting legislation, i.e. when a limited-application provision addresses a specific situation it usually prevails over a conflicting general provision that applies in general.)

I don't have this situation of a maturing GIC, doesn't affect me, but you're right to get it straight if it affects you.  

Thank-you for your input Bill.

I'm a cautious individual which is why I need everything in order so that there won't be any unpleasant surprises in April 2021.

Back when I was still playing Baseball I once stole 2nd base but the umpire called me out, I argued that I was safe. The team coach listened to what I said and calmly said to me, "It doesn't matter that you and the Umpire disagreed on the call. You put yourself in a situation where you could be called "out"".

I learnt from that to avoid putting myself in ambiguous situations (however when you're right, you're right). Cautious me says if Simplii can't get their terms & conditions straight (where they disagree with themselves), then I'm not accepting their offer, especially when there's options like Tangerine, EQ, Motive Financial etc.

Like a lot of folks on the site, I'm here to earn a safe return while minimizing risk.

October 9, 2020
9:13 pm
Canadianbull
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I open the savings account today. I called simplii for the promotional 2% rate. Where can I see the posted promotional interest rate? I can't find it.

October 10, 2020
8:14 am
Norman1
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Unfortunately, there is no indication on Simplii's online banking site.

One has to rely on the confirmation e-mail that says one has a 2% offer along with a link to the terms and conditions:

Confirmation: Your new interest rate is now in effect.

As requested, this email confirms you're now signed up for the Simplii Financial™ Savings Account offer. You'll earn 2.00% on eligible new deposits until March 31, 2021. …
______________________________________________

For Eligible Accounts opened before the Offer Period that have been enrolled in the offer, promotional interest is calculated as follows: a) for Eligible Savings Accounts, on the portion of the applicable account’s average daily closing balance during the Offer Period that exceeds the closing balance as at September 30, 2020 (the "Additional Balance") up to a maximum Additional Balance limit of $500,000 aggregated across all Eligible Savings Accounts; and b) for Eligible Registered Savings Accounts, on the Additional Balance in each individual Eligible Registered Savings Account up to a maximum Additional Balance of $500,000 per account.

For Eligible Accounts opened during the Offer Period, promotional interest is calculated as follows: a) for Eligible Savings Accounts, on the portion of the applicable account’s average daily closing balance from the date the account is opened to the end of the Offer Period (the "New Balance") up to a maximum balance limit of $500,000 aggregated across all Eligible Savings Accounts; and b) for Eligible Registered Savings Accounts, on the New Balance in each individual Eligible Registered Savings Account up to a maximum New Balance limit of $500,000 per account.

Promotional interest will be paid in April 2021 into a single Eligible Savings Account held by the primary account holder and separately into the applicable Eligible Registered Savings Account where it was earned.

October 10, 2020
3:31 pm
LK
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Hi all,

It should be noted that this offer is available to new customers who sign up for a Simplii HISA as of or after October 1, 2020. In that case, everything between account set up /deposit and March 31, 2021 would be "new money".

I called today to set up a new account. Got through to a CSA in about 5 minutes. The entire process took about a half hour. I could have done it online, yes, but opted to phone instead.

Here are some interesting tidbits that I learned while chatting with the CSA.

1. 2% promotional rate would not be impacted if the regular interest rate (currently 0.2%) goes down. The promotional rate is the difference between the regular HISA interest rate and the 2% promotional interest rate. But a drop in the regular interest rate would impact what is earned monthly on interest as opposed to being paid out at the end of the promotion period.

2. Get this: it was stated to me that the promotional interest will be paid "sometime in April", 2021. I specifically asked is that April 1 or April 29(ish). The CSA repeated "it will be sometime in April" and it may not be right on April 1. Hmmmm...

3. The CSA was trying to push adding a chequing account to my application "so that I could transfer money to the HISA account". I indicated that I did not want a chequing account and it took a bit of back and forth to get the CSA to admit that accounts with other FIs can be linked after the HISA account it set up.

4. They provided two options for identity check. SIN and credit bureau check OR go to Canada Post in person with government-issued photo ID. The second option seemed a bit bizarre to me.

5. I have to wait for my "welcome package" to arrive in the mail (about 7 business days), which will have my "card" with account number. I will then need to phone Simplii to activate my card and set up the online password. After I do that it may take another one to two business days.

6. A signature card will be emailed to me. CSA indicated that printing, signing, scanning to PDF and emailing back will be sufficient for that.

So, maybe by the end of October (!!), I will be all set up and earning 2% on what I deposit, with the promotional interest being paid "sometime in April". Depending on when in April, I may lose the benefit of a days to almost four weeks of compound interest on the interest, but of course can withdraw my initial deposits on April 1, 2021, and then withdraw the promotional interest later -- assuming of course that I'll find something paying more than around 0.2% or less, which will be the applicable interest rate on April 1.

October 10, 2020
3:42 pm
2of3aintbad
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LK said
...
2. Get this: it was stated to me that the promotional interest will be paid "sometime in April", 2021. I specifically asked is that April 1 or April 29(ish). The CSA repeated "it will be sometime in April" and it may not be right on April 1. Hmmmm...

This has always been the case with Simplii, which is unique for these promos. The interest is paid around the 15th, never near the 1st and never near the 29th. If it is better for you that the bonus interest is deferred into 2021, then that is worth more than a small loss from not compounding. On the other hand, if it is better for you to have the interest included in 2020, then you should look at the other alternatives.

October 10, 2020
3:47 pm
LK
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Thank you, 2of3aintbad.

Matters not to me regarding the interest being included in 2020 or 2021. Frankly, I'm happy to get 2%. My Tang 1.8% expires in early December, and I'll move money once the Simplii account is set up.

It was just a really new concept to me that promotional interest wouldn't be paid on the first of the month. Certainly does seem to be unique to Simplii as I haven't experience that with any other FI.

October 10, 2020
8:43 pm
MG
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LK said

I indicated that I did not want a chequing account  

Hello LK, How are you planning to deposit funds into your new HISA?

October 11, 2020
8:26 am
mustang
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I started opening a new account last Sunday. This seems to proceed in multiple steps. First they had to verify my identity. So, they emailed me a bar code, which I took to Canada Post. I also found this pretty unusual, but it worked well enough-- except for speed bump delay in my original info set up, which required them to send me a second bar code. That did arrive a day later, and I had a successful trip to Canada Post to get verified
The next step was for them to snail mail me a debit card. I thought my account should have been open by this point-- but, no dice-- I had to wait for the card
Which did in fact arrive 24 hours later. I called in, and got my accounts (I also opened a checking account since it is free, and I wasn't sure how I was going to fund the savings account-- still not sure, actually)
To link an external account, they require a piece of paper with external bank stamp on it-- which really complicates the issue for linking in an external digital account.
I did start up a linkage process, by specifying my TD account, and I snail mailed them a VOID check. So, now I have to wait until they get that, and process it.
I guess I could fund the account, by writing a check, and depositing it from a CIBC ATM. Not sure if that could go straight into the savings account, or has to be first deposited into the checking account, and then transferred to savings acocunt.
Not crazy about that who procedure-- have gotten completely out of the habit of writing checks

October 11, 2020
9:12 am
Norman1
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mustang said
… I guess I could fund the account, by writing a check, and depositing it from a CIBC ATM. Not sure if that could go straight into the savings account, or has to be first deposited into the checking account, and then transferred to savings acocunt.

I've deposited directly to a Simplii savings account at an CIBC ATM.

The Simplii HISA showed up as one of the "Other" accounts for the ATM card and not as the "Savings" account for the card.

October 11, 2020
9:18 am
Norman1
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LK said

It was just a really new concept to me that promotional interest wouldn't be paid on the first of the month. Certainly does seem to be unique to Simplii as I haven't experience that with any other FI.

Simplii calculates the bonus interest at the end of the promotional period. Mathematically, it docks bonus interest for any days the closing balance drops below the balance at the start of the promotion.

October 11, 2020
10:51 am
MG
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mustang said

I snail mailed them a VOID check. So, now I have to wait until they get that, and process it.
  

Hello Mustang,
I mailed my void check last Sunday (so only picked up from the mailbox on Monday) and it was linked when I checked my acount on Friday - so probably 4 days. Good luck!

October 11, 2020
10:53 am
mustang
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Thanks, much, normal1
That's very helpful info, re ATM deposit

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