Has Tangerine Promotional Interest Calculation Changed ? | Tangerine Bank | Discussion forum

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Has Tangerine Promotional Interest Calculation Changed ?
November 4, 2022
4:20 am
AlainJF
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Unless my math is wrong, I have recently observed that the promotional rate at Tangerine does not apply to all interest deposit (regular + promotional).

This was a surprise to me. Something new to me.

Verifying the fine print, it seems that Tangerine added an exclusion: "...“Eligible Deposits” for any day during the Offer Period is the excess of (i) the sum of end-of-day balances in all Applicable Accounts per Applicable Account Type (excluding Promotional Interest)..."

This exclusion only explains part of the observation, as it seems that all interest deposit (regular + promotional) are excluded.

While it only makes a very small money difference to me, it does not match with my previous experiences with Tangerine promotional rate.

Anybody else observe the same thing?

November 4, 2022
5:15 am
Bruford
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So does it mean they don't pay interest on the interest earned?

November 4, 2022
5:21 am
BSGJ
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Tangerine's "smoke and mirrors" show.

I haven't taken the time to do the calculations but my rough estimates on monthly interest have never been close to their interest deposits for either the regular or promotional interest. Therefore, I threw the towel in on their promotional gimmick's a number of years ago and only use my account for the ease of moving money to other CU's and FI's.

Personally, it was too hard to track the true interest earned while other institutions made it simple to follow the money earned. I made one call to their call centre and the representative wobbled throughout the 45 minute conversation. To me, that spoke volumes about their promo interest program.

November 4, 2022
6:33 am
hwyc
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AlainJF, are you talking about their "new money" promo? I would be surprised if interest deposits count as Eligible Deposits. BTW, I search for "excluding Promo" in my T&C but cannot find the text.

There is a scenario they didn't say clearly to me. Interests are calculated & added to the balance monthly during the promo period, let say $10. If I make a $10 withdraw later from the account, am I withdrawing the interest amount, or will the eligible balance drop by $10 ?

November 4, 2022
6:51 am
COIN
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Tangerine is still easier to understand than Simplii where you have to wait until about 15 days after the promo ends to get your promo interest.

November 4, 2022
8:28 am
BSGJ
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COIN said
Tangerine is still easier to understand than Simplii where you have to wait until about 15 days after the promo ends to get your promo interest.  

I agree. I completely stopped using Simplii for this exact reason.

November 5, 2022
7:11 am
AlainJF
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Unlike some of the valid comments above, regardless of the FI, and with some efforts sometimes, I always figure out their calculations. (8 digits of precision, or applicable 2 digits rounding). There are obviously variations from FI to FI, but usually each FI sticks to their method from month to month.

Regarding my initial question on the subject of this post, based on personal past experiences, Tangerine was applying the Promotional Rate on all money above the initial reference amount.

It seems that they do not apply the Promotional Rate on any interest added anymore. (Regular and Promotional). The fine-print mentions the exclusion of the Promotional Interest, but not the Regular. This is where I suspect a gap between their calculation and what is advertised.

My question was if anybody else observe the same thing?

November 5, 2022
8:31 am
Norman1
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"Promotional Interest" is excluded in the 4.3% New Money Savings Campaign offer (October 4 to December 31) I received. "Promotional Interest" is all the interest earned on the "Eligible Deposits":

5. “Promotional Interest” is the interest earned on Eligible Deposits made to Applicable Accounts each day during the Offer Period. “Eligible Deposits” for any day during the Offer Period is the excess of (i) the sum of end-of-day balances in all Applicable Accounts per Applicable Account Type (excluding Promotional Interest) over (ii) the sum of end-of-day balances in all Applicable Accounts per Applicable Account Type as at October 3, 2022, to a maximum of $1,000,000 (in the currency of the Applicable Account), subject to the exclusions in Section 10 below.

That is further discussed later in the terms:

8. A Promotional Interest Rate of 4.30% will apply to Eligible Deposits under this Offer. Eligible Clients will receive Promotional Interest in two separate interest payments: (1) interest calculated at the Posted Rate, (2) an additional interest payment that represents the excess of Promotional Interest over Posted Rate interest (“Additional Interest”). For clarity, Promotional Interest equals the sum of Posted Rate interest and Additional Interest. Payment of Additional Interest will be made to the Applicable Account at the start of the month following the month in which it was calculated. The Posted Rate may change at any time without prior notice, resulting in a corresponding change to the Additional Interest rate so that the Promotional Interest Rate remains unchanged. Notwithstanding the above, the Bank may change the Promotional Interest Rate at any time without prior notice.

Confusion between "Promotional Interest" and "Additional Interest"?

November 5, 2022
10:53 am
hwyc
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With Norman1's input, I am now able to locate the text as well.

Back to AlainJF's #1, it is not a recent addition. I think you can go to "Bonus & Contest" under "Profile & Settings" to look for past promo Offer Terms. In my case, I had several *New Money Savings Campaign*. The exclusion text in 5. was there as far back as March 2020

Hope that helps. ...as for the math, I am too old to get into that.

November 5, 2022
3:02 pm
savemoresaveoften
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Vow I never paid attention to that fine print. So any interest posted each month is earning zero effectively !

November 5, 2022
3:37 pm
MG
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Maybe you should just move the Promotional Interest to your chequing account for a day or two and then move it back into the savings account? sf-confused

November 5, 2022
10:23 pm
BlueSky
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hwyc said
AlainJF, are you talking about their "new money" promo? I would be surprised if interest deposits count as Eligible Deposits. BTW, I search for "excluding Promo" in my T&C but cannot find the text.

There is a scenario they didn't say clearly to me. Interests are calculated & added to the balance monthly during the promo period, let say $10. If I make a $10 withdraw later from the account, am I withdrawing the interest amount, or will the eligible balance drop by $10 ?  

My understanding is that there are a couple of factors here in interest calculation. Assuming the everyday rate is 2.00%, promo rate is 1.50%.
It appears that Tang reference point, in 'new money', is any additional money added to the account balance after the start of the promotion. Ex. if one had $10 before the promo rate activation, then added money in excess of the $10, that will earn him the promo rate, which is every day advertised rate + the bonus rate:
1. If one had $10 before the promo rate activation, then deposited
$100 during the promo period, he will have earned 2.00% on the $10 and 3.50% on the $100 (2.00%+1.50%);
2. If one had $10 before the promo rate activation, then deposited $100, then withdrew $30, he will have earned 2.00% on the $10, and 3.50% on the amount, up to the $100. In this case, up to the point the $100 is untouched, or the same rate for what is remaining from the 'new money' in the event of a withdrawal, say $70;
Of course, this is calculated daily, on the balance in the account. I believe Tang subtracts, in its calculation, the added interest it pays to the account.

November 6, 2022
2:56 am
RetirEd
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...and note that the promotional interest is added to the FOLLOWING month's balance, skipping one compounding for even very small amounts.

Seas of sleaze.

RetirEd

November 6, 2022
6:53 am
AlainJF
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Thanks for the responses. By reviewing previous specials, I discovered that the fine print is different for the different similar specials...

Per the text below, the "Limited Time Offer" includes ALL interest in the calculation...

On the other side, the "New Money Savings Campaign" is excluding interest in the calculation. For better clarity, an "ALL" could have been added to the text:

“Promotional Interest” is ALL interest earned on Eligible Deposits made to Applicable Accounts each day during the Offer Period.

Conclusion: It is changing from one offer to the other. Wow.

Limited Time Offer
"Additional Interest" is 1.00%. Additional Interest is added to the applicable posted rate of interest listed on the Bank's website (the "Posted Rate") to calculate the total amount of interest payable under this Offer. (For example, if the Posted Rate were 1.05% and the Additional Interest were 0.45% then: Posted Rate of 1.05% + Additional Interest of 0.45% = Offer of 1.50%). Any change to the Posted Rate will result in a corresponding change to the Offer. Additional Interest and/or Posted Rates may change at any time without prior notice. Eligible Clients will receive the Offer in two separate interest payments, one based on the Posted Rate and a second based on the Additional Interest rate.

New Money Savings Campaign
“Promotional Interest” is the interest earned on Eligible Deposits made to Applicable Accounts each day during the Offer Period. “Eligible Deposits” for any day during the Offer Period is the excess of (i) the sum of end-of-day balances in all Applicable Accounts per Applicable Account Type (excluding Promotional Interest) over (ii) the sum of end-of-day balances in all Applicable Accounts per Applicable Account Type as at September 7, 2022, to a maximum of $1,000,000 (in the currency of the Applicable Account), subject to the exclusions in Section 10 below.

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