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Simplii - tiered possibly higher rates coming
August 18, 2022
8:55 am
KamWest
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Screenshot-17.png

This is new for the high interest savings account.

They are getting ready for tiered rates.

Do they want to give everyone the highest rates? No

The bigger accounts following higher rates will be woo and the lower accounts will get less interest. As the money flows out to online banks the big boys with simplii, tangerine etc are going to have to work to get our money again.

That said, they wont pay the poor guys, just the larger savers will benefit. Watch the tired rates rise when they need money to fund the housing crisis.

August 18, 2022
12:28 pm
canadian.100
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KamWest said
Screenshot-17.png

This is new for the high interest savings account.
They are getting ready for tiered rates.
Do they want to give everyone the highest rates? No
The bigger accounts following higher rates will be woo and the lower accounts will get less interest. As the money flows out to online banks the big boys with simplii, tangerine etc are going to have to work to get our money again.
That said, they wont pay the poor guys, just the larger savers will benefit. Watch the tired rates rise when they need money to fund the housing crisis.  

Revised
My letter refers only to the No Fee Chequing Account. Some rates will stay the same for me .01% from 0 to 50K. Other tiers are a bit higher .05% 50K to 100K and .10% over 100K. I did not get a letter re my Saving Acct - I think it already pays a "generous" .40%. Obviously, one can do better elsewhere.

August 18, 2022
12:47 pm
KamWest
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No I think the change is across the board, they only had two tiers, soon they will have 5

April 13, 2023
5:15 pm
KamWest
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Screenshot-54.png

We knew this was coming, they need big money and are only willing to payout to big depositors, everyone else gets the scraps.

I do bank with simplii but only for chequing so they will have to do a lot better for everyday depositors before they get their money.

Their short 3 months promos are more of a pain in the butt than anything too.

May 16, 2023
6:29 pm
hwyc
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Now if your balance is over 1 million with them, your deposit earns 4.10%

... folks, six digits balance is no longer impressive, inflating to seven sf-yell

May 16, 2023
7:39 pm
JohnnyCash
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hwyc said
Now if your balance is over 1 million with them, your deposit earns 4.10%

... folks, six digits balance is no longer impressive, inflating to seven sf-yell  

Screenshot-2023-05-16-203530.png

Gosh, tied with Motive that pays 4.1% with no minimum balance requirement.

May 17, 2023
6:30 am
kesa
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you can always rely on apathy

May 17, 2023
7:20 am
Norman1
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I think the rate tiers for $500,000 and $1 million+ are moot.

People with that kind of balances would have moved the funds to a brokerage account. There, they would access rates like 4.6% from 30-day bankers' acceptances or 4.05%+ from brokerage ISA's.

People who have $500 aren't going to care about 4.1% versus 0.4%. The difference to them would be $18.50/year or about $1.50/month.

May 17, 2023
8:17 am
savemoresaveoften
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Norman1 said
I think the rate tiers for $500,000 and $1 million+ are moot.

People with that kind of balances would have moved the funds to a brokerage account. There, they would access rates like 4.6% from 30-day bankers' acceptances or 4.05%+ from brokerage ISA's.

People who have $500 aren't going to care about 4.1% versus 0.4%. The difference to them would be $18.50/year or about $1.50/month.  

Thats the thing. The tiering at Simplii makes zero business sense. Unless they have a lot of business account deposit parking good size money there, which seems impossible give they are focused on personal banking not business.

On the other hand, HSBC does have big size deposits from the Asian customers I heard. But again that was before cash EFTs or bank HSA shot up to north of 4%+ after the multiple rate hike.

May 17, 2023
10:54 am
COIN
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"I think the rate tiers for $500,000 and $1 million+ are moot."

I think those people are more concerned about the credit quality of the institution. Think Silicon Valley Bank, First Republic, etc. In Canada, we had PACE C.U. Of course, Simplii's parent is CIBC for what that is worth.

May 17, 2023
12:52 pm
canadian.100
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COIN said
"I think the rate tiers for $500,000 and $1 million+ are moot."

I think those people are more concerned about the credit quality of the institution. Think Silicon Valley Bank, First Republic, etc. In Canada, we had PACE C.U. Of course, Simplii's parent is CIBC for what that is worth.  

I would agree that such depositors would be more concerned with the credit quality of the institution.
and
Yes Simplii's "parent" being CIBC is definitely worth something. In fact, Simplii is a division of CIBC not a subsidiary of the parent.

June 17, 2023
4:29 am
hwyc
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(data point) HISA 5.25% for $1,000,000.01 and up

June 17, 2023
7:13 am
COIN
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KamWest said
No I think the change is across the board, they only had two tiers, soon they will have 5  

I called Simplli to-day and got a bit of a confusing (at least to me anyway) answer.

What seems to be clear (I think) is that you get the 5.25% if your balance is $1mm (or more) whether you are a new or existing client. If your balance is below $1mm, then it depends whether you are a new or existing client and whether the money is new or old.

Would appreciate any feedback from members who are smarter than me.

June 17, 2023
7:53 am
fat_dog
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All of theses offer are not really an attempts to raise money by the FI . But are a marketing stunts . Why dose it matter if the money is new or old if the goal of the FI is to raise money .

If the goal of the FI is new customer and the goal of the client is return . Sooner or later the FI is going to drive you away you are not what they want .

When a large FI what to raise money do they not do it through the brokerage house they own and not through the bank ? . Bank have become a platform to make loans . Do they really want savers at all ?

Promo like these seem intended to give you a good rate on a small sum in hopes that they can lend you a large amount of money .

They are no interested in people bring capital to their bank . They claim to be a financial services company not a bank at all the big banks .

I am sure you are plenty smart . people who ask question usually are

June 17, 2023
9:17 am
Norman1
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COIN said

What seems to be clear (I think) is that you get the 5.25% if your balance is $1mm (or more) whether you are a new or existing client. If your balance is below $1mm, then it depends whether you are a new or existing client and whether the money is new or old.

There are two 5¼% rate offerings on the Simplii HISA.

The first 5¼% rate offering is part of the regular tiered rate structure on the account. No time limit. No guaranteed offer period:

If your account balance is: Annual rate
$0.00 to $50,000.00 0.40%
$50,000.01 to $100,000.00
$100,000.01 to $500,000.00
$500,000.01 to $1,000,000.00 1.00%
$1,000,000.01 and up 5.25%

The second 5¼% rate offering is a time limited, new client offer on the same account for the first $1 million in the account:

The Simplii Financial™ High Interest Savings Account Promotional Interest Rate Offer for New Simplii Clients (the “HISA Offer”) is available between May 1, 2023 and July 31, 2023 (the “Offer Period”). The following terms and conditions (“Terms”) explain in detail how you can earn a special annual interest rate of 5.25% for 5 months on your first Simplii Financial High Interest Savings Account (“HISA”). To accept this offer, you must open an Eligible HISA during the Offer Period and make a deposit to your Eligible HISA during the Promotional Rate Period (as such capitalized terms are defined in these Terms).

1. Promotional Rate Period

If you meet the eligibility criteria and other conditions described in these Terms, the balance of your Eligible HISA (up to $1,000,000) will earn Promotional Interest for 153 days (which is about 5 months) from the date the HISA was opened (the "Promotional Rate Period").

June 17, 2023
9:20 am
hwyc
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Top tier interest paid *monthly*

… think I see his point … a new client depositing over $1m is still 5.25% … my take

June 17, 2023
9:41 am
Norman1
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Yes, the new client 5¼% offer is for "Promotional Interest" that will top the rate up to 5¼% for the first $1 million. "Promotional Interest" will be zero on funds that already earn 5¼% as "Regular Interest":

3. How Interest is Calculated and Paid

The special annual interest rate of 5.25% is a combination of the regular annual interest rate set by Simplii Financial payable on a HISA balance (“Regular Interest”), plus the promotional annual interest rate (“Promotional Interest”).

Interest on an Eligible HISA is calculated as follows:

• Regular Interest is calculated at the current rate on each day’s full closing balance.

• Promotional Interest is calculated on each day's full closing balance up to a balance limit of $1,000,000 during the Promotional Rate Period.

Regular Interest and Promotional Interest are calculated daily and paid monthly. …

Regular and Promotional Interest rates may change at any time without prior notice. Check out our current rates. Any change to the Regular Interest rate (or the applicable interest rate tier) will result in a corresponding change to the Promotional Interest rate so that the special annual interest rate will remain constant for the Promotional Rate Period.

At the end of the Promotional Rate Period, all balances will earn interest only at the Regular Interest rate.

June 17, 2023
10:17 am
RetirEd
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fat_dog:

Why dose it matter if the money is new or old if the goal of the FI is to raise money .

New money isn't "raised." It's already there! The banks have no benefit from increasing what they pay on existing deposits unless they are bleeding assets, so that's rare.

The requirement to open a savings account plugs them into a revenue stream of parasitic fees for the future.
RetirEd

RetirEd

June 17, 2023
10:21 am
AndreyG
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153 days is somewhat an overstatement. I decided to take advantage of this deal. Filled online form to open accounts (it requires to open both No fee checking and HISA to move funds electronically.) On June 9th email arrived informing me that "interest rate of 5.25% on eligible new deposits into your account from June, 09, 2023 until November, 09, 2023". At that time i did not have any info about my accounts, no access to online banking - nothing. The process of actually getting the account set is lengthy and not trivial. In particular it requires obtaining debit card for Checking account and making initial transaction with this card at CIBC bank machine. Card arrived yesterday, June 16th. But not the pin - it will arrive by snail-mail later. This is 10 days minus. After that there are more steps: for linking bank account of other financial institution Simplii requires sending them Void check CERTIFIED BY BANK (never encountered such requirement before) so it will take some more time. All this is a bit unusual.

June 17, 2023
10:28 am
Norman1
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Simplii doesn't require the void cheque to be stamped by the bank if the void cheque is an actual cheque that has been marked "void".

Simplii will require the bank stamping if the void cheque is one of those faux void cheques that are downloaded, like the ones from EQ Bank, and printed by the customer.

The full 153 days is possible. Just don't open the Simplii HISA until the Simplii chequing account is fully set up with bank card and online access.SimpliiOpening.png
As a new Simplii client, one has 30 days after one's client number is created to open one's first Simplii HISA during the offer period:

2. Eligibility

To be eligible for this HISA Offer, you must:

• be a new client with no prior relationship with Simplii Financial (a “New Simplii Client”). To become a Simplii Financial client, you must apply and be approved for a Simplii Financial product. When you apply for your first Simplii Financial product, we will create a unique client identification number for you (your “Client Number”); and

• open a HISA for the first time as the primary accountholder during the Offer Period [between May 1, 2023 and July 31, 2023] and within 30 days after your Client Number was created (“Eligible HISA”).

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