Interest paid not new money for January 3-May 31, 2018 offer | Tangerine Bank | Discussion forum

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Interest paid not new money for January 3-May 31, 2018 offer
January 4, 2018
8:30 pm
Norman1
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I saw this term in the Terms & Conditions of my 2½% new money offer. Only regular interest (no Additional Interest) will be earned on any interest paid into the account during the period:

15. Any interest paid into an Applicable Account, including Additional Interest, will not be treated as a new deposit for subsequently calculating Additional Interest payments.

January 5, 2018
7:42 am
Bill
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Yes, I noticed that too. Not a big deal, just lose a bit of compounding as promo interest portion will not be calculated/earned on interest earned.

January 5, 2018
9:03 am
davidgeorge
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So we should move interest to other FIs with higher interest than Tang's 1% base interest

January 5, 2018
9:42 am
JenE
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Ooh, smart thinking, davidgeorge! I’ll do itsf-laugh

January 5, 2018
2:59 pm
Doug
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Norman1 said
I saw this term in the Terms & Conditions of my 2½% new money offer. Only regular interest (no Additional Interest) will be earned on any interest paid into the account during the period:

15. Any interest paid into an Applicable Account, including Additional Interest, will not be treated as a new deposit for subsequently calculating Additional Interest payments.

  

They've always done this, or have for the past couple years. Look back. It's there. Promotional interest, or regular interest, is not counted as a "new money" for the purposes of the calculation. You still get the compounding effect in terms of the regular interest compounding on the paid promotional interest but not that "extra" benefit.sf-cool

Cheers,
Doug

January 5, 2018
3:02 pm
Doug
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JenE said
Ooh, smart thinking, davidgeorge! I’ll do itsf-laugh  

LOL, that's too much extra work. Gosh darnit, just leave it where it is for Pete's sake (no relation to Peter, the board administrator). 😉

Plus, if you do that, it'll (likely) be treated as a withdrawal in terms of determining your "additional balance". So basically, as I suspect, in terms of promo interest, it doesn't earn promo interest on itself but it does count against your balance in terms of what earns additional interest. Hope that makes sense.sf-cool

Cheers,
Doug

January 5, 2018
7:31 pm
Norman1
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As Doug described, withdrawals may be considered withdrawals of new money instead of interest paid under the current offer.

In a 2016 Tangerine offer, it was found that withdrawals were considered to be against principal first. sf-surprised

January 6, 2018
10:26 am
Doug
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Norman1 said
As Doug described, withdrawals may be considered withdrawals of new money instead of interest paid under the current offer.

In a 2016 Tangerine offer, it was found that withdrawals were considered to be against principal first. sf-surprised  

Thanks Norman for making sense of my somewhat "circular" description. It does get a bit confusing, technical and highly "legalistic", though. 😉

You've clarified my thinking well, I think. Basically, "promo interest" isn't deemed "new money" for additional "promo interest"; however, much like the way credit card issuers apply payments to existing balances, any "withdrawals," likely because you can't differentiate (easily) what that withdrawal is from, it reduces your "new money" balance.

I'd be highly skeptical and even go so far as to advise against withdrawing the "promo interest". Nice try, though! sf-cool

The banks have become "wise" to us "rate chasers," hence the T&C that are now several pages in length when they used to only be about 10 bullet points or less than two thirds of a page. 😉

Cheers,
Doug

January 6, 2018
2:23 pm
JenE
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Gosh darn it - stymied again!sf-confused

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