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SImplii Financial - 3.0% Interest on New Deposits until February 28, 2018
December 2, 2017
11:15 am
Norman1
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GR said

Simplii pays and posts interest on the last day of each month, calculated until the second to last day of each month. Interest at month-end December should be for November 30th to December 30th, inclusive. This method is somewhat unusual, but follows how PC Financial calculated monthly interest.

Thanks, GR. That insight deserves its own thread Monthly interest is from last day of previous month to 2nd last day of month.

December 2, 2017
4:58 pm
Bill
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Sorry, originally posted here in error.

December 3, 2017
2:51 pm
gipper
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Without a doubt, from all the online banks, Simplii has to be the most difficult to deal with. I'm an old PCF account holder, and trying to add a link to transfer a large sum to Simplii from other banks is next to impossible. not interested in small amounts that they allow by Interac or ATMs.
Similar problem with my daughter trying to open an account that has been dragging on for over 3 weeks. I get the feeling that they are oversubscribed and are trying to discourage depositors by making them wait on the phone for an hour or more.

December 3, 2017
4:24 pm
Norman1
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gipper said
Without a doubt, from all the online banks, Simplii has to be the most difficult to deal with. I'm an old PCF account holder, and trying to add a link to transfer a large sum to Simplii from other banks is next to impossible. not interested in small amounts that they allow by Interac or ATMs.

The Simpii HISA can accept electronic direct deposits and deposits at a CIBC ATM.

One could deposit a cheque drawn on the account at the other bank.

If the other bank also supports linked accounts, then one can link the Simplii HISA at the other bank and push funds at the other bank into the account.

December 4, 2017
8:19 am
gipper
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How long do you think it would take to deposit half a million at an ATM?
Unlike other electronic banks, Simplli only allows links to checking accounts, and why would account holders bother with those when they're only in it for the high interest. Those checking accounts could take a week to set up, and at $42 interest a day on half a mil, an additional transfer to a checking act would only delay the process even further.

December 4, 2017
12:04 pm
hank
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December 4, 2017
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Shame on President's Choice.
Notice that the blog indicate 3% without the asterisk- the large print giveth and the small print taketh away.
There is a big problem with the fine print.
If you think you are getting a daily interest of 3%, you're wrong!!!
You're going to love this- this is the new banking.... the interest is the average daily balance over the full period, so it isn't calculated daily it's over the full period.... so if you started with a balance of $10,000. and added $10,000. in the first month, but at the beginning of the third month you needed the $20,000 for a medical emergency, then at the end of 4 months your average daily balance would be zero ($10,000.+$10,000.-$10,000.-$10,000.) so you'd get no interest for keeping $10,000. in the account for 2 months.
Scenario 2: You put the money in at the end of the third month- you get an equivalent of 3/4% (3%x(1 month)/(4 months)), so every day that you wait to put your money into the account is a day that the proposed 3 % interest is decreased. The only way to get 3% is to have the extra money in the account for the full 4 months- any days less means you do not get the 3%
Would you consider this a scam, given the deceptive nature?

December 4, 2017
2:23 pm
Winnie
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From Simplii 3% "Legal":
1. The Promotional Interest is calculated on the portion of the Eligible Savings Account’s average daily closing balance during the Offer Period that exceeds the closing balance as at October 31, 2017 ...

From Simplii current regular 1% interest rate:
Interest is calculated on the daily closing balance ...

So, that additional 2% interest will be calculated on the average daily closing balance during the whole Offer Period.

December 4, 2017
2:44 pm
Rick
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Winnie said
From Simplii 3% "Legal":
1. The Promotional Interest is calculated on the portion of the Eligible Savings Account’s average daily closing balance during the Offer Period that exceeds the closing balance as at October 31, 2017 ...

From Simplii current regular 1% interest rate:
Interest is calculated on the daily closing balance ...

So, that additional 2% interest will be calculated on the average daily closing balance during the whole Offer Period.  

Sounds like a scam. Glad I didn't sign up.

December 4, 2017
4:22 pm
Bill
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hank, in your first scenario you'd get the regular 1% rate but no promo interest because your average balance during the promo period was the same as Oct 31.

Re your scenario 2, you have your money in for one month, you get the 3% for that month (or, as you say, 3/4% over 4 months). I'm not sure why you expect 3% for the whole period when it's only there for one of the four months.

Rick, assume your balance Oct 31 was $10k. Assume, after making 120 calculations (i.e. for each day of the promo period), it is determined your average balance during the promo period was $25K. You will get the 2% bonus interest on $15K for the full 120 days.

Winnie/Rick, I don't see what you're seeing - help me see how this is a problem/scam. The calculations have been discussed earlier in this thread and I don't remember it was concluded there was subterfuge, aside from the fact some compounding is lost (minimal effect).

December 4, 2017
4:32 pm
tc
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I am the primary holder of my own HISA and my wife is the primary holder of the joint HISA.
Does each account have 500000 max limit ? or is the 500000 applies to both accounts?

Thanks

December 4, 2017
5:24 pm
Norman1
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gipper said
How long do you think it would take to deposit half a million at an ATM?
Unlike other electronic banks, Simplli only allows links to checking accounts, and why would account holders bother with those when they're only in it for the high interest. Those checking accounts could take a week to set up, and at $42 interest a day on half a mil, an additional transfer to a checking act would only delay the process even further.  

At a CIBC ATM, the cheque deposit into the HISA would be credited the same day if done early enough in the day.

Simplii does allow electronic direct deposits into their HISA. I've pushed money at another financial institution into my Simplii HISA many times. No need to push the money into a Simplii chequing account first.

December 4, 2017
8:07 pm
gipper
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Norman,
1) There would be a lengthy withholding period for a $500,000 cheque to clear.
2) Why the hell would I want to make a deposit to a Simplii checking act when I'm only interested in the 3% promo?
My point was that Simplii does not allow direct transfers from HISA accounts of other online banks. They only allow transfers from checking accounts which take time to set up, and could delay the overall transfer time.

December 4, 2017
8:54 pm
Norman1
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gipper said
Norman,
1) There would be a lengthy withholding period for a $500,000 cheque to clear.
2) Why the hell would I want to make a deposit to a Simplii checking act when I'm only interested in the 3% promo?
My point was that Simplii does not allow direct transfers from HISA accounts of other online banks. They only allow transfers from checking accounts which take time to set up, and could delay the overall transfer time.  

Interest is earned starting the date of deposit eventhough the funds are still on hold. sf-smile

There may be restrictions if one wishes to initiate a transfer at Simplii Financial to pull money from the account at another online bank. One can also initiate a transfer at the other online bank to push money to the Simplii Financial HISA.

Some online financial institutions, like EQ Bank and Hubert Financial, don't use void cheques to establish a link. Instead, they can send one or two small deposits to the Simplii HISA. A day or two later, the small deposits will show up on Simplii's online banking website.

Once one provides the correct amount of those deposits to the financial institution, the link is activated and ready to use.

December 5, 2017
12:22 am
Rick
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Bill said
Winnie/Rick, I don't see what you're seeing - help me see how this is a problem/scam. The calculations have been discussed earlier in this thread and I don't remember it was concluded there was subterfuge, aside from the fact some compounding is lost (minimal effect).  

Do you mean these calculations by Norman1?:
For example, the interest for a three-day period with daily closing balances b1, b2, and b3:

(b1 * 2%/365) + (b2 * 2%/365) + (b3 * 2%/365)
= (b1 + b2 + b3) * 2%/365
= (b1 + b2 + b3) * 1 * 2%/365
= (b1 + b2 + b3) * 3/3 * 2%/365
= (b1 + b2 + b3) / 3 * 3 * 2%/365
= (average of b1, b2, and b3) * 3 * 2%/365
= (average of b1, b2, and b3) * 2%/365 * 3

Are you kidding me? Even Tang interest calculations aren't that complicated. I'm not an accountant, just an ex bus driver. Here's my calculation for monthly interest at Motive - amount X interest rate divided by 365 X days in the month. Easy-Peasey. I have to do 120 calculations to figure out interest not paid until the end of the promo? Not likely. On top of that, the word "average in the T&C is bothersome, unless I misunderstand the meaning of the word average. How would that affect an account that had significant withdrawals/deposits every day/week/month?
I went against my better judgement and applied to yet another bank to take advantage of a promo. Within days I regretted my decision after reading the posts in this forum. These are the issues that concerned me.
1) Took 3 weeks after initial application to even hear from them. When I finally did, there was at least another week or more before the account would be opened.
2) Can't apply for a joint account until initial account is up and running, which means it would be even longer before it was fully set up with joint status and checks. How can you properly determine eligibility for an overdraft on a joint account when you only take into account the credit rating of the initial applicant?
3) Go to the post office...seriously??? It's not 1968. What kind of "on-line" only bank requires me to even leave home to confirm my identity.
4) Can't fully link with other banks to push and pull from either side.
5) MAIL??? in a void cheque to link? Again, it's not 1968. I e-mailed a void check at one of my other banks and had it linked within the hour.
6) Simplii pays and posts interest on the last day of each month, calculated until the second to last day of each month. WHAT!!!??? WHY??? Just simplii (sic) no need for that. Another complication I don't need to deal with.
7) Their regular interest rate is 1% which means I will be chasing rates or hoping they will keep offering promos. Tang is all I can handle in that department.
8) Only CIBC ATM's are "ding-free"? Not interested if that's true.
9) Several examples in this thread of mis-information or conflicting information by CSR's. Not a good sign. May improve in the future as they become more familiar with their own rules, but not a good start.
10) Tang lost all my registered business after ING because of poor rates, new fees and lousy service. Probably not a good idea to start a new relationship with an institution that has all three of those boxes checked to start off.

Their whole system of operating an "on-line" bank service seems more like a snake-oil salesman or sleight of hand designed to confuse and confound, somehow to their benefit. Is that a scam? Maybe not, but looking at all those reasons, I'm still glad I didn't follow through and open an account with them.
Besides all that, as I posted earlier in this thread, I already deal with 4 other FI's. That's enough. How many is too many and how many do you patronize? Just curious...no one answered last time I asked.

December 5, 2017
4:24 am
tc
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tc said
I am the primary holder of my own HISA and my wife is the primary holder of the joint HISA.
Does each account have 500000 max limit ? or is the 500000 applies to both accounts?

Thanks  

Does anybody know the answer to the above question?
Emailed them days ago,still no reply

December 5, 2017
5:54 am
Bill
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tc, I didn't look right now but my recollection of the t&c is that the limit applies to accounts where you are the primary holder.

Update: I just looked at post #7 here, it has your answer.

December 5, 2017
6:12 am
Bill
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Rick, read my posts 72, 74, 76 on this thread, that's my understanding of how the 2% promo amount is calculated. Essentially, you don't earn it on a daily basis during the promo, you earn it after the promo period based on your average daily balance over the promo period (i.e. you don't have to do 120 calculations, their machine will) and by how much it exceeds your Oct 31 balance (zero for new customers). So no need to worry, you're getting the proper amount of interest for the full 120 days - e.g. if you have $60k in there for 60 days they will calculate promo interest on $30K (average daily balance) for 120 days, same deal.

But (unlike the increasingly controlled market folks seem to prefer these days) that's the beauty of the free market, i.e. if a business bugs you enough you can just ignore them and transact wherever the heck you like, or even start up your own business and show the world how to do it properly! sf-smile

December 5, 2017
6:50 am
tc
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Bill said
tc, I didn't look right now but my recollection of the t&c is that the limit applies to accounts where you are the primary holder.

Update: I just looked at post #7 here, it has your answer.  

Thanks Bill,
In short,I get 500k and my wife (being the primary holder of the joint account) also gets 500k limit.
Is that your understanding?

December 5, 2017
8:48 am
Bill
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Yes, tc, sock that mil away!

December 5, 2017
10:27 am
Winnie
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Bill said

Winnie/Rick, I don't see what you're seeing - help me see how this is a problem/scam. The calculations have been discussed earlier in this thread and I don't remember it was concluded there was subterfuge, aside from the fact some compounding is lost (minimal effect).  

Bill, at this point I'm not sure if this is a problem/scam, when that additional 2% interest will be calculated on the average daily closing balance during the whole Offer Period.

That additional 2% interest in March 2018 should be exactly 2 times of the regular 1% interest received during 120 days promo. It is my very simple calculation formula for Simplii "Get 3%" promotion.

If Simplii average calculation will be less than double of the total regular interest, I will contact Simplii and at that time this promo can be declared a problem/scam.

Please write your comments in the forum.