Open account for 3 months of saving | Tangerine Bank | Discussion forum

Please consider registering
guest

sp_LogInOut Log In sp_Registration Register

Register | Lost password?
Advanced Search

— Forum Scope —




— Match —





— Forum Options —





Minimum search word length is 3 characters - maximum search word length is 84 characters

sp_Feed Topic RSS sp_TopicIcon
Open account for 3 months of saving
July 11, 2016
11:08 am
marcopelegrini
Member
Members
Forum Posts: 5
Member Since:
July 10, 2016
sp_UserOfflineSmall Offline

(Replicating the same question I asked on EQ Forum)

I have some savings to use as down payment for my condo. The closing date is Oct-08 so I have roughly 3 months that I could use to invest to get some interest.
What do you guys think? Is it worth it to open a new Tangerine Account and put the money there for three months?
To get the money out (let's say with a Bank Draft) is easy?

July 11, 2016
1:03 pm
James
Member
Members
Forum Posts: 188
Member Since:
January 30, 2009
sp_UserOfflineSmall Offline

If you're just looking for the highest rate for insured funds, I believe it is now the Luminus promo at 3.5% until Sept 15 insured by DICO (up to $100,000). You would need to pay for a bank draft to get the funds out though.

https://www.highinterestsavings.ca/forum/announcements/luminus-financial-promo-3-5/

My concern for you is only that you watch the timelines for when you need the money and make sure there will be no holds on the funds at the receiving institution to delay the down payment (this applies to whatever institution you want to save with).

July 11, 2016
5:36 pm
Loonie
Member
Members
Forum Posts: 9307
Member Since:
October 21, 2013
sp_UserOfflineSmall Offline

there is a fee for closing account within 90 days at Luminus. I think it's $100.
luminous only available to Ontarians, and it would be a lot easier for you if you can go there in person.
I'd stick with Tangerine, considering your circumstances.

James' caution is well-considered. Don't forget you will need a bank draft, not just a regular cheque, to close on your condo. Depending on which financial institution you are working with and where you live, you might encounter delays in getting this. I forget how Tangerine handles this sort of thing, but it's highly likely that you will lose several days' interest one way or another. And you don't want to trust it to be mailed or couriered to you, so you need to allow a few days for the money to get back to your external account.
You need to have the exit strategy all worked out in advance of the deposit, bearing in mind any limitations on amounts that can be withdrawn.

Oaken has 60-day term deposits. I think they give about 1.75%. It protects you from another rate drop in the interim. They are good to deal with too. I think it may be too late already for you to do the full 90 days, especially by the time you get the accountopened and the money moved in. But you can still have some money.

July 11, 2016
6:16 pm
marcopelegrini
Member
Members
Forum Posts: 5
Member Since:
July 10, 2016
sp_UserOfflineSmall Offline

Thank you very much guys, very helpful.

I think, given the circumstances, it's not worth the hassle or risk and I'll stick with the miserable 0.8 of my bank.

July 11, 2016
6:26 pm
Loonie
Member
Members
Forum Posts: 9307
Member Since:
October 21, 2013
sp_UserOfflineSmall Offline

You don't have to be stuck with the 0.8%.
You can, as AltaRed suggested, put it in a "high interest savings account" at any number of places and make perhaps $200 extra after taxes, depending on your marginal rate. You would have much better control over when you transfer it back to your regular account, on which you could draw the bank draft.

I would go with Oaken or Tangerine for this in your circumstances (if you can get a good rate from Tang) as they are easy to deal with. Don't close the account out, and you won't get stung for premature closing fees. I think Tang has no minimum.

Please write your comments in the forum.