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Email this10:45 pm
July 15, 2014
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I was wondering if there was any advantage to transferring Tang funds (3% to end of Nov., .8% thereafter) to PCF (earning 2.5% to end of year). This transfer needs to happen prior to Sept 30 to qualify. I calculate extremely small advantage to making the transfer. Can anyone confirm? Thanks
3:28 am
October 21, 2013
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To some extent, it depends on how much money you deposit.
Tang may make another offer in December; they may also reduce their 0.8% rate then; who knows?
You're basically dealing with 3 months - Oct, Nov, Dec.
With PC, the rate is going to be 2.5 for the whole 3 months.
With Tang, for quick estimate, I would average out the rates for the 3 months, even though not all months are equal. Thus, 3 + 3 + 0.8 = 6.8, divided by 3 = 2.3
So, PC looks slightly better, plus you have the rate guarantee. With Tang, there is no rate guarantee for Dec at all.
I don't think it's worth moving the money to PC unless you have a very large deposit, in which case it might be worth a more detailed calculation. Consider too what you would have after taxes.
This is just a rough calculation, but I think it confirms what you have suspected, that there's not much to choose between them.
2:42 pm
February 24, 2015
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I suppose that if you need the money in December - for income tax installments, other emergencies or opportunities, etc., you would be happy to earn the 3% until the end of November. Not much upside in my opinion to move from Tangerine for this.
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