Targeted offer: 2.75% for new money from March 1st to June 30th | Page 4 | Simplii Financial | Discussion forum

Please consider registering
guest

sp_LogInOut Log In sp_Registration Register

Register | Lost password?
Advanced Search

— Forum Scope —




— Match —





— Forum Options —





Minimum search word length is 3 characters - maximum search word length is 84 characters

No permission to create posts
sp_Feed Topic RSS sp_TopicIcon
Targeted offer: 2.75% for new money from March 1st to June 30th
July 14, 2022
1:40 pm
andied20
Member
Members
Forum Posts: 22
Member Since:
October 10, 2016
sp_UserOfflineSmall Offline

My point, which apparently, I did not express very well, unlike any other interest promotion I have experienced, from any other bank, the Simplii promotion is a short-term cashable fixed term investment, with penalty for early withdrawal. Apparently those replying to my post were aware of this...I was not. In retrospect I should have studied the terms and conditions more carefully, but as I stated, it has not been an issue previously...and will not be an issue in the future.

July 14, 2022
1:51 pm
cgouimet
Member
Members
Forum Posts: 1481
Member Since:
February 7, 2019
sp_UserOfflineSmall Offline

andied20 said
My point, which apparently, I did not express very well, unlike any other interest promotion I have experienced, from any other bank, the Simplii promotion is a short-term cashable fixed term investment, with penalty for early withdrawal. Apparently those replying to my post were aware of this...I was not. In retrospect I should have studied the terms and conditions more carefully, but as I stated, it has not been an issue previously...and will not be an issue in the future.  

I don't understand your concern. Were you expecting to earn Simplii interest on funds that you withdrew?

CGO
July 14, 2022
2:18 pm
andied20
Member
Members
Forum Posts: 22
Member Since:
October 10, 2016
sp_UserOfflineSmall Offline

Wow, I guess I am really poor at explaining myself. Of course, I do not expect to be paid interest on non-existent funds, but I was expecting to receive interest similar to the other financial institutions - my mistake.

A basic example: the promo was for 4 months, I had 100K deposited the first month, and at 2.75%(I know the bonus was less the basic) so I expected approx $230 for that month (to be paid at the end), but I removed those funds after the first month and my account balance was averaged over those 4 months so I had an average of approx 25K and received $60 interest.

I knew the interest payment would be delayed (as always with simplii), but I did not realize the interest was based on the entire term. I did not realize that interest I accumulated in the first month would be reduced after I reduced my balance.

July 14, 2022
2:31 pm
cgouimet
Member
Members
Forum Posts: 1481
Member Since:
February 7, 2019
sp_UserOfflineSmall Offline

andied20 said
Wow, I guess I am really poor at explaining myself. Of course, I do not expect to be paid interest on non-existent funds, but I was expecting to receive interest similar to the other financial institutions - my mistake.

A basic example: the promo was for 4 months, I had 100K deposited the first month, and at 2.75%(I know the bonus was less the basic) so I expected approx $230 for that month (to be paid at the end), but I removed those funds after the first month and my account balance was averaged over those 4 months so I had an average of approx 25K and received $60 interest.

I knew the interest payment would be delayed (as always with simplii), but I did not realize the interest was based on the entire term. I did not realize that interest I accumulated in the first month would be reduced after I reduced my balance.  

OK. A few data gaps in there preventing good understanding (to me at least) so, I'll just let this go ...

CGO
July 14, 2022
6:35 pm
Bill
Member
Members
Forum Posts: 3955
Member Since:
September 11, 2013
sp_UserOfflineSmall Offline

Are you saying you had $100k there for a month at 2.75% promo interest but your promo interest, paid into your account about halfway through the month after the month the promo ended, was $60 in total for the entire 4-month promo period?

(I agree your monthly average was $25K but you should have then received about $60 for each of those 4 promo months, i.e. about the same $240 promo interest you were expecting.)

July 14, 2022
6:57 pm
Norman1
Member
Members
Forum Posts: 6860
Member Since:
April 6, 2013
sp_UserOfflineSmall Offline

The average new money was not $25,000 if one received $60 in total for the four months.

The average new money was actually about $6,545. That could be possible if not all of the $100,000 was new money.

That could be possible if there was $100,000 of new money on top of $24,607 of existing money and both were withdrawn after one month.

Average balance would be ( ($100,000 + $24,607) + 3 * ($0)) / 4 = $31,151.75.

Average new money, that qualifies for the extra interest, would be

$31,151.75 - $24,607 = $6,544.75

July 14, 2022
7:56 pm
andied20
Member
Members
Forum Posts: 22
Member Since:
October 10, 2016
sp_UserOfflineSmall Offline

My actual account and situation was more complicated than my example; I was trying to show a simple example of how Simplii calculates promo interest compared to other financial institutions.

I did have funds already in the account and I added new money. I added approx $70K in new money, which remained in the account for over 7 weeks, and I had approx $25K in new money for an additional week or two, and approx $45K in new money for an additional 12 days. My total interest received for the 4 months was slightly over $100.

July 14, 2022
9:37 pm
Norman1
Member
Members
Forum Posts: 6860
Member Since:
April 6, 2013
sp_UserOfflineSmall Offline

Unfortunately, your example is not only fictitious but also incorrect.

Simplii promotions pay bonus interest on the average new money balance of the entire promotion period for the entire promotion period, not for just the part of the period that the new money was present.

Your account received less than the expected bonus interest because the account had days when the closing balance was below the starting balance of the offer. Those days earned "negative" bonus interest that offset much of the expected bonus interest earned on other days. I described that previously.

July 15, 2022
6:43 am
JohnnyCash
Member
Members
Forum Posts: 257
Member Since:
April 21, 2022
sp_UserOfflineSmall Offline

Norman1 said
Unfortunately, your example is not only fictitious but also incorrect.

Simplii promotions pay bonus interest on the average new money balance of the entire promotion period for the entire promotion period, not for just the part of the period that the new money was present.

Your account received less than the expected bonus interest because the account had days when the closing balance was below the starting balance of the offer. Those days earned "negative" bonus interest that offset much of the expected bonus interest earned on other days. I described that previously.  

Would a simple rule of thumb for future reference be to always start with an opening balance of zero if one wants to take advantage of a Simplii HISA promotional offer? Personally, I always zero out my account just before a promo ends in the event another one follows, as has recently occurred with the current July 1 to October 31 offer.

July 15, 2022
6:51 am
mustang
Member
Members
Forum Posts: 217
Member Since:
January 7, 2020
sp_UserOfflineSmall Offline

Yes, follow the same practice. This time, got "caught" with 1.98 interest that came in at the end of June. This makes two times in a row, that as soon as one promo ended, got the next offer days later. So, best practice would be to clear it all out prior to any promo ending, methinks.

July 15, 2022
7:07 am
Norman1
Member
Members
Forum Posts: 6860
Member Since:
April 6, 2013
sp_UserOfflineSmall Offline

It would be good to have a balance of zero at the start of their new money offers.

Next best would be to keep the balance during the promotional period above the starting balance.

Probably not a serious issue with a starting balance of $1.98. Days should the new money balance be -$1.98 won't earn much "negative" bonus interest. But, taking out an existing $10,000 for a month of the promotion would result in offsetting a month of bonus interest on $10,000 of the new money.

July 15, 2022
7:57 am
COIN
Member
Members
Forum Posts: 1122
Member Since:
March 15, 2019
sp_UserOnlineSmall Online

mustang said
This makes two times in a row, that as soon as one promo ended, got the next offer days later. So, best practice would be to clear it all out prior to any promo ending, methinks.  

Yes, same happened to me. Got the new 3% promo right after the old 2.75% promo ended.

So, I signed up and got an email confirmation from Simplii the next day.

July 15, 2022
9:36 am
andied20
Member
Members
Forum Posts: 22
Member Since:
October 10, 2016
sp_UserOfflineSmall Offline

Yes, I see that my original example was inaccurate, as Norman1 stated, due to the neagative impact of my pre-existing balance.

As I mentioned in a previous post, I was expecting the interest to be calculated similar to Tangerine, or any other bank I have used--just delayed, and as I previously stated--my mistake. With Tangerine, adding $70K for 7 weeks to whatever my balance might be, would result in about $250 interest.

September 4, 2022
9:03 am
suziTS250
Member
Members
Forum Posts: 5
Member Since:
September 27, 2020
sp_UserOfflineSmall Offline

Sneaky SOB's! Put money in my TFSA, as always, but deceptively, only the HISA is eligible for this promo. Learned a valuable lesson, beware the details, or lack of‍.sf-crysf-cry

September 4, 2022
9:58 am
Norman1
Member
Members
Forum Posts: 6860
Member Since:
April 6, 2013
sp_UserOfflineSmall Offline

That's unfortunate.

When the offer fine print refers to "Simplii Financial High Interest Savings Account", it only means one of these four Simplli savings accounts, listed in the CIBC CDIC deposit register:

  1. Simplii Financial High Interest Savings Account
  2. Simplii Financial USD Savings Account
  3. Simplii Financial Tax-Free Savings Account
  4. Simplii Financial RRSP Savings Account
No permission to create posts

Please write your comments in the forum.