OTR - Tangerine Savings Account rate 0.70% effective March 7, 2020 [down to 0.40% March 20] | Tangerine Bank | Discussion forum

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OTR - Tangerine Savings Account rate 0.70% effective March 7, 2020 [down to 0.40% March 20]
March 7, 2020
6:23 am
hwyc
GTA
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Down from previously 1.05%

Also refer to GIC chart for Tangerine GIC rates change

In fact, 0.70% is the lowest Tangerine rate ever recorded since 1997

March 7, 2020
10:46 am
Doug
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hwyc said
Down from previously 1.05%

Also refer to GIC chart for Tangerine GIC rates change  

That's more of a drop than I thought they'd do. That means if you currently have a 2.75% special offer net new money promo offer, your combined base + promotional rate is 2.40% effective from today. sf-cool

Cheers,
Doug

March 7, 2020
11:44 am
krwilson
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"A Promotional Interest rate of 3.00% will apply to Eligible Deposits under this Offer. Eligible Clients will receive Promotional Interest in two separate interest payments - (1) interest calculated at the Posted Rate, (2) an additional interest payment that represents the excess of Promotional Interest over Posted Rate interest (“additional interest”). For clarity, Promotional Interest equals the sum of Posted Rate interest and additional interest. Payment of additional interest will be made to the Applicable Account at the start of the month following the month in which it was calculated. The Posted Rate may change at any time without prior notice, resulting in a corresponding change to the additional interest rate so that the Promotional Interest rate remains unchanged. Notwithstanding the above, the Bank may change the Promotional Interest rate at any time without prior notice."

I hope I am reading this right for I still expect to receive 3% until May 31st as they offered. Tangerine states it should increase the promo rate to keep it at 3%.

March 7, 2020
11:51 am
Doug
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krwilson said
"A Promotional Interest rate of 3.00% will apply to Eligible Deposits under this Offer. Eligible Clients will receive Promotional Interest in two separate interest payments - (1) interest calculated at the Posted Rate, (2) an additional interest payment that represents the excess of Promotional Interest over Posted Rate interest (“additional interest”). For clarity, Promotional Interest equals the sum of Posted Rate interest and additional interest. Payment of additional interest will be made to the Applicable Account at the start of the month following the month in which it was calculated. The Posted Rate may change at any time without prior notice, resulting in a corresponding change to the additional interest rate so that the Promotional Interest rate remains unchanged. Notwithstanding the above, the Bank may change the Promotional Interest rate at any time without prior notice."

I hope I am reading this right for I still expect to receive 3% until May 31st as they offered. Tangerine states it should increase the promo rate to keep it at 3%.  

It's hard to see them doing that. When the base rate increased in a prior promotion (a year or two ago), they adjusted the Promotional Interest Rate by the corresponding amount so that the total interest paid didn't increase. They might've changed their wording (they're very sneaky that way), but do note they can change the promotional interest rate at any time without advance warning or notice of any kind. 🙂

Cheers,
Doug

March 7, 2020
11:56 am
Doug
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For what it's worth, I read, "The Posted Rate may change at any time without prior notice, resulting in a corresponding change to the additional interest rate so that the Promotional Interest rate remains unchanged," as there being three interest rates:
- Base rate (A)
- Additional rate (B)
- Promotional rate (Sum of A+B)

which is probably how you read it. However, that wording does clarify the earlier ambiguous wording such that we essentially get screwed out of additional interest when the base rate is rising as there is no change to the Promotional rate because the Additional rate would fall by the corresponding rise in the Base rate.

Thus...

Moral of the story... avoid Tangerine net new money promotions when the BoC is on a rate rising trend. 🙂

Cheers,
Doug

March 7, 2020
12:32 pm
GR
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Tangerine CSR today confirmed that the 2.75% promo interest rate remains unchanged and will not be affected by the reduced base rate.
If anyone finds out differently, please post.

March 7, 2020
12:42 pm
gicjunkie
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GR said
Tangerine CSR today confirmed that the 2.75% promo interest rate remains unchanged and will not be affected by the reduced base rate.
If anyone finds out differently, please post.  

I concur. The terms of the special rates are as follows:

"The Posted Rate may change at any time without prior notice, resulting in a corresponding change to the additional interest rate so that the Promotional Interest rate remains unchanged"

March 7, 2020
1:17 pm
Doug
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GR said
Tangerine CSR today confirmed that the 2.75% promo interest rate remains unchanged and will not be affected by the reduced base rate.
If anyone finds out differently, please post.  

Okay, thanks. Just to clarify, I have also previously clarified that in the event the base rate increases, the combined promotional rate also does not change.

So my earlier comment at post # 5 stands...we're functionally screwed in a rising rate environment, but at least (somewhat) protected in a falling rate environment, with respect to promotional rates. I say somewhat because, while the CSRs have thus far confirmed the rate will not change, the T&C does allow for changes at will.

Cheers,
Doug

March 7, 2020
3:50 pm
Vatox
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I find it interesting that Tang base rate dropped to 0.7% from a 50 bps drop at the BoC to 1.25%! Back when the BoC rate was just half a percent, Tangerine was 0.8%. Or am I not remembering correctly?

Edit: just checked. BoC rate was 0.5% in July 2015 and Tang was 0.8%

March 7, 2020
6:00 pm
Loonie
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Maybe their model is not BoC, but Scotia.
Dos anyone know what Scotia is offering?

March 7, 2020
6:07 pm
Adam1
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Nice. That's the lowest rate I've seen since I opened my account (May 2017). From what I recall, at the time it was 0.8% with the new customer promotion of 2.4% for the first few months.

Fortunately I don't keep any money in my Tangerine savings account. For me it's only purpose is for money-back reward deposits, which are e-transferred out to Motive (2.8% for now) as soon as received. Tangerine's earlier rate of 1.05% is pretty low, still.

Adam

March 7, 2020
6:20 pm
Adam1
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Loonie said
Maybe their model is not BoC, but Scotia.
Dos anyone know what Scotia is offering?  

For savings, Scotia has the Momentum Plus Savings account that doesn't appear to have changed as of now. That's strange how Tangerine changed but not Scotiabank. Their regular interest rate is 1.00% and no minimum balance, so that's higher than Tangerine, but obviously that could change soon. They have premium periods within the savings account, which are similar to cashable GIC's except you can add money and interest is prorated depending on how long the additional deposits are in the account. You get bonus interest at the end of the premium period if no withdrawals are made in the term (higher bonus interest rates for longer periods). Money is not locked in at all and can be withdrawn anytime, instantly. It's too much to explain, so I'll provide links.

https://www.scotiabank.com/ca/en/personal/bank-accounts/savings-accounts/momentum-plus-savings-account.html

https://www.scotiabank.com/ca/en/personal/rates-prices/savings-account-rates.html

Adam

March 9, 2020
9:21 pm
picassocat
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The Scotia Momentum Plus Savings account offers a bit more (0.3%) in order to lure people in, in the hope they will treat their savings like a GIC ( i.e. incite them not to withdraw any money to get a little more interest). TD offers .01%, RBC 0.650%, BMO 0.2% base rate, CIBC 0.15%, National Bank 0.65%

The big banks are cheap.

March 17, 2020
9:36 am
Bud
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Do lower base regular interest rate on the account affect the overall promotional rate or not? For example, for someone gettin 2.75% if the regular rate drops from 1 to .50 will they get 2.25% now on the promo till the end of May?

March 17, 2020
12:49 pm
canadian.100
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Bud said
Do lower base regular interest rate on the account affect the overall promotional rate or not? For example, for someone gettin 2.75% if the regular rate drops from 1 to .50 will they get 2.25% now on the promo till the end of May?  

Even if the regular base rate reduces, the promo rate remains until the term of the promo ends. I have associates with 2.5% and 2.75% both of which continue at the full rate (2.5 or 2.75) although the base rate dropped.

March 17, 2020
1:52 pm
Bud
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that means theyre still gettin 2.5 n 2.75 even though the base rate dropped?

March 17, 2020
2:08 pm
Alexandre
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Bud said
that means theyre still gettin 2.5 n 2.75 even though the base rate dropped?  

As of this moment, we still do. Just checked, web site still confirms I have "special offer at 2.75%" while their regular rate is .7%.

March 18, 2020
2:42 pm
hwyc
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Just realized it is now only 2.50% on the *first* Tangerine account on the landing page ... pretty sure it was 2.75% before

March 18, 2020
5:37 pm
picassocat
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It was 2.75%, it changed I think today.

March 20, 2020
6:06 am
krwilson
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I see that Tangerine is offering 0.4% now on savings account.

Thanks for the notification Tangerine....NOT!

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