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SImplii Financial - 3.0% Interest on New Deposits until February 28, 2018
November 2, 2017
9:58 am
fabafter50
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Well said Doug! I also told Tangerine to suck a lemon. In writing. They passed me over 3 times for decent offers then the fourth time sent something reasonable which out of principle I ignored because with a little more work got it elsewhere.

November 2, 2017
10:18 am
DevPatel
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Doug said
However, I like to support "the little guy" and that's why I opted to tell Tangerine to "suck it" (not literally, but figuratively by moving my money out) this quarter with their paltry 2.12% bonus offer. I also did not want to beg for a "retention offer" on principle. I demand at least a 0.40-0.50% premium from "the big guys" (you know who they are) in order to move deposits for a calendar quarter. If it's less than that, I'm more willing to "give up" that modest premium to the "little guy," knowing it's helping their business in terms of capital adequacy and profitability in terms of community donations they can provide each year.

Cheers,
Doug  

Well said and done...
Cheers

November 2, 2017
1:12 pm
rfdm4g4g9
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davidgeorge said
I tried to link my Tangerine Savings Account to Simplii, but was asked to send a void cheque, so seems we can only link Chequing account to Simplii, but not Savings account since we don't have cheque for a savings account.  

You can link your Simplii Savings account to Tangerine Savings account from the Tangerine side.

Tangerine will do 2 micro deposits in your Simplii Savings Account and then you confirm those micro deposits, and Simplii Savings Account will be added as an external account to your Tangerine Savings account. You can then PUSH or PULL from Simplii Savings to Tangerine Savings, via Tangerine.

Completely by passing any chequing account either with Simplii or Tangerine.

But you are right from Simplii side you can't link to Tangerine Savings, only chequing account can be linked.

November 2, 2017
1:19 pm
rfdm4g4g9
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Benjames35 said
I got lucky, Oct.30 I transferred all my money from Interest Plus Savings to chequing(which takes a day) because the 2.5% was ending and I was going back to Canadian tire bank and so my balance on Oct.31 in savings was 0.00 so I called to ask if I would get the 3% if I moved my money back and he said yes so I'm good to go.  

The T & C say otherwise. Simplii checking to Simplii Savings doesn't count as new money, if that money was still there in Simplii checking on Oct 31.

The rep was misinformed. Was your money out of Checking and your balance in checking was also Zero before Oct 31 ? Then it would count.

Now if you were transferring from Canadian Tire to Simplii Savings, its different.

November 2, 2017
2:35 pm
davidgeorge
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Term, "Promotional Interest will be paid in March 2018 into a single Eligible Savings Account held by a primary account holder." so we won't get compound interest, right? Can anybody do a calculation, for $100,000, what is the real rate by getting all the interest in March 2018, not monthly?

November 2, 2017
2:52 pm
Loonie
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I get the point that we need to express our need for higher rates and more competition with our feet, but does anyone really think that 3% is a rate on which CIBC can make money during this promo period? (Remember that the going rate for one year GICs is about 1.95 in most of the better FIs right now.) I'm certainly no expert on bank finances, but I would think they are losing money on it in the short term and that it's not reasonable to expect that the other FIs who have more shallow pockets can all follow suit. Thus, accepting the Simplii offer may lead to less competition, not more; and this would be bad for us in the longer term.

I too would thumb my nose at Tang's 2.12 or thereabouts, but spouse and I both got 2.75 and, this time, I did bend.

Alterna is giving 1.9, not 1.95 now, which puts them so close to the MB CUs that the difference is not worth moving money for the short term.

Laat winter I lucked out with Meridian and got two consecutive 3-month offers at 3%, which we took advantage of to the max. I would have been willing to cut them some slack on rates after that, but now they are down to 1.4, which I simply can't justify, so pretty much all of our money is gone from there. I would like to support them, but they simply aren't listening. They continue to offer low interest loans, build more branches, do sponsorships, etc which don't help or interest me. I accept that their goal seems to be to wean people from the Big Five bricks and mortar. I'm not sure how sound this will be over the long term as Big Five are reinventing themselves as Simplii etc. , and Meridian is, at the moment, lagging behind.

I also don't underestimate the power of FIs to fight back. Any and all of them could decide they don't want my business any more, which would not be good for me, so I try to continue to to work with the ones that are reasonable, even if not at the absolute top of the heap all the time. I don't find these to be easy decisions, not simply a matter of running to the one that offers the best deal for 3 months etc. It's more a question of how can I keep the ones that I like the best in business while still getting superior rates for myself.

November 2, 2017
3:42 pm
Bill
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I believe that individuals acting in their own economic self-interest, within the law, is a big part of what makes the world a wonderful place so I don't concern myself with anything else when it comes to financial decisions. Plus my time here is finite, and the "long term" might be tomorrow for me for all I know. And I've got no illusions about my effect (i.e. zero) on whether or not a particular financial institution succeeds or fails. So I go wherever my interests are best served at any particular moment, and leave the "big picture possible-future" stuff to those who want to spend their time on that. Today, for my high interest bank account money you can't beat Simplii, so for me that makes it simple. We'll see what tomorrow brings.

November 2, 2017
4:26 pm
Rick
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Missed out most of the benefit when Peoples was offering rates askew from everyone else,learned a lesson when I got sucked in to EQ's "this is not a promo rate" promo. Not really worth the time and trouble to set up / maintain accounts and EFT's at yet another FI for .25% above what it is getting now until the end of the year. We'll see what happens in Jan. If things don't improve, EQ may have to be replaced. I am using 3 FI's now (4 if you count the dormant CC account), I think that's enough. How many do you juggle?

November 2, 2017
4:54 pm
Joebart
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davidgeorge said
Term, "Promotional Interest will be paid in March 2018 into a single Eligible Savings Account held by a primary account holder." so we won't get compound interest, right? Can anybody do a calculation, for $100,000, what is the real rate by getting all the interest in March 2018, not monthly?  

Since we are talking about four months only the difference between regular and compound interest will not be significant and it's not a deal breaker for me.

November 2, 2017
5:51 pm
Loonie
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I haven't done this calculation, but I did it for a similar offer once. It amounted to .02% annually on a rate of about 2%

For purposes of comparing to any other rate on offer, it doesn't make any difference. For income purposes, it will make a slight difference.

November 2, 2017
6:30 pm
Norman1
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3% per annum, not compounded, from November 1, 2017 to February 28, 2018 works out to be

3% * 120 / 365 = 0.98630%

Compounded monthly is

(1 + 3% * 30/365)(1 + 3% * 31/365)2(1 + 3% * 28/365) - 1 = 0.98995%

November 2, 2017
6:47 pm
2of3aintbad
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PCF paid x% compounded monthly + (promo rate - x%) x new deposits, adjusted for the number of days. There is no compounding of the bonus interest, sort of a 90 day GIC.

November 2, 2017
8:37 pm
Interest
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davidgeorge said
Term, "Promotional Interest will be paid in March 2018 into a single Eligible Savings Account held by a primary account holder." so we won't get compound interest, right? Can anybody do a calculation, for $100,000, what is the real rate by getting all the interest in March 2018, not monthly?  

https://www.simplii.com/en/rates.html#accounts

High Interest Savings Account

Interest is calculated on the daily closing balance and is paid
into your account monthly. Rates subject to change.

Also:

https://www.simplii.com/en/special-offers/savings-account-bonus-interest.html

*Legal -

B. Registered Savings Offer

“Eligible Registered Savings Account” means a Simplii
Financial Daily Interest RRSP Account, RRSP Savings Account
and/or Tax -Free Savings Account.

1.The Promotional Interest is calculated on the portion of the
Eligible Registered Savings Account’s average daily closing
balance during the Offer Period that exceeds the closing
balance as at October 31, 2017 (the “Additional Balance”) to a
maximum of $500,000

November 3, 2017
9:27 am
Benjames35
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Yep, you guys were right, I called back to verify about getting the 3% on my money that I moved from IPSA to Chequing on Oct. 31 and then to Canadian tire on Oct.31. Even tho I was already making interest on the money at Canadian tire bank on Oct. 31 I didn't get my money out in time for this promotion, guess I'll have to take it out 3 days before next time.

sf-frown

November 3, 2017
1:43 pm
Lodown
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rfdm4g4g9 said

You can link your Simplii Savings account to Tangerine Savings account from the Tangerine side.

Tangerine will do 2 micro deposits in your Simplii Savings Account and then you confirm those micro deposits, and Simplii Savings Account will be added as an external account to your Tangerine Savings account. You can then PUSH or PULL from Simplii Savings to Tangerine Savings, via Tangerine.

Completely by passing any chequing account either with Simplii or Tangerine.

But you are right from Simplii side you can't link to Tangerine Savings, only chequing account can be linked.  

Slight correction: One cannot PUSH from Simplii Savings from Tangerine. PULL is the only possibility.

November 3, 2017
2:14 pm
Bill
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I figured he meant push to or pull from Simplii via (using) Tangerine. Lodown, it's not clear what you mean by "One cannot PUSH from Simplii Savings from Tangerine" - you've got two "froms", so I don't understand what you mean to say.

November 3, 2017
7:25 pm
Norman1
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2of3aintbad said
PCF paid x% compounded monthly + (promo rate - x%) x new deposits, adjusted for the number of days. There is no compounding of the bonus interest, sort of a 90 day GIC.  

For the current 3% Simplii Financial offer (from November 1 to February 28), 1% compounded monthly regular interest plus 2% non-compounded bonus interest would pay 0.329172% of regular interest and 0.658345% of bonus interest.

Total of 0.987517%. Total would be 0.989953% if the bonus interest were also compounded.

The 0.987517% return is equivalent to about 2.9926451% per annum, compounded monthly.

November 4, 2017
5:46 am
2of3aintbad
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Norman1 said

For the current 3% Simplii Financial offer (from November 1 to February 28), 1% compounded monthly regular interest plus 2% non-compounded bonus interest would pay 0.329172% of regular interest and 0.658345% of bonus interest.

Total of 0.987517%. Total would be 0.989953% if the bonus interest were also compounded.

The 0.987517% return is equivalent to about 2.9926451% per annum, compounded monthly.  

It appears to me that you have just doubled the compounded 0.329172% of regular interest to get your number 0.658345%. It must be a little less than that, like 0.657...%

November 4, 2017
9:01 am
Norman1
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2of3aintbad said

It appears to me that you have just doubled the compounded 0.329172% of regular interest to get your number 0.658345%. It must be a little less than that, like 0.657...%  

I calculated both. The promotional interest does turn out to be double the amount of regular interest!

Month Days Regular
1% Interest
Balance Promotional
2% Interest
31-Oct-2017 31 100.00000000%
30-Nov-2017 30 0.08219178% 100.08219178% 0.16438356%
31-Dec-2017 31 0.08500131% 100.16719309% 0.17000263%
31-Jan-2018 31 0.08507351% 100.25226660% 0.17014701%
28-Feb-2018 28 0.07690585% 100.32917245% 0.15381170%
Total 0.32917245% 0.65834490%
November 4, 2017
10:02 am
2of3aintbad
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2of3aintbad said

It appears to me that you have just doubled the compounded 0.329172% of regular interest to get your number 0.658345%. It must be a little less than that, like 0.657...%  

We'll see in March, but I think that you should not compound the 2% column, instead:
31-Dec-2017 31 0.169863%
31-Jan-2017 31 same as above
28-Feb-2017 28 0.153425%
Total 0.6575%

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