December 12, 2009
That's the way I read it as well, Selby, and it's a point raised by others on this forum. Given the relatively high threshold and the fact the no-fee bank account has a tiered interest schedule, I would wager they've (a) simply not bothered to update the rate knowing few of their customers keep money in their chequing account or (b) now that interest rates are so low, they've decided to keep the chequing account rate where it is given the high threshold and reward customer loyalty to those keeping large balances with PC Financial.
That said, it could and likely will be lowered soon. 🙂
I have both as well and there is no fee in moving the month between the accounts, just 1 day time delay is required from Savings to Checking.
There would be a "break point" of how much you need to have in the checking vs the saving account to make more at the interest rates. Maybe someone can do it here?
December 18, 2008
From what I understand is you only get 2% on the amount above 25k...so if you have 26k in there...only 1k is earning 2% and the other 24,999 is earning the other rate of like .50
no fee bank account
on the portion of
balance between: annual interest rate (%)
$0.00 - $1,000.00 0.10
$1,000.01 - $5,000.00 0.15
$5,000.01 - $10,000.00 0.25
$10,000.01 - $25,000.00 0.50
$25,000.01 and up 2.00
If my math is correct, the break-even point is $73,727. So if you have more than $73,727, go with the chequings, otherwise go with the savings. With the former, you do get the advantages of a chequings account so that's something to consider. Also, I doubt both rates will remain constant for any significant period of time.
January 30, 2009
Excellent points and info SG and Jason.
To complicate things further, there is also the 'anniversary bonus' to consider. So if you have been a PC customer for more than 3 years, you may want to consider leaving the funds in the 'interest plus' account to ensure the required average balance (as Doug said, assuming PC will eventually even out these rates).
(ie. if you moved all of your funds to the chequing account, for a few months, you would drop your average yearly balance which might cost you a few hundred dollars if you are moving large sums of money)
Also recall that there is a limit of 50,000 per transfer at PC financial.