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5.25% HISA rate has arrived at Simplii
July 4, 2023
6:07 am
KamWest
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Screenshot-80.png

You have to have a million plus but the 5.25% HISA rate cannot be beat. It's the best of both worlds, a high interest rate rivaling GIC's and you don't have to tie up your funds in a term.

I wonder how long that rate will last?

July 4, 2023
7:12 am
RetirEd
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But wait - is this tiered in the way that you must keep your first megabuck in a lousy .04%-to-1% account? That would be an ugh.
RetirEd

RetirEd

July 4, 2023
7:16 am
KamWest
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I checked via chat already

The entire amount is at 5.25% but you must keep 1 penny over a million in the account.

So if you have two million in the account the entire two million gets 5.25%

Notice at the top it says "if your account balance is"

July 4, 2023
7:18 am
KamWest
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Another side note:

CIBC does not offer this rate, it is for online Simplii accounts only.

July 4, 2023
7:25 am
mordko
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Very few people would want to do this. Its a lot of money to keep in cash with negative real after tax return and a good chance of rate dropping soon.

And of course its waaay above CDIC.

July 4, 2023
8:20 am
KamWest
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Agreed @mordko but there are a few reasons why this could come in handy...

1. You are looking to buy a property and need a place to keep the funds without tying them up.

2. You have a business that requires a lot of cash on hand. Technically that means you need to transfer to another bank and back when the funds are needed.

3. You have a large quarterly payment (like hst) and need to store the funds and still make high interest.

4. So basically any reason where you need funds available yet you still want high interest.

July 4, 2023
8:27 am
canadian.100
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This is a very good rate - but Simplii (CIBC) is obviously targetting affluent customers - an easy way/smart strategy to attract funds quickly and easily - and even if above CDIC, CIBC is a very solid FI.
Simplii likely does not attract very much funds from the "small potato" customers.

July 4, 2023
8:34 am
mordko
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KamWest said
Agreed @mordko but there are a few reasons why this could come in handy...

1. You are looking to buy a property and need a place to keep the funds without tying them up.

2. You have a business that requires a lot of cash on hand. Technically that means you need to transfer to another bank and back when the funds are needed.

3. You have a large quarterly payment (like hst) and need to store the funds and still make high interest.

4. So basically any reason where you need funds available yet you still want high interest.  

I would have thought businesses with over $1M in HST use business accounts but certainly a good option for someone waiting to buy a house,

July 4, 2023
8:45 am
KamWest
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mordko said

I would have thought businesses with over $1M in HST use business accounts

Highest interest bearing business account (which I have) I was able to find is Meridian at 2.75%

To give you an idea....

If you keep 1 million in that business account the Simplii account at 5.25% will pay an extra $25,000 annual interest compared to the 2.75% at Meridian.

Most business account pay no interest at all and interest for every million is $52500.00 annually if you move the funds to this Simplii account.

Well worth the hassle to move the funds, especially if you only use them quarterly for bonuses, hst etc.

July 4, 2023
10:35 am
COIN
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Can I assume the million dollar offer is available to every client or does one have to be "targeted"?

July 4, 2023
10:48 am
KamWest
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COIN said
Can I assume the million dollar offer is available to every client or does one have to be "targeted"?  

Available to anyone, but I guess it's technically targeted to a group willing to deposit a million plus so I don't think they will get a ton of people using it.

July 5, 2023
5:34 am
savemoresaveoften
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KamWest said

Available to anyone, but I guess it's technically targeted to a group willing to deposit a million plus so I don't think they will get a ton of people using it.  

yeah thats what i am thinking. they seem to be doing something similar to HSBC Canada, which offers high rates with their target being affluent Asian customers in general.

July 5, 2023
5:56 am
mordko
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savemoresaveoften said

yeah thats what i am thinking. they seem to be doing something similar to HSBC Canada, which offers high rates with their target being affluent Asian customers in general.  

“Asian”? How exactly do they target Asian customers?

July 5, 2023
1:11 pm
Bill
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Not sure how HSBC targets but there are a number of ways some banks target Asian customers. For example, Wealth One on its site indicates they offer services in English, Mandarin and Cantonese (no French, I guess).

They also have a page dedicated to newcomers:
https://www.wealthonebankofcanada.com/Learn/New+to+Canada

That one and several other of their web pages portray Asians, and they only have 3 branches, all in areas with high Asian populations.

I've seen some of the big banks offer services in Mandarin and/or Cantonese as well, fro various services including investments, can't remember which ones right now. I'm sure there are lots of other ways various banks target Asian-origin customers.

July 5, 2023
2:08 pm
mordko
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Bill said
Not sure how HSBC targets but there are a number of ways some banks target Asian customers. For example, Wealth One on its site indicates they offer services in English, Mandarin and Cantonese (no French, I guess).

They also have a page dedicated to newcomers:
https://www.wealthonebankofcanada.com/Learn/New+to+Canada

That one and several other of their web pages portray Asians, and they only have 3 branches, all in areas with high Asian populations.

I've seen some of the big banks offer services in Mandarin and/or Cantonese as well, fro various services including investments, can't remember which ones right now. I'm sure there are lots of other ways various banks target Asian-origin customers.  

HSBC “targeted” us because we came from the U.K. and they had our banking history. They treated us way better than the big 5, e.g by providing the “status” right away and a credit card with a decent limit. Big 5 wanted us to give them a deposit to cover the credit limit.

They always offer services in French and Mandarine.

August 12, 2023
3:51 pm
leigh
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Right now, Simplii are offering 6% pa for five months on new HISAs, no minimum amount. Regular interest on their HISA is abysmal.

I don't know if that's only for new clients or if it includes existing clients who open a HISA account.

https://www.simplii.com/en/special-offers/no-fee-chequing-account.html?utrc=S226:107&&gad=1&gclsrc=ds&gclsrc=ds

August 12, 2023
4:54 pm
julio
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† The Simplii Financial™ High Interest Savings Account Promotional Interest Rate Offer for New Simplii Clients (the “HISA Offer”) is available between August 1, 2023 and October 31, 2023 (the “Offer Period”)...

August 12, 2023
5:56 pm
KamWest
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The 5.5% rate they currently have is the best one going and the customer service rep there told me it will soon be raised to 6% for substantial deposits.

So my Hubert funds are going to Simplii with no more worrying about quarterly or yearly terms.

Customer service rep says the rate is there to stay and they mean to get quite competitive in the upper end market.

So for 6% no strings they have me again after a long hiatus of moving money from one institution to the next.

August 12, 2023
6:22 pm
suburbs4life
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Did they say what is a substantial sum? 100k or more like 1 mill plus?

August 12, 2023
10:58 pm
moveyourmoney
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suburbs4life said
Did they say what is a substantial sum? 100k or more like 1 mill plus?  

You need $1,000,000.01 to get their posted 5.5% rate. Drop it by a penny and you’re down to 1.25%. ($500,000.01-1,000,000.00) Joke.
I’ve dealt with Simplii for a long time. Although their targeted 6% hisa promo is attractive, I would never give them a mil. You could walk into a big bank and they would do something competitive for a mil. And you could go to sleep at night knowing your money is about as safe as it could be when going outside of cdic coverage. Simplii hasn’t figured out that they need to attract 10 investors with $100k instead of trying to hit the home run with million dollar investors. It’s not going to work for them. The 6% will attract some short term investors/investment and gone again when it’s done. Their base rates are just not competitive. It’s not like the old days with bricks and mortar, everyone is linking online accounts…so when rates are no good…with just a few clicks, you can “move your money”.

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