4:20 am

December 7, 2023

Tangerine: “Promotional Interest” is earned on Eligible Deposits (excluding Promotional Interest) .

Question: Do you think it is good idea that I will move out the Promotional Interest from Tangerine to Simplii to earn interest at Simplii? I do not know how Tangerine calculate on Eligible Deposits in this case.

9:58 am

January 12, 2019

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I wasn't aware of that **⬆** ... (i.e. Tangerine Promotional Interest not earning Promotional Interest going forward) ❗

If that's the case, then that would mean that the Promotional Interest portions only earn the Tangerine SA regular interest rate of **0.30%** .

If this is True, then I would agree that we should consider moving the Tangerine Promotional Interest portions to *'Much Greener Pastures'*. But I'm also wondering if/how the Tangerine SA software would recognize that.

OP ... When you get a chance, can you please refer us to the related wordings about this **?**

Thanks,

- Dean

* " Live Long, Healthy ... And Prosper! " *

11:51 am

March 14, 2023

This has been noted previously. Here is a snippet from one of the previous discussions, courtesy Norman1. And I would think that it should be quite easy for the interest calculator to be programmed to exclude any amounts designated as "Promo Interest".

Norman1 said

The current 5.75% offer excludes "Promotional Interest" from the definition of "Eligible Deposits". Definition of "Promotional Interest" includes regular interest:5. “Promotional Interest” is the interest earned on Eligible Deposits during the Promotion Period. “Eligible Deposits” for any day during the Promotion Period is the excess of (i) the sum of end-of-day balances in all Applicable Accounts per Applicable Account Type (excluding Promotional Interest) over (ii) the sum of end-of-day balances in all Applicable Accounts per Applicable Account Type as at December 4, 2023, to a maximum of $1,000,000.00 per Applicable Account Type (in the currency of the Applicable Account). ….

Promotional Interest is calculated at a “Promotional Interest Rate” of 5.75%, which is the sum of the applicable posted rate of interest listed on the Bank’s website on any given day (the “Posted Rate”) and an additional top-up rate of interest to make up the difference (the “Top Up Rate”). Therefore, Promotional Interest earned is the sum of: (1) interest earned on Eligible Balances calculated at the Posted Rate, and (2) additional interest earned on Eligible Balances calculated at the Top Up Rate (“Additional Interest”).…

12:05 pm

December 7, 2023

Does Tangerine know which new deposit is from external institution, which new deposit is Promotional Interest, which new deposit is from internal Tangerine account?

Tangerine Promotional interest earn 0.3% rate only.

Can we move out the new deposit of promotional interest to Simplii to earn higher rate 5%.

1:34 pm

October 21, 2013

I would assume there is nothing you can do about this problem..

Promo Interest earned is not segregated in such a way that you can access it on its own. If you withdraw an amount equal to the promo interest, Tang will likely still pay only the base rate on an equivalent amount that is still in your account, so you are no further ahead.

The only possible workaround that I can see is if you somehow persuaded Tang to deposit the interest directly to your chequing account, but I imagine they would refuse. They like it this way!

This makes it similar to the Simplii offers that only pay sometime after the end of the promo.

I don't remember the previous thread; perhaps i missed it.

Hubert pays compound interest on the one year quaorterly GICs, effectively increasing the posted "average" rate.

2:03 pm

January 12, 2019

3:13 pm

February 14, 2023

3:15 pm

December 7, 2023

3:34 am

February 7, 2019

Dean said

.

What Loonie just said⬆After further thought, I'm pretty sure Loonie has;

Hit-The-Nail-On-The-Head.It is what it is ... with no effective Workaround.

C'est la vie !Dean

I agree. When this first came up in discussion, I figured the promotional interest kinda became part of the starting balance ...

CGO |

4:52 am

December 7, 2023

cgouimet saidI agree. When this first came up in discussion, I figured the promotional interest kinda became part of the starting balance ...

I have 5% promotion at Simplii and 5.1% at Tangerine, my fund stays at Simplii.

Promotional offer term of Simplii is straight forward, no trick. Starting balance is always the amount on the end date of the previous offer or the date prior to the current offer.

I prefer Simplii because it is a division of CIBC, one of SIX big banks.

5:53 am

February 7, 2019

usephrase saidI have 5% promotion at Simplii and 5.1% at Tangerine, my fund stays at Simplii.

Promotional offer term of Simplii is straight forward, no trick. Starting balance is always the amount on the end date of the previous offer or the date prior to the current offer.

I prefer Simplii because it is a division of CIBC, one of SIX big banks.

And Tangerine is owned by Scotia Bank ...

CGO |

5:56 am

October 22, 2015

usephrase saidI have 5% promotion at Simplii and 5.1% at Tangerine, my fund stays at Simplii.

Promotional offer term of Simplii is straight forward, no trick. Starting balance is always the amount on the end date of the previous offer or the date prior to the current offer.

I prefer Simplii because it is a division of CIBC, one of SIX big banks.

Tangerine Bank is a Canadian direct bank that is a subsidiary of Scotiabank.

7:43 am

December 7, 2023

8:04 am

January 10, 2017

8:23 am

December 7, 2023

Lodown said

This seems to be a strange way of doing business....but of course with Tangerine anything is possible.Has anyone calculated their interest to confirm "Promotional Interest" earns "Regular interest" but does not earn "Promotional interest"?

I did not calculate for each day of balance in Tangerine account, but I found my promotional interest was less than I thought, I called Tangerine, he told me each of my deposit transactions, which was eligible deposit, which was not eligible deposit... he told me read term and condition of promotional offer. I believed promotional interest will earn regular interest, currently at 0.3%

9:16 am

November 5, 2022

9:37 am

January 12, 2019

.

**Yup ⬆**

Scotiabank's stock (BNS) had been in the doldrums for quite some time. But I (and many others) held on, partially because we were Paid To (BNS Dividend

= ~6%).

And finally with BNS's stock recent turnaround (⬆ ~20%, and still climbing), we're all Smilin' Now.

- Dean

* " Live Long, Healthy ... And Prosper! " *

10:55 am

March 14, 2023

Lodown said

Has anyone calculated their interest to confirm "Promotional Interest" earns "Regular interest" but does not earn "Promotional interest"?

I have done the calculation and it is true that promo interest doesn't earn the promo rate in future months. The loss of compounding on the promo interest is equivalent to ~0.1% reduction of the promo rate (annualized) using a 4.5% promo rate.

There have also been times where I've had the same eligible balance over multiple months and have seen the same $ amount of promo interest deposited for months of the same length.

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