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Monthly interest is from last day of previous month to 2nd last day of month
December 2, 2017
11:11 am
Norman1
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GR said

Simplii pays and posts interest on the last day of each month, calculated until the second to last day of each month. Interest at month-end December should be for November 30th to December 30th, inclusive. This method is somewhat unusual, but follows how PC Financial calculated monthly interest.

rfdm4g4g9 said

Thanks that explains my 1 day missing interest for Nov. 30 which I never got on Dec 1 or Nov 30

sf-surprised Wow ! That's a weird way of calculating interest for the month.

So instead of paying interest from Dec 1 to Dec 31 on Dec 31 , they will pay Nov 30 to Dec 30 interest on Dec 31.

Maybe that's why I didn't get the Nov 30 - 1 day interest in my account either on Nov 30 or Dec 1.

So I guess I will get my Nov 30 - 1 day interest on December 31.sf-smile

Just causing unnecessary confusion with this odd method of interest calculation, where 1 day from the previous month and 1 day less from the current month is used to calculate interest at the end of the month.

Is it somewhere in their T & C , that's how they calculate & pay out the monthly interest ?

Thanks, GR. That insight deserves its own thread/topic. sf-smile

December 2, 2017
5:03 pm
Bill
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GR, that's interesting what you say - how did you discover this? I've poked around the Simplii site a bit and found no reference to this.

And I notice (at least some) other fi's show monthly interest posted on the last day of the month; for example, Tangerine posts regular interest on the last day of the month and promo interest on the following day. Could some of them be doing the same?

December 2, 2017
10:28 pm
GR
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Bill,
I recall getting that explanation from a PC Financial rep by phone when I discovered a discrepancy in the interest calculation quite some time ago. I invite any member to phone them to verify.

December 3, 2017
1:15 pm
Norman1
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I did the interest calculation for my Simplii HISA account. Interest paid at the end of November is 1% per annum on what GR described: the closing balances from October 31 to November 29. Interest paid was definitely not on the closing balances of November 1 to November 30.

The difference in interest is quite clear when the closing balances on the last day of the months are significantly different.

I did the same for my Alterna Bank eSavings account. Interest paid at the end of November was 1.9% per annum of the closing balances of November 1 to November 30.

December 8, 2017
1:37 am
rfdm4g4g9
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GR said
Bill,
I recall getting that explanation from a PC Financial rep by phone when I discovered a discrepancy in the interest calculation quite some time ago. I invite any member to phone them to verify.  

Simplii should have this somewhere on their website . They have caused lot of confusion because of this. If not for you very few people would have known.

Unnecessarily they are doing things in a confusing manner. Like paying the bonus interest in March etc etc. Just pay 1 % + 2 % at the end of the month just like Tangerine.sf-laugh

December 8, 2017
6:47 pm
Norman1
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rfdm4g4g9 said

Simplii should have this somewhere on their website . They have caused lot of confusion because of this. If not for you very few people would have known.

It really only affects those of us who try to verify the interest calculated. The interest is still calculated daily and credited monthly.

It does reduce the amount of peak computer processing power CIBC needs. CIBC can schedule the interest calculations for the Simplii HISA accounts one night early and not add to the month-end load the night of the last day of the month.

Unnecessarily they are doing things in a confusing manner. Like paying the bonus interest in March etc etc. Just pay 1 % + 2 % at the end of the month just like Tangerine.sf-laugh  

But, then Simplii wouldn't be able to "take back" some of the 2% promo interest should someone withdraw any of the existing money in the account.

December 10, 2017
6:25 am
Bill
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Norman1, there are people out there who verify monthly interest calculations on their savings accounts!!??sf-surprisedsf-wink

December 10, 2017
6:41 am
Top It Up
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ACTUALLY ... I never have ... should I?

December 10, 2017
9:14 am
Norman1
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It is good to spot check once in a while.

I usually check the monthly interest during the first few months after I open a new account to see if there is anything unusual.

I check the bonus offer interest more often.

A while back, Loonie checked and found Tangerine's bonus interest was off by 50%! It turned out Loonie was on a slightly different offer than most of us.

jaybee checked and found the bonus interest was not as expected. Turned out to be a joint account that pushed the qualifying balances about the $500,000 limit of the offer!

December 10, 2017
11:37 am
Bill
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Norman1, the two examples you provided showed the fi's were doing it right after all. Have you (or anyone here, for that matter) had experiences that make you conclude it's a good idea to spot check? I've been assuming all along that's not something I need to even think about.

December 10, 2017
1:00 pm
James
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Bill said
Norman1, the two examples you provided showed the fi's were doing it right after all. Have you (or anyone here, for that matter) had experiences that make you conclude it's a good idea to spot check? I've been assuming all along that's not something I need to even think about.  

I have actually on a few occasions not received any interest at all from a financial institution. While the interest was normally paid on the last of the month, in this instance, several days had gone by and no interest was paid. After inquiring I was told they were behind on interest payments and I eventually did receive the interest (with the compounding) the following week. Maybe I still would have received the interest if I didn't email them but since there was no notice prior, I do wonder if that would have been the case.

Most recently, a financial institution closed my account after I moved all funds out and did not pay me the interest owed for the few weeks prior to closure. (I haven't decided if I'm going to pursue this further as the interest amount was limited.)

In any case, definitely good to check as Norman says.

December 10, 2017
2:19 pm
Loonie
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It's good to check if only because you might learn something about your account that you might have missed, and that will help you in the future. However, I rarely do it.

About 20 years ago, my father discovered an error in interest in an account of his. He had to argue with them but they eventually paid him. It wasn't a large amount. It was one of the BigFive but I forget which.

December 10, 2017
3:49 pm
Bill
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If no interest is paid when it should be then that's easily noticed, I'm pretty sure we're going to pick that up. But I see no reason to actually check an fi's monthly interest calculation - particularly only every now and then on a spot basis, as there is almost zero chance you will randomly select the exact calculation that an fi happened for once to do incorrectly. Unless, of course, it's a hobby or a compulsion - in that case fire away and let us know if you find anything!

December 11, 2017
6:10 pm
Norman1
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There was a problem with Zag Bank two years ago.

The savings account interest credited for the month of November 2015 was incorrect.

January 1, 2018
9:26 pm
rfdm4g4g9
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I noticed my Interest paid for December shows a paid out date of December 29.
Does that mean the interest was only calculated & paid till December 29 ?

Or they are only posting that date because Dec 30 ( Saturday ) & Dec 31 ( Sun ) were holidays ?

So maybe they have calculated the Dec 30 & Dec 31 interest also, but because those days were bank holidays they are just posting the entry date as Dec 29 for showing the interest paid out ??

January 1, 2018
10:06 pm
Loonie
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Some FIs do post on the last banking day if end of month on a non-banking day but give you full interest. They just find it easier for their bookkeeping, I think. I can't speak for this one though.

January 3, 2018
4:37 pm
Save2Retire@55
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I was suspicious about the interest they were paying me and I just doubled check. I can confirm they are only paying me 1% interest rate on all my new deposits. For some unknown reasons, I am not getting the promotional 3%. Going to call them now and see what they say.

January 3, 2018
5:55 pm
Norman1
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Save2Retire@55 said
I was suspicious about the interest they were paying me and I just doubled check. I can confirm they are only paying me 1% interest rate on all my new deposits. For some unknown reasons, I am not getting the promotional 3%. Going to call them now and see what they say.  

Situation is the same here. That's expected. According to the offer terms, the rest of the 3% per annum interest, the Promotional Interest, will be paid out as one lump sum in March.

January 3, 2018
8:28 pm
Save2Retire@55
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Situation is the same here. That's expected. According to the offer terms, the rest of the 3% per annum interest, the Promotional Interest, will be paid out as one lump sum in March.

Thanks Norman. I actually waited 1 hour on phone but couldn't get to talk to anyone. I have no idea why they are doing it this way. So confusing!

March 3, 2018
6:46 pm
rfdm4g4g9
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Don't forget this, when you see your monthly regular interest. 1 day ( last day ) will be in next month's interest.

Also the bonus interest usually comes in 1 lump sum in the second week of the month after the promotion gets over.

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