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New Tangerine Overdraft Protection - Details
August 13, 2015
3:50 pm
Yatti420
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Well details are out and looks like fees.. No more free coverage.. Before pre authorized transactions could draw up to $250 and be fee free of you paid back within a month.. Now it's like an LOC with a charge for usage+interest..

I don't think I'll accept.. I'd rather the transaction decline and I'll manually move money..

Good for people who have money in saving and can simply pay off before days end but I like Whoops protection better..

I poured a little booze out for the death of Whoops Protection.. A great feature.. Pushed aside by big bank competition..

Dear ...,

As promised, we want to share with you some more information about our new Overdraft Protection feature, which you can add to your Tangerine Chequing Account.

Overdraft Protection is designed to give you greater peace of mind by providing enhanced coverage for any occasional shortfalls in your Account.

Here are some details on how this new feature will work:

Covers most everyday transactions including cash withdrawals, pre-authorized payments, cheques and debit purchases.
Available limits starting at $250, up to a maximum of $5,000.
No surprises - we'll send you an email and let you know right away if your Account is in overdraft.
You won't get charged a fee for the coverage unless you use your Overdraft Protection. If you pay back the overdrawn amount on the same day, no fees or interest charges will kick in.
Where are the fees?

We're committed to ensuring that any fees we charge our Clients are fair. If the negative balance on your Account remains unpaid at the end of the day, you'll be charged interest and a $5.00 fee. If your Account is still overdrawn at the end of the month, you'll be charged another $5.00 fee at the beginning of the next month and subsequent months while your balance remains negative, until it's paid back in full. Interest, calculated daily at 19.00% (per annum) starts to accrue based on the end-of-day balance and will be charged to you monthly until the negative balance is paid back in full. At 19%, our Overdraft Protection interest rate is on the lower-end of industry standards, with other banks charging anywhere from 19%-22% interest.

You've been pre-approved

You've been pre-approved for $5000.00 in Overdraft Protection on your Tangerine Chequing Account, which will be available to you starting August 19, 2015. To accept your pre-approval, log in at tangerine.ca anytime between August 19, 2015 and November 17, 2015, and at the top of your Account Details page, you'll notice a prompt that gives you the option to have the feature added to your Account. Any negative Account balances will need to be cleared and brought back to $0 in order to add Overdraft Protection.

To learn more about the Overdraft Protection feature, visit our FAQs.

Thanks for taking charge of your money with us.

Sincerely,

Ian Cunningham
Chief Operating Officer, Tangerine

August 13, 2015
4:11 pm
james1900
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Tangerine was doing like this:
1 month ago: We are going to stop Whoops. Don't worry, over-draft protection will be much better than Whoops, ...
1 week ago: Few people used Whoops; Clients told us they wanted more than $250; ...
Today: YOU WILL BE CHARGED FEES, no matter how much you use. (This is the most important thing!)

August 13, 2015
4:27 pm
Yatti420
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james1900 said

Tangerine was doing like this:
1 month ago: We are going to stop Whoops. Don't worry, over-draft protection will be much better than Whoops, ...
1 week ago: Few people used Whoops; Clients told us they wanted more than $250; ...
Today: YOU WILL BE CHARGED FEES, no matter how much you use. (This is the most important thing!)

Exactly.. Incredibly disappointed.. I would be OK if they tacked on overdraft as an optional feature above $250..

August 13, 2015
4:56 pm
james1900
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Tangerine really did BAD in this round of communications. A month ago when I first received the email informing me over-draft protection will replace Whoops, I thought, they "might" charge interest only, since they tout they are forward thinking or forward banking. Yesterday, another email came in, still not explaining anything on fees. It's like that a boot will finally drop a few days later.

Ok, I saw fees in today's email. It only impressed me that THEY ARE CHARGING NOT ANY LESS FEES.

August 13, 2015
5:37 pm
Loonie
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We all know that with the introduction of fees, Tang has lined itself up with all the other Big Banks.

The best strategy is to set your finances up in such a way that you will never run into overdraft. If you are living paycheque to paycheque, get a small line of credit that you can draw on when necessary to bridge the gaps until you get enough set aside to cover such things yourself. With a line of credit, you just pay interest when you are using it.

When they're giving us 3% interest, I'm not going to complain about fees for overdraft protection, which I have never used in over 50 years of banking, despite student days, mortgage, student loans, periods of low and no income.

Makes sense for me that I continue to get the high rate of interest, which would be less likely if they were factoring in the cost of universal overdraft protection.

August 19, 2015
8:38 am
fireflicker
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So much for Tangerine being 'different' from the big banks. Since Scotiabank bought out ING, Tangerine is slowly going to roll out the fees now. They are just like the big banks!! I have been with this bank for many years, and now I am going to look into other banks, perhaps Presidents Choice.

As for the $5 fee per O/D PLUS interest, PLUS $5 each month it stays overdrawn is a joke. That's more than my friend pays at CIBC for overdraft protection!!

Tangerine, you just made up my mind to look elsewhere for all of my banking needs!!

August 19, 2015
3:15 pm
Loonie
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PC can't match 3%.
If you don't have any savings and are frequently at risk of overdraft, PC may make more sense to you as a customer.
If I were a banker, which I am not, I would think Tangerine's strategy of hanging on to its higher-asset customers may make sense. I wouldn't be surprised if they roll out more offerings to that group in future. I don't think they're done yet.

August 27, 2015
10:35 am
Yatti420
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I declined my pre-approval since I don't typically use overdraft unless it was free and I could replace the cash and not get charged.. I wont be paying 5$ per use.. New system is pointless..

September 2, 2015
12:44 pm
financialbroker
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It defiantly is not worth it it adds up to 20% apr if my math is correct, if you are approved for 5000$. which may be close with some credit cards apr rates, considering if you haven't miss a payment. I guess one way to stimulate the economy.

July 14, 2021
6:26 am
hwyc
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Q - If I have "funds on hold", will "overdraft protection" kick in when a withdraw exceeds my "total accessible funds"? If yes, how will the fees apply ... until the hold funds released?

July 14, 2021
10:30 pm
Norman1
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One possibility is that the overdraft protection increases "total accessible funds" by the approved amount and there will be no overdraft charges as long as account balance doesn't actually go below zero.

July 15, 2021
5:58 am
hwyc
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BTW this is an old thread. Peter has a much recent entry here buried under the articles tab, with a section on how to avoid overdraft fees at the end.

July 15, 2021
8:09 am
hwyc
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Reply from Tangerine Help on Twitter

Yes, if you have Overdraft and funds are on hold they will cover a withdrawal or purchase as long as it remains under your Overdraft limit. The way our Overdraft fee works is if you use your Overdraft but pay it back before 11:59pm, there will be no fee. If you don’t the fee is a onetime charge of $5 per month. This means that regardless of how much you use your Overdraft in a month, you will only be charged the fee once. If you have Overdraft going into the next month, you will be charged the $5 fee. We hope this helps! ^CG

Looks like another deposit is still required to satisfy their system that you pay back … even if it is another hold on fund.

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