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PC Financial 2.25% (June-August 2016) offer (to some)
June 4, 2016
3:28 pm
Norman1
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SlowPoke said

When I logged in I was offered 2.25 %

http://www.banking.pcfinancial.....un-en.html

Seems they may be playing the same rate game Tang played last time when rates offered to individuals varied up to 3%

Thanks for reporting that!

I was only offered 1.75%.

June 5, 2016
9:58 am
Norman1
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Other reports of the 2.25%-until-August-2016 offer on RedFlagDeals.com:

[PC Financial] 2.25% on new deposit to Saving account until August 31, 2016

Only a few people got the 2.25% offer. Most got the 1.75% offer.

One person who received the 1.75% offer called PC Financial to see if he/she could get the 2.25% offer. Unfortunately, not.

June 7, 2016
4:20 pm
dentgal
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I was one of the lucky ones on this go-round.

But they know that I have high funds and i pulled all my money out of PC when they only wanted to give me a good rate on NEW FUNDs--they didn't like my OLD FUNDS.
They are trying to entice me to give it back to them.
I don't know what Tanga will do come July 4th when my 2%promotion there ends!

June 7, 2016
6:17 pm
MarkFog
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Right now the lowest interest rate I have with all my on-line banks is Alterna at 1.95% and moving my money back to PC for 2.25% until August 31 is not worth it.

If during that time I have a bank move its rate substantially lower I may consider it.

June 8, 2016
10:08 am
bpwest
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I was offered 2.25% PC Financial June-August promo; my wife has not been offered any promotion on 'new deposits' yet... (My wife doesn't deal with Tangerine)

I began dealing with Tangerine Dec 2015, and my 6 month 2.4% ends late June...will have a conversation with Tangerine before my savings rate drops to regular interest of 0.80%

June 9, 2016
12:07 pm
Candy
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I am offered 1,75% and was told by the supertvisor .. they have a secret target of customer depends on their past promotion participation for 2.25% . Being a loyal customer for over 10 years and participated their promotion every time to the max $500,000! I am still being discriminated and offer me the lower rate 1.75% Just wonder what are they doing??? I just filed a complain to the Customer Care and see what they say... I used to work for CIBC before that kind of policy never happened before!!!!

June 9, 2016
2:36 pm
MarkFog
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Actually, if it wasn't for this forum we wouldn't even know that PC has been playing favourites. I can understand if someone gets a better rate when dropping in person to haggle. But, to what is the reasoning behind the tactics of these on-line banks is really strange since its random.

June 9, 2016
6:53 pm
Bill
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Being random is an awesome tactic, I have to respect such an "adversary".
And I bet almost all their customers have no clue about the stuff we talk about here, just keep their money there and accept a promo as a nice, unexpected bonus, so PC's likely not too concerned about the few avid rate chasers who move their money around constantly even if you do give them a good promo rate for a few months.

June 9, 2016
8:36 pm
penniesfromheaven
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They would not up my rate from 1.75% even with an offer to move significant bucks over. From the rep's explanation for this, it sounds like PC Financial tracks previous promos that I've participated in, and whether those funds stayed in my account beyond the promo period (they were transferred). Sorry PC, not asleep at the wheel..

I'll keep my bucks at Meridian, EQ, and Tangerine for now.

June 9, 2016
8:46 pm
Loonie
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I don't think it's random at all. I think there's a sophisticated computer programme behind it which weighs a number of factors. It might include things like age, net worth, credit rating, whether you have their credit card and how much you charge on it, how much you shop at their stores, whether you have RSP or TFSA with them, GICs, whether your deposits in various accounts are growing, whether they hold your mortgage, etc etc. They will be tweaking it over time to see what results in more business for them.

However, the consumer experiences it as arbitrary. In other words, we have no idea what to expect or what to do in order to get a better rate.

June 9, 2016
10:00 pm
Norman1
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penniesfromheaven said

They would not up my rate from 1.75% even with an offer to move significant bucks over. From the rep's explanation for this, it sounds like PC Financial tracks previous promos that I've participated in, and whether those funds stayed in my account beyond the promo period (they were transferred). Sorry PC, not asleep at the wheel..

That would make sense: The extra ½% (from 1.75% to 2.25%) is a little thank you from PC Financial to those who left their money with them after the previous promos ended and the rate went back down to 0.8%.

June 10, 2016
4:32 am
Loonie
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It might make sense, but what is going on is more complicated than the CS is privileged to know. CS reps are giving varying and inconclusive answers because they don't really know the ins and outs of it. They may know partial answers. They may even make them up!- anything to get us to stop asking.

Dentgal pulled her substantial bucks out when they refused her a previous promo, but now she is getting this one.

I can't imagine a bank offering a thank you in the form of an interest rate hike for several months. It's simply strategic marketing. We just don't know what the strategy is exactly, and you can be sure that nobody is going to tell us. That would spoil their game. I am sure though that they know that Bank B is paying 2.25% and Bank C is paying 1.95 etc. and that 1.75 is still a good rate compared to most.

I doubt that they are ever going to offer the same people the top rate on a consistent basis. They may come reasonably close, but there is no reason they would do this unless deposits became very scarce indeed.

June 10, 2016
6:03 am
Bill
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I agree, it only appears random to us, in fact easily tracking our ever-growing trail of financial transactions along with all the other info they have about us makes it likely the bank's programs know pretty much how we're going to respond to any stimulus before even we do. The programs get increasingly accurate as the data pile grows and if things go right the bank is able to keep happy the customer base it's after. The other factor is that banks will have desired levels or caps on the various elements of their portfolio - they need a certain amount of liquid deposits at a certain rate, some at another rate, some in GICs, certain mortgage amounts at various rates and terms, so depending on where they want money to flow at any moment the program will adjust on the fly. Bottom line: it's constant change now, we can move our money in a moment, banks adjust and act at the same speed, so good luck to the human brains trying to predict the next move!

June 10, 2016
8:48 pm
Schrodinger's Ape
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I was offered 1.75, my mom got 2.25. I moved all her money to Tangerine several months ago, and I guess they're trying to get it back; whereas I've been putting my own money directly into Tangerine and making regular top-ups to my "transitional" savings account at PCF, but the majority of our new savings have been going into investments.

All in all, I'm pretty much done with the merry-go-round of savings accounts and the games these banks play. For the $40 difference in interest on the $5,000 we keep in cash savings for half of our emergency funds (the other half being in chequing at TD to keep the All-Inclusive account fee-free), it's not worth the hassle of moving it all the time. The rest gets invested because it just makes more sense (I'm young enough to recover if the market turns south, and my husband while older, has a fixed benefit pension to look forward to).

June 10, 2016
9:17 pm
Norman1
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Loonie said

It might make sense, but what is going on is more complicated than the CS is privileged to know. CS reps are giving varying and inconclusive answers because they don't really know the ins and outs of it. They may know partial answers. ….

Dentgal pulled her substantial bucks out when they refused her a previous promo, but now she is getting this one.

I can't imagine a bank offering a thank you in the form of an interest rate hike for several months. It's simply strategic marketing. We just don't know what the strategy is exactly, and you can be sure that nobody is going to tell us. That would spoil their game. I am sure though that they know that Bank B is paying 2.25% and Bank C is paying 1.95 etc. and that 1.75 is still a good rate compared to most.

Banks have given tokens of appreciation in many forms. Waived annual fees on premium credit cards. Bonus on deposit rates. Reduced rate on loans.

The ½% bonus as a thank you may not be the only reason they have. Some of the bonuses could also be allocated to wooing some people back, like Schrodinger's Ape's Mom and Dentgal.

I agree. PC Financial/CIBC likely knows about EQ Bank's 2.25% and Alterna Bank's 1.95%.

PC Financial/CIBC also know that they don't need to pay 1.75% or 2.25% for short-term money. Current rate for 90-day Bankers' Acceptances is 0.83% per annum. If needed, CIBC can just issue BA's at 0.83%.

June 11, 2016
12:09 am
Loonie
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If it could all be covered by BA (a form about which I know nothing), then clearly they would do that and dispense with us entirely since, in the end, it's all about the money. But they do need to keep a certain amount of other people's money on deposit to be viable.

I do realize banks give certain perqs from time to time. It's the concept of "thanks" that bothers me. It's a strategic calculated move in my books. And if it's true, then TD owes me an avalanche of freebies and an interest rate of 5% to atone for past sins.

June 11, 2016
12:38 am
Schrodinger's Ape
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Loonie said It's a strategic calculated move in my books.

Wait... surely you're not suggesting that banks are cold, calculating entities, and not compassionate organisations who care deeply for our personal well-being??

;)

June 11, 2016
9:26 pm
Norman1
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Loonie said

If it could all be covered by BA (a form about which I know nothing), then clearly they would do that and dispense with us entirely since, in the end, it's all about the money. But they do need to keep a certain amount of other people's money on deposit to be viable.

I'm sure it all could be covered by issuing Bankers' Acceptances at $100,000 a shot.

One can see how enthusiastic CIBC is for uncommitted short-term money by looking at their short-term deposit rates. The current rate for a 90-day redeemable GIC is 0.05%. Current rate for a 90-day non-redeemable GIC is 0.25%.

I do realize banks give certain perqs from time to time. It's the concept of "thanks" that bothers me. It's a strategic calculated move in my books. And if it's true, then TD owes me an avalanche of freebies and an interest rate of 5% to atone for past sins.

The banks will say thanks but never atone completely.sf-frown The friend, who was given the complimentary TD Visa Infinite credit card, pays thousands of dollars each year in interest on a mortgage and line of credit. That grateful TD Canada Trust branch is saying thanks by covering the $120/year fee on the credit card.

I think it depends on the manager of the branch. I don't think all branches will do it without the customer demanding it. My friend didn't even know the card was normally $120/year until years later when he suggested that I apply for it too.

June 12, 2016
2:17 pm
Loonie
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It sounds more like "thanks" with the secret handshake.. I would call it an investment in hanging on to a customer. It's way cheaper to keep an old customer off of whom you are already making a good profit than it is to acquire a new one. It's all about the money, and that is no surprise.

June 12, 2016
6:17 pm
dentgal
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As Loonie correctly pointed out, they do not give a "thank you" for keeping your money with them. They usually only give "bonus" interest on NEW funds. You're screwed on your existing funds that you have with them.
Generally, I keep moving money from PC and over to Tanga and then back to PC when the 3 month promotion ends. Once or twice this scheme didn't work as I wasn't offered the promotion.
I don't have a Tanga or PC credit card--i prefer airline points for my credit cards--and i don't have mortgages or other things with these banks so I do not think that the rate offered is tied to these loyalties.
I think just like EQ and Zag, they offer high interest to entice you to move your money to them---sucker you in, if you will!. Then they hope that you will either forget that the rate dropped, or be too lazy to move it at the end of the promotion. I know that everyone on this website would never knowingly keep their money at a low interest bank, but i think that most people just don't pay attention and they get huge influxes of cash this way!!
However I do agree that their computers know your history and how much cash you have given them in the past---and particularly if it is large amount, they want it back--hence the higher offers to some!!!
Schroedinger, I definitely agree that if you have $5000 to invest, you are simply not talking about enough interest to be bothered constantly moving your money.
For every $100,000 we have to invest, an additional 1% interest=$1000 per year. I guess we all have our "magic" number of how much additional interest do we need to get to make it "worth our while" to continue with the dance!
I have locked quite a bit into ZAG and Oaken for 2 years--for the same reason--I don't want to be bothered constantly moving things--and i'm comfortable that rates won't increase sooo much in the 2 years. (i might be wrong!!). But i still have enough cash hanging around that i need to keep my dancing shoes on!
p.s. I called Tanga to see if they would match the 2.25% rate from PC. They wouldn't commit and said "just wait the few weeks and we will have some news, but i can't guarantee that we will match the rate from PC". (my 2%at Tanga ends July 4th) oyyyyyy

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