July 2015: savings and TFSA drop to 0.80% | Tangerine Bank | Discussion forum

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July 2015: savings and TFSA drop to 0.80%
July 24, 2015
8:22 am
Peter
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First reported here: https://www.highinterestsavings.ca/forum/tangerine-bank/just-offered-3-at-tangerine-for-180-days/page-6/#post15451

The drop for both the regular savings account and TFSA is from 1.05% to 0.80%.

This is a 0.25% drop, whereas the average drop for other financial institutions on the site this week was 0.15%. More than half of the financial institutions on this chart now offer more than double the interest rate of Tangerine: https://www.highinterestsavings.ca/chart/

July 24, 2015
5:05 pm
Rick
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I'm sure they will have another offer, though probably not as rich as this one, when the current gimmick expires. The question is, do I empty out my account BEFORE the current one expires to create no balance in case the next offer is only on "new" money?

July 31, 2015
4:00 pm
Rick
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To answer my own question.... you cannot close the account BEFORE the bonus interest is paid. From their terms and conditions:

"Additional interest will be paid at the start of the month following the month in which it was calculated, provided the applicable Account was not closed before the payment of additional interest."

So if you transfer the balance BEFORE the additional interest is paid in the month following, you forfeit the bonus interest for the previous month.

July 31, 2015
4:55 pm
2of3aintbad
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don't close, just transfer out / withdraw most of the balance.

July 31, 2015
4:55 pm
rqs
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Rick... why do you equate TRANFERRING with CLOSING. I believe that if you left the account open but reduced the balance to $1 in the following month, before the interest is paid, you would still receive all the interest, to which you were entitled, calculated for the previous month,.

August 1, 2015
11:42 am
Rick
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rqs said

Rick... why do you equate TRANFERRING with CLOSING. I believe that if you left the account open but reduced the balance to $1 in the following month, before the interest is paid, you would still receive all the interest, to which you were entitled, calculated for the previous month,.

Makes sense. Guess I'm overly cynical and especially distrustful. When I transferred out my RSP savings account funds, I left a few bux in but they bumped it up to BOA and tried to close the account.

August 1, 2015
6:29 pm
Loonie
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RRSPs are different, though, and there is normally an option on the transfer form for Balance of Account, but also a place for you to estimate the amount. Most people probably do transfer the balance, so the staff probably assumed you intended the whole thing since it's difficult to estimate precisely.

So I don't think you'd have a problem with a savings account.

Whether it is a good idea though, is uncertain. This last time, they made the best offer to people who hadn't transferred their money out - yet - and allowed some more to get back in. Hard to say what will be the rules next time.

Please write your comments in the forum.