Verifying the 3% on new deposits, Nov. 1, 2017 - Feb. 28, 2018 | Simplii Financial (formerly PC Financial) | Discussion forum

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Verifying the 3% on new deposits, Nov. 1, 2017 - Feb. 28, 2018
March 10, 2018
1:22 pm
Norman1
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hgx27 said
When I calculate the amount of interest to be paid out on the amount I deposited for the period of time it was in the account, I do not get the same amount that was paid out on March 8th. The only way I get the same amount is if I exclude weekends and holidays....

There was a change of interest rate on January 24. Regular interest went from 1% to 1.1%. So, bonus interest dropped from 2% to 1.9%.

I get closer to the amount paid when I use 2% for Nov. 1, 2017 to Jan. 23, 2018 and 1.9% for Jan. 24 to Feb. 28. I used the effective date of the transactions from the monthly statements and not the posting date from the online banking web site.

With that, the amount of promotional interest Simplii paid is a bit higher than my calculations. sf-smile

Double checked the dates and amounts. Can't account for the extra bit of promotional interest Simplii paid me.

March 11, 2018
6:24 am
rfdm4g4g9
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Yeah the 1 % to 1.1 % and 2 % down to 1.9 % screwed up the simple calculations.

I had $ 0 in the account when I transferred the money to Simplii.

I was simply going to add up the regular interest ( 1 % ) they paid me at the end of each month and then double it ( 2 % ) to verify the bonus lump sum interest.

But now its 1 % + 2 % for few days and 1.1 % + 1.9 % for remaining days.

March 11, 2018
7:20 am
GR
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Another method to verify the bonus promo interest:
Calculate interest at 3% p.a. for the full period, based on daily balances, and deduct the basic interest amounts already paid at each month-end during the promo period. The difference should be the bonus interest paid in March.

March 12, 2018
6:28 pm
Norman1
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I think that's what Simplii did to calculate the Promotional Interest paid:

  1. 3% per annum for 120 days on the average of the daily closing balances minus the October 31 closing balance B0.
  2. Subtract the total regular interest paid already on Nov. 30, Dec. 31, Jan. 31, and Feb. 28.
  3. Add back 0.33878567% of B0, the part of the regular interest already paid that is from the existing money.

For me, that works out to within 4¢ of the bonus interest Simplii paid. sf-smile

But, that is a bit high. The calculation doesn't take into account the one day of regular 1.1% interest on the new money (for Feb. 28) that will be paid at end of March.

For any new money still there on Feb. 28, the return for that day would be 3% + 1.1% = 4.1%, unless the regular interest paid at the end of March is adjusted.

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