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New Promo at Tangerine
August 31, 2014
10:10 pm
Rick
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3% until Nov 30 on all deposits made between Sep 1 and 15
Best rate I've seen them offer in a looooong time

August 31, 2014
11:04 pm
Jack Manning
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Rick, I guess this is good for money that is going to be in savings account anyway or money going to be used in 3 months. It could also be used for a short term parking your money place to invest in something else later on.

For a 90 day period starting September-1-2014, 3.00% is a very competitive rate. I know Loonie was looking for some higher RRIF GIC rates to invest some money coming due.

This 3.00% Tangerine deal is good for TFSA, RRSP, RRIF savings accounts as well.

The main problem is for 90 days or less it does not really give longer term income one can count on such as for 5, 6, 7 years that retirees may be looking for.

August 31, 2014
11:28 pm
Loonie
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Thanks, Rick, for getting this to us right at the beginning of the offer.

They must be getting desperate!sf-surprised Maybe they've lost a significant amount of customers/money because of their generally low-ish rates and since being taken over by Scotia. I personally know someone (not on this board) who just moved a maxed-out TFSA out of there. Maybe competition is starting to bear some fruit. I hope so.

It won't work for me, and I would be hesitant about it for registered accounts for 2 reasons. First, you need to beware of transfer-out fees from the institution you are leaving (although could be a good parking spot for a new deposit), which would wipe out your bonus. Second, it takes time to get the money moved in a registered plan, often about a month, so you could lose up to half the benefit this way. And, of course, then you have to move it again, so not likely worth it. On the plus side, Tangerine does not charge a transfer-out fee (yet), so you would not pay any fee twice, but you would need to have a plan from the get-go as to where you ultimately wanted to move the account, which is difficult to plan 3 months ahead.

Thanks for thinking of me. Jack.sf-smile My GIC doesn't come due until almost the end of Sept, so I couldn't use this offer for that purpose.

I think that what it is good for is for one's emergency account or short-term goal-oriented savings such as saving for a car or down payment. For retirees, depending on what your financial planning system is, your cash account could be as much as the 100,000 maximum; so, you could consider moving it over to Tang for 3 months.
It matches Peoples Trust TFSA Savings rate, for people who don't like Peoples. You could put money into the TFSA at Tangerine then move it elsewhere after the offer ends with no transfer-out fees from Tang.

August 31, 2014
11:34 pm
Loonie
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"The Tangerine Back-to-school Savings interest offer of 3% is available on all net new deposits made between September 1, 2014 and September 15, 2014 to a maximum of $250,000.00, (the "Offer") is to qualifying Tangerine Savings Accounts (Savings), Tangerine Retirement Savings Accounts (RSP Savings), Tangerine Retirement Income Fund Savings Accounts (RIF Savings) and Tangerine Tax Free Savings Accounts (TFSA Savings). The interest rate, current as of September 1, 2014, is an annualized rate, calculated daily and paid monthly. The Offer and interest rates are subject to change without notice. For full details visit http://www.tangerine.ca/backto.....conditions "

NOTE:
Does not apply to deposits to chequing accounts, but DOES apply to money moved from a Tangerine Chequing account to a Tangerine Savings account.
Available to existing clients.
Maximum deposit which can benefit from this deal is $250,000 for "each Applicable account" (which would put you over the CDIC limit if you went to the max.). Applicable accounts are defined as: "Tangerine Savings Account (“Savings”), Tangerine Tax-Free Savings Accounts (“TFSA Savings”), Tangerine Retirement Savings Accounts (“RSP Savings”) and Tangerine Retirement Income Fund Savings Accounts,"
Always read all the fine print first.

September 1, 2014
8:32 am
Rick
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Jack Manning said

Rick, I guess this is good for money that is going to be in savings account anyway or money going to be used in 3 months. It could also be used for a short term parking your money place to invest in something else later on.

For a 90 day period starting September-1-2014, 3.00% is a very competitive rate. I know Loonie was looking for some higher RRIF GIC rates to invest some money coming due.

This 3.00% Tangerine deal is good for TFSA, RRSP, RRIF savings accounts as well.

The main problem is for 90 days or less it does not really give longer term income one can count on such as for 5, 6, 7 years that retirees may be looking for.

Totally agree. Great for liquid cash you keep in an emergency fund or savings. Depending on how much you put in, current interest rate where you're transferring from, fees may well cancel any benefit. If you haven't maxed out our RSP or TFSA for the tax year yet, might be worth it as they have no transfer out fee as well. Tangerine, going back to ING, has always been into gimmicky, short term promotions to attract funds in the hope it will be too much of a hassle to transfer them out once the promo is over. I've said before, wish they would just go back to above average, competitive rates on a permanent basis, like they had when they first started up. For me, not sure if the hassle to transfer out to my hub institution then into Tangerine, then back to my hub before back to my main is worth the less than hundred bux in extra interest. If you have a 100g or more sitting in an account somewhere, might be more of an incentive.

September 1, 2014
9:21 am
musicalmaestro
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This "sale" makes me shudder to think what might be happening to the tfsa kickstart account that would normally overlap with this offer. Love the rate, but not necessarily the short term. Like others have said, wish they'd go back to being on top of the rate game. For now I guess I'll be moving my money from rbc's surprise 2% offer back to Tangerine for an extra 1%.
Note to self, when tangerine posts on Facebook they have a surprise coming, get your money out so balances are 0, and can be added as new net deposits.

September 1, 2014
9:38 am
GS1
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Rick said

[snip]

For me, not sure if the hassle to transfer out to my hub institution then into Tangerine, then back to my hub before back to my main is worth the less than hundred bux in extra interest. If you have a 100g or more sitting in an account somewhere, might be more of an incentive.

Rick

It is worth it for me to do the moves necessary, just to show the banks that higher interest attracts funds.

Today I started to move $1k from Implicity (currently earning 1.9%) to RBC to get it to Tangerine.
Today I started to move $60k from PC Financial (currently earning their bonus rate of 2% till October 31st if I recall correctly) to RBC to get it to Tangerine.
Today I started to move $15k from RBC (currently earning their bonus rate of 2% til October 31st, again if I recall correctly) to Tangerine.

For each $5k moved from a 2% account to Tangerine's 3% account one earns an extra $0.137 per day. Not worth the effort many will say. That $5k earns an extra $12.33 for the full 90 day period. The effort to initiate the transfers is minimal and easily tracked by me in Quicken. I am fortunate to have "spare cash" lying around -- but am retired -- and so, have a considerably reduced income compared to when I was working. My "spare cash" moved to Tangerine would earn me an extra $187.40 if I were to have had the money available today. As well, the "other guys'" promotions ran out October 31st so there is an added benefit to making the move to Tangerine now.

I would love to be a fly on the wall tomorrow when RBC, CIBC and PC Financial and possibly others see the mass migration of funds towards Tangerine/BNS.

Greg

September 1, 2014
10:29 am
Loonie
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Not too shabby, Greg! .
Definitely worth a few minutes of your time.

Rick, according to my records, ING/Tang hasn't offered 3% since 2008, at least as a regular rate, and that didn't last too long. Before that, it was 2001.

Tangerine markets aggressively, so the word will get out. I'm sure that every financial institution in the country will be affected to some extent. The ones who still have a smile on their faces will be at BNS.

It could be an exciting winter after all!sf-wink

September 1, 2014
11:43 am
Rick
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Ok...I bit. Started a transfer and set up the next two ASP contributions to Tangerine. free money is free money.

September 1, 2014
2:24 pm
Jack Manning
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Loonie, I suspect too that Tangerine is losing deposits or maybe not as much deposits are coming in compared to a month, quarter, year ago. Whatever benchmark or comparison they are using.

Obviously the TFSA savings account will get the most benefit since there is no income taxes due which can be at least 25%. Unless someone is in a much higher tax bracket 35% to 50%, RRSP contributions to RRSP savings accounts are in first place there.

Rick, cash for short term savings anyway looks to be the best place for this 3.00% deal. Maybe Tangerine thinks all rates available will be lower in 3 months and hopes accounts will stay there. Most people are not that gullible and will move money to where they are paying much higher rates.

September 1, 2014
3:03 pm
Jack Manning
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It will be interesting to see what Oaken Financial which has a 1.75% current savings account rate and other financial institutions do now.

However, Oaken does have cashable GIC's as high as 1.75% and 2.00% locked rates for 1 year for those depositors that don't need complete liquidity for 30 and 90 days and want a stable rate they can count on.

Meridian C.U., Community Trust Company, First Ontario C.U. etc. all have 1.75% savings account rates as well but Manitoba credit unions seem to have most of the highest savings account rates today.

P.C. Financial maybe doing a matching promotion like Tangerine if they need to.

September 1, 2014
7:25 pm
Loonie
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Having rejected the notion of a "fruit bank", as they call it in their ads, it might be psychologically difficult for Oaken to compete! They wouldn't want to be too obvious about the fact that this previously-rotten fruit had gotten the better of them.sf-wink

I don't see the TFSA working for very many people, as you can already get the same deal with Peoples, which is also CDIC-insured. It might be good for people who have never heard of Peoples, as it will get more publicity. I doubt that anyone who has their TFSA with Peoples will switch. There is the possibility that rates could go down at Peoples but this would be a really bad time for them to choose to do that.

One of the things that is curious about this offer is that it only applies to deposits made over a very short 2-week period. I wonder what the psychology behind that is. Perhaps they want to get the maximum publicity out of it, but are afraid of how much it might cost them if they let it run any longer. They might be thinking that it will still help their profile if the people who didn't hear about it soon enough or didn't act fast enough are disappointed, as they will be left with the impression that Tang can be more competitive.

I called Tang today. I was told that if you are transferring-in an RRSP or RIF (and presumably also a TFSA although I did not ask), they will give you the bonus rate effective the date you initiated the transfer. This is more than fair considering that it can take a month or so for these transfers to take place. Please make your own inquiries to confirm this if that is of interest. Much as I often find their rates inadequate, it is such a pleasure to talk to a customer service agent who knows their job. The one I had today was literally able to do 2 things at once, by passing off a problem he was having with my account to someone else to resolve while continuing to do business with me on my next issue. He then went back to the first issue which, by then, had been resolved. Remarkably efficient.

We reviewed our family finances this afternoon and figured out how we could take advantage of this offer by rearranging things. It will make for a nice bonus heading into the holiday season.

September 1, 2014
8:29 pm
Jack Manning
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Loonie, we don't get fooled by advertising no matter what they are trying to convince us to do. As for 3.00% for 3 months, no matter if it is a savings account, term deposit, GIC in an RRSP, TFSA, RESP, RRIF etc. it has only one purpose.

This is liquidity. It is nothing more. Tangerine and others that have higher variable savings rates at the moment are good for easy access to money, cash. We will stick with 3.00% TFSA's, RRSP's, RESP's etc. where we can find them within CDIC, DICO and other deposit insurance limits.

We are in a new era of lower interest rates compared to even 5 to 7 years ago and expecting anything more from short term, temporary rate promotions are nothing new. In 3 months rates will not increase much anyway you look at it.

The question is can they go lower. Many have said no but they keep getting lower.

September 1, 2014
8:52 pm
Jack Manning
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Loonie, I noticed that Tangerine now, ING Direct earlier have these 3.00% and higher rate promotions lasting no more than 3 months or 90 days. There must be some type of break even or profit formula that they can only use to make sure they are always on the plus size.

Anyway, to each his or her own where and how depositing money, rate, term, variable or fixed, temporary or permanent etc. We are just tired of being played for fools for many years now.sf-frown

September 1, 2014
9:15 pm
Loonie
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I share your misgivings, Jack.

For us, right now, the promotion is useful. I moved some money from BNS to Tang today, and thought about how ironic it was.

While it's true that longer-term rates are still going down, short term rates are more competitive than they were even a few months ago. You can't get much more short term than a deal that is only open for 2 weeks!sf-surprised (Maybe they'll extend it, depending on response?)

We'll see what's happening in 3 months, I guess. Perhaps this promotion is directed at the people who have money "sitting on the sidelines", hoping for a better deal later and/or afraid to lock it all in at historically low rates.

September 1, 2014
9:28 pm
Jack Manning
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Loonie, I hear what you are saying. It is a desperate move for both parties involved, clients and banks, financial institutions. No matter how you look at in 2010, I remember from all types of media hyping up and warning about rising interest rates, short to long. The U.S. economy was picking up and improving.

The exact opposite has happened, 4%, 10 year U.S. bond rates are now 2.33% almost half and U.S. short rates are just as low as for 4 years ago. ING Direct rates were 1.30% just the same as today 4 years ago.

We will be lucky to go back to 4.00% 10 year bond rates in 5 years but I think it is going to take longer. If we see a Canadian economy and housing market weaker than the U.S. then we will have lower rates like today compared to U.S. bond rates.

Loonie, look at this, 2014 Canada bond rates, 5 year 1.52%, 10 year 1.99% versus 2010 Canada bond rates, 5 year 3.09%, 10 year 3.66%.

September 1, 2014
10:04 pm
Loonie
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I don't remember the details but I do remember we were promised sunshine and roses a few short years ago. Perhaps they had to say that so that people didn't go ballistic over the bailouts? Or perhaps they were "true believers".
It all goes to prove that nobody ever knows what's going to happen except people who are operating illegally to "make" things happen, timing anything is probably an exercise in self-deception, and laddering and diversification are the best defenses. How does that sound?
They're still telling us the US economy is improving...

September 1, 2014
10:11 pm
Jack Manning
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Loonie, I know one thing for sure about interest rates. Governments, banks and other financial institutions, corporations have the most to gain by keeping rates low for many more years.

September 1, 2014
10:50 pm
Jack Manning
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Loonie, I would not be surprised that at least 30% of the current value of U.S. stock markets are at current market values because 10 year U.S. bond rates are 2.33% and U.S. 30 year bond rates are 3.09% today in 2014.

If 10 and 30 year U.S. bond rates were 4.00% and 4.75% like back in 2010, we would be probably at a 12,000 Dow Jones, 1,400 S&P 500, 3,300 Nasdaq.

September 2, 2014
9:46 am
rhvic
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By my math, putting 100K into Tangerine for three months at 3% instead of leaving it in say Hubert at 1.95% will earn me an extra $260 or so in interest. That certainly makes it worthwhile to move 100K (but not more, I do not want to exceed CDIC) over to Tangerine. Of course, I will pull it out of Tangerine again say by Nov. 25, so that the balance is low again in case they have yet another attractive promo on 'new' deposits after Dec. 1.

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