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PC Financial launches 3.1% "new net deposit" promo
September 9, 2014
3:04 pm
George
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PC Financial just answered the Tangerine offer: http://www.banking.pcfinancial.....mo-en.html

Earn 3.1% interest* until December 15, 2014 on all new deposits made before September 30th into any of these accounts:

Interest Plus™ savings account
No fee bank account
Interest Plus™ RRSP
Tax-Free Interest Plus™ savings account
So don’t just save, save up with an account that’ll help you reach your financial goals faster.

Call 1 866 674 5616 to enrol today.

*How it works:

3.1% Non Registered Rate Promo Offer Terms and Conditions (September 6, 2014 – December 15, 2014)

1. The President’s Choice Financial® promotional interest offer (the “Offer”) is available to all Eligible Accounts between September 6, 2014 and December 15, 2014 (the “Offer Period”). “Eligible Account” means an existing President’s Choice Financial no fee bank account, Interest Plus™ savings account and/or Interest First® savings account and any President’s Choice Financial no fee bank account, and/or Interest Plus savings account that is opened during the Enrolment Period (as defined below). Only primary account holders are eligible for the Offer. The Offer applies to Eligible Accounts only; it does not apply to registered accounts or other banking products.

2. To participate in the Offer, an Eligible Account holder must enroll or accept the Offer between September 6 2014 and September 30 2014 (the “Enrolment Period”) by accepting the online banking invitation, calling 1 888-723-8881 or visiting an in-store President’s Choice Financial pavilion or hub to speak with a customer service representative.

3. The special annual interest rate of 3.1% is a combination of the regular annual interest rate set by President’s Choice Financial payable on an Eligible Account balance, plus promotional interest (“Promotional Interest”) that is calculated during the Offer Period.

4. The Offer applies to all net new deposits made during the Enrolment Period to Eligible Accounts, not to exceed the lesser of (i) $250,000 in the aggregate, across all of an account holder’s Eligible Accounts; and (ii) the aggregate net new deposits to Eligible Accounts made during the Enrolment Period, and is calculated based on the portion of the Eligible Account’s average daily closing balance during the Offer Period that exceeds the closing balance as at September 5, 2014 (the “Additional Balance”). The daily closing balance in any Eligible Account opened during the Enrolment Period will be deemed to be $0.00 until the date a deposit is made in the Eligible Account. If an Eligible Account is overdrawn as at September 5, 2014, the September 5, 2014 closing balance is deemed to be $0.00. Promotional Interest will not be paid on funds that are transferred from an existing Eligible Account to another existing or new Eligible Account.

5. The Promotional Interest will be paid in December 2014 into a single Eligible Account held by a primary account holder. Promotional Interest will not be paid unless at least one of the primary account holder’s Eligible Accounts is active and in good standing as at December 15, 2014. If a primary account holder holds more than one Eligible Account, Promotional Interest will be paid to an Eligible Account in the following priority sequence:

a. to the primary account holder’s Interest Plus savings account, if it is active and in good standing; otherwise
b. to the primary account holder’s Interest First savings account, if it is active and in good standing; otherwise
c. to the primary account holder’s no fee bank account, if it is active and in good standing.

Eligible Accounts will continue to earn Regular Interest on balances, calculated daily and paid monthly.

6. Offer is non-transferable and cannot be combined with other promotional rate offers. The provider of President’s Choice Financial personal banking services (the direct banking division of CIBC), reserves the right to cancel or change the terms of the Offer at any time, and revoke the Offer for any customer who appears to be manipulating or abusing the Offer, or is engaged in any suspicious/fraudulent activity.

7. PLEASE NOTE: Promotional Interest as well as Regular Interest are subject to change at any time; visit http://www.banking.pcfinancial.....es-en.html for current regular rates or speak to a President’s Choice Financial personal banking representative for current rates. Promotional Interest recipient is solely responsible for any tax consequences associated with the Promotional Interest
3.1% Registered Rate Promo Offer Terms and Conditions (September 6, 2014 – December 15, 2014)

The President’s Choice Financial promotional interest offer (the ���Offer”) is available to all Eligible Accounts between September 6, 2014 and December 15, 2014 (the “Offer Period”). “Eligible Account” means an existing President’s Choice Financial® The World’s Best Registered Retirement Savings Plan (RRSP), Interest PlusTM RRSP and/or Tax Free Interest Plus savings account, and any new President’s Choice Financial The World’s Best RRSP, Interest Plus RRSP and /or Tax Free Interest Plus savings account that is opened during the Enrolment Period (as defined below).

1. To participate in the Offer, an Eligible Account holder must enroll or accept the Offer between September 6, 2014 and September 30, 2014 (the “Enrolment Period”) by accepting the online banking invitation, calling 1 888-723-8881 or visiting an in-store President’s Choice Financial pavilion or hub to speak with a customer service representative.

2. The special annual interest rate of 3.1% is a combination of the regular annual interest rate set by President’s Choice Financial payable on an Eligible Account balance, plus promotional interest (“Promotional Interest”) that is calculated during the Offer Period.

3. The Offer applies to all net new deposits made during the Enrolment Period to Eligible Accounts, not to exceed the lesser of (i) $250,000 in the aggregate, across all of an account holder’s Eligible Accounts; and (ii) the aggregate net new deposits to Eligible Accounts made during the Enrolment Period between September 6, 2014 and September 30, 2014, and is calculated based on the portion of the Eligible Account’s average daily closing balance during the Offer Period that exceeds the closing balance as at September 5, 2014 (the “Additional Balance”). The daily closing balance in any Eligible Account opened during the Enrolment Period will be deemed to be $0.00 until the date a deposit is made in the Eligible Account. If an Eligible Account is overdrawn as at September 5, 2014, the September 5, 2014 closing balance is deemed to be $0.00. Promotional Interest will not be paid on funds that are transferred from an existing Eligible Account to another existing or new Eligible Account.

4. The Promotional Interest will be paid in December 2014 to the account holder’s Eligible Account(s). If an account holder has multiple Eligible Accounts, the Promotional Interest for each Eligible Account will be paid separately into that Eligible Account. Promotional Interest will not be paid into any Eligible Account that is not active and in good standing as at December 15, 2014. Eligible Accounts will continue to earn Regular Interest on balances, calculated daily and paid monthly.

5. Offer is non-transferable and cannot be combined with other promotional rate offers. The provider of President’s Choice Financial personal banking services (the direct banking division of CIBC), reserves the right to cancel or change the terms of the Offer at any time, and revoke the Offer for any customer who appears to be manipulating or abusing the Offer, or is engaged in any suspicious/fraudulent activity.

6. Promotional Interest as well as Regular Interest are subject to change at any time; visit http://www.banking.pcfinancial.....es-en.html for current regular rates or speak to a President’s Choice Financial personal banking representative for current rates of registered Eligible Account investments: The World’s Best RRSP, Interest Plus RRSP and/or Tax Free Interest Plus savings account.

7. Additional terms, conditions and limitations apply to opening and making deposits in an Eligible Account. Individuals must meet the criteria of President’s Choice Financial to open or hold an Eligible Account in order to qualify for the Offer. Promotional Interest recipient is solely responsible for any tax consequences associated with the Promotional Interest. The Promotional Interest cannot be substituted or transferred to a third party. Details are available upon request.

®/™PC, President’s Choice, PC Financial, President’s Choice Financial, and Interest Plus are trademarks of Loblaws Inc. Trademarks used under license. CIBC a licensee of the marks.

President’s Choice Financial personal banking services are provided by the direct banking division of CIBC.

September 9, 2014
3:31 pm
james1900
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Thanks!

September 9, 2014
7:14 pm
Loonie
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What a circus this is getting to be!

And now, for the next move in the chess game, all eyes turn to...

Tangerine?

Do I hear 3.2? Anyone? Going...going... 3.15?sf-laugh

NOTE TO BANKS: What we want is best rates for at least one year.

September 9, 2014
7:49 pm
Loonie
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Reading the fine print above...

In spite of the (miniscule) improvement in interest rate, I prefer the Tangerine offer. PCF will not pay the bonus portion of the rate until sometime in December after the 15th, date unspecified, whereas Tang pays it on the 1st of each month. Also, you have to keep the account open until at least Dec 15, and then wait for the bonus, which may not come until the end of the month. In effect, you will need to leave all the money in the account until Dec 15, as the bonus is based on the average on deposit during the promo period. It appears that PCF has put a per person limit of eligible deposits at $250,000, whereas Tang has the same limit per account type.

Also, I would be careful in regards to the sentence which starts "to participate in the Offer...". It specifies 3 methods: going through the website offer (which appears to mean making a phone call, as there is no link to sign up for the promo online), going to a PCF pavilion, and talking to a rep on the phone. It does NOT say that if you simply transfer the money and don't do any of the above that you will get the bonus. In other words, it appears that you have to talk to someone at PCF personally.

Both Tang and PCF permit themselves to change the deal later if they wish, but I'm sure that would only happen if there was a major shift in the overall banking situation.
Neither Tang nor PCF are offering monthly compounding on this offer. Tang even says that they will not compound the basic rate during the promo (#12 in Tang's T&C). So you might want to consider taking out your interest every month and putting it somewhere else - just to make a point!

September 9, 2014
8:55 pm
Jack Manning
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Loonie, they are treating all of us like children. If this competition gets too out of hand they maybe able to form some type of agreement to either buy out each in some form or some other trick up their sleeves which they are better at doing.

I remember when ING Direct had a 3.00% TFSA savings account which I believe was for 90 days but I can't recall for sure and eventually it dropped to 1.40%.

The way I see it. They want variable rate money and not fixed rate money so they can keep rates lower for longer. If you have money that you are not going to invest for a long time period then I guess the new job is to transfer money around.

September 9, 2014
9:23 pm
Jack Manning
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Loonie, we were at Duca C.U. yesterday on our lunch break and we topped up our 2 daughters RESP's by $2,500 each, $5,000 combined to get the full CESG benefit.

This was a non-registered GIC that matured for $10,000 and we just reinvested it in a 3.00%, 7 year non-registered GIC and 3.00%, 7 year RESP GIC's. The combined $2,298.74 interest is okay for what is out there right now.

I don't know if you remember but it is hard to find RESP GIC's from most financial institutions at 3.00% rates and even at lower rates.

September 9, 2014
9:30 pm
Rick
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Jack Manning said

I remember when ING Direct had a 3.00% TFSA savings account which I believe was for 90 days but I can't recall for sure and eventually it dropped to 1.40%.

Which is why I don't use ING for my TFSA or chase TFSA rates (still can't beat PT anyway). Unless you have enough contribution room to withdraw to a reg savings, transfer out and back when the promo is over, not worth the fees, paperwork or time it takes to transfer. Have to be one hell of a good deal for more than 3 months to make it worthwhile. Not a CIBC/PC fan in the first place.

September 9, 2014
9:45 pm
Jack Manning
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Rick, we did not bite either as their bait and used our TFSA money for longer term investing. We bought back then in 2011, 4.90% government zero coupon bonds.

We were emailed at least 3 times about their 3.00% TFSA rate special and we replied to them once only that we decided to lock in longer term at 4.90% with other fixed rate investments.

It seems to me that Peoples Trust Company's 3.00%, TFSA savings account rate is not changing anytime soon.

September 9, 2014
10:12 pm
Rick
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Jack Manning said
It seems to me that Peoples Trust Company's 3.00%, TFSA savings account rate is not changing anytime soon.

Hope not. Lot of downward pressure on rates lately. Tang and PC promos both help, but ending before the new year and limit increase for 2015 kicks in (good if you want to pull a December maneuver I guess). Wondering when the maximum contribution amount will increase to a point that they won't be able to sustain paying rates so far above the rest of the players. Looks like their high rate credit card is a good chunk of their business, so as long as that does well, maybe they can keep ahead of the pack for a bit longer.

September 10, 2014
1:09 am
Loonie
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Jack Manning said

Loonie, we were at Duca C.U. yesterday on our lunch break and we topped up our 2 daughters RESP's by $2,500 each, $5,000 combined to get the full CESG benefit.

This was a non-registered GIC that matured for $10,000 and we just reinvested it in a 3.00%, 7 year non-registered GIC and 3.00%, 7 year RESP GIC's. The combined $2,298.74 interest is okay for what is out there right now.

I don't know if you remember but it is hard to find RESP GIC's from most financial institutions at 3.00% rates and even at lower rates.

yes, I remember. I'm glad you were able to get this rate for the RESP.

September 10, 2014
7:21 pm
Jack Manning
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Loonie, in recent weeks bond yields are increasing by about 10 to 15 basis points but this is probably a short term rise which will come back down as some other bad news in the world comes up like in recent months, Russia, Ukraine, lower Canadian, U.S. GDP, falling stock market, European economy slowdown etc.

In case next year government zero coupon bond rates rise past 4.00% to 4.25% or higher than we will probably think about putting some more RESP's for my 2 daughters. This 3.10% PC Financial promo is not valid for RESP's either.

September 11, 2014
12:53 am
Loonie
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Nasty October is on its way...

September 11, 2014
11:25 am
rhvic
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Loonie said

Reading the fine print above...

In spite of the (miniscule) improvement in interest rate, I prefer the Tangerine offer. PCF will not pay the bonus portion of the rate until sometime in December after the 15th, date unspecified, whereas Tang pays it on the 1st of each month. Also, you have to keep the account open until at least Dec 15, and then wait for the bonus, which may not come until the end of the month. In effect, you will need to leave all the money in the account until Dec 15, as the bonus is based on the average on deposit during the promo period.

Loonie, my understanding is that the interest is calculated daily, thus one does not have to keep all the funds in the account until Dec. 15. But yes you do need to keep an accocunt open after that so they can deposit the interest. Personally, I plan to withdraw all the extra funds again by say Dec. 10 in case they come up with a subsequent promo offer which might just be based on the balance as of Dec. 15.

September 11, 2014
1:54 pm
Loonie
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rhvic said

Loonie said

Reading the fine print above...

In spite of the (miniscule) improvement in interest rate, I prefer the Tangerine offer. PCF will not pay the bonus portion of the rate until sometime in December after the 15th, date unspecified, whereas Tang pays it on the 1st of each month. Also, you have to keep the account open until at least Dec 15, and then wait for the bonus, which may not come until the end of the month. In effect, you will need to leave all the money in the account until Dec 15, as the bonus is based on the average on deposit during the promo period.

Loonie, my understanding is that the interest is calculated daily, thus one does not have to keep all the funds in the account until Dec. 15. But yes you do need to keep an accocunt open after that so they can deposit the interest. Personally, I plan to withdraw all the extra funds again by say Dec. 10 in case they come up with a subsequent promo offer which might just be based on the balance as of Dec. 15.

The fine print above says the offer "is calculated based on the portion of the Eligible Account’s average daily closing balance during the Offer Period that exceeds the closing balance as at September 5, 2014." Being a bit of a sceptic, I would interpret this to mean that they would average the balances on ALL the days during the period, not just the ones where you had put the bulk of your money. This would also include the days between Sept 5 and whenever you put the money in. They don't pay ANY interest until after the offer is over, and it appears to be based on the average of the entire period.

It might be a good idea to ask them this particular question. I suggest it be asked by email so that you have a record of the response. Please let us know if you do so.

I find the Tangerine offer less problematic, as the bonus interest is given monthly on the 1st of the month, so you know you have it. I suspect that one of the reasons it is being given on the 1st and not on the last day is precisely in order to discourage people from removing the money just before the end of the month and redepositing it at the beginning of the next month in order to take advantage of another deal. This also suggests that there will be another deal the following month.

September 12, 2014
6:49 am
Norman1
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Loonie said
...
Neither Tang nor PCF are offering monthly compounding on this offer. Tang even says that they will not compound the basic rate during the promo (#12 in Tang's T&C). So you might want to consider taking out your interest every month and putting it somewhere else - just to make a point!

I think Tangerine is offering monthly compounding on their offer at the normal (1.3%) rate. This is condition 12 of the Tangerine Bank 3% Fall Savings Sale:

12. All interest payments are ineligible for the purposes of calculating Additional Interest and will not be calculated for the purposes of determining eligible daily balances. In other words, any interest paid into an Applicable Account, including Additional Interest, will not be treated as a new deposit for subsequently calculating Additional Interest payments.

It just says interest paid, including the Additional Interest that tops the rate up to 3%, into the account won't earn any Additional Interest to top the interest-on-the-interest up to 3%.

September 12, 2014
9:26 am
gocanada
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I called in to ask about the difference between the way they calculate interest normally (daily) vs with this promotion (average daily closing balance). They did confirm that it is different, and that it works out worse for us. When I attempt to put this into a spreadsheet, it appears to work out the exact same, with the exception of compounding interest. Is there more to it than that?

September 12, 2014
10:06 am
james1900
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I feel all of you qualify to work as a banker. You are discussing the extra day's interest on a leap year; compound interest paid on the promotional rate; interest calculated daily or on average daily balance; etc. For me, that difference might be only 1 or 2 cents, if it has.

September 12, 2014
1:00 pm
Bryan Stro
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The key problem with this PC Financial offer is that when you go to withdraw your money after December 15th, PC Financial will take forever, like really a long timesf-yell, to get it back to you.

September 12, 2014
1:35 pm
Loonie
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Norman1 said

Loonie said
...
Neither Tang nor PCF are offering monthly compounding on this offer. Tang even says that they will not compound the basic rate during the promo (#12 in Tang's T&C). So you might want to consider taking out your interest every month and putting it somewhere else - just to make a point!

I think Tangerine is offering monthly compounding on their offer at the normal (1.3%) rate. This is condition 12 of the Tangerine Bank 3% Fall Savings Sale:

12. All interest payments are ineligible for the purposes of calculating Additional Interest and will not be calculated for the purposes of determining eligible daily balances. In other words, any interest paid into an Applicable Account, including Additional Interest, will not be treated as a new deposit for subsequently calculating Additional Interest payments.

It just says interest paid, including the Additional Interest that tops the rate up to 3%, into the account won't earn any Additional Interest to top the interest-on-the-interest up to 3%.

To my ears, when it says "All" interest payments are ineligible, that includes the basic rate as well. You seemed to agree with that in your first comment but not in your second, so I am confused.
At best, I find it unclear. Probably it would be best to give them an example by email and see what their calculation works out to.

September 12, 2014
9:28 pm
Jack Manning
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James1900 and Brian, pennies, dollars, ten dollars etc. is from all the suckers like us called depositors, investors, consumers.

However, for the major banks mostly and all other financial institutions, debt and bond issuers that is hundreds of millions to billions in interest in their pocket, account. The banks, financial instititions, insurance companies through annuities and other interest based products, corporations, companies, governments.

By the way, if you are only getting 1 or 2 cents interest in one day then you are really losing financially already so why would you care if they take away one more day of interest.

For the rest of us, I don't care if it is $1.00 or $10.00, it is the called paying with integrity which this world has lost because most people do not speak up and stand up.

For example, $500,000 in 3.00% RRSP's, TFSA's would earn $41.10 per day and in say a 3.75% bonds, it would be $51.36 per day of interest.

The same goes for paying them interest such as mortgages, car loans, line of credit etc. so they got us both sides, over $80 to $100 right there.

Maybe it is should be called a leap year financially because they just leap over our accounts to avoid paying us interest but leap on and in our accounts when it comes to charging us interest.

One more example of nickel and dime economics from those big banks, insurance companies, corporations, governments, that mostly make us pay. Terms and conditions are supposed to be there to protect both sides that are paying and those receiving but it is not permission to steal no matter what laws, legal garbage is involved.

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