“Promotional Interest” is earned on Eligible Deposits (excluding Promotional Interest) | Tangerine Bank | Discussion forum

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“Promotional Interest” is earned on Eligible Deposits (excluding Promotional Interest)
September 28, 2024
4:20 am
usephrase
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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.

September 28, 2024
9:58 am
Dean
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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

sf-cool " Live Long, Healthy ... And Prosper! " sf-cool

September 28, 2024
11:51 am
Wrayzor
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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”).…

  

September 28, 2024
12:05 pm
usephrase
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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%.

September 28, 2024
1:34 pm
Loonie
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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.

September 28, 2024
2:03 pm
Dean
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.
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

sf-cool " Live Long, Healthy ... And Prosper! " sf-cool

September 28, 2024
3:13 pm
kesa
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at the end of the day the incremental monetary loss to the client is relatively inconsequential.

the reputational loss to Tang is far more significant.

September 28, 2024
3:15 pm
usephrase
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Thanks, everyone.

September 29, 2024
3:34 am
cgouimet
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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
September 29, 2024
4:52 am
usephrase
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cgouimet said

I 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.

September 29, 2024
5:53 am
cgouimet
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usephrase said

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.  

And Tangerine is owned by Scotia Bank ...

CGO
September 29, 2024
5:56 am
fabafter50
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usephrase said

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.  

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

September 29, 2024
7:43 am
usephrase
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cgouimet said

And Tangerine is owned by Scotia Bank ...  

Tangerine is a subsidiary of Scotiabank, a subsidiary is running separately.
Simplii is a division of CIBC, Simplii is a part of CIBC.

September 29, 2024
8:04 am
Lodown
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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"?

September 29, 2024
8:23 am
usephrase
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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%

September 29, 2024
9:16 am
InterestThis
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They would probably do this to hammer those who have 1 million in that account, that would make a difference. But if the deposit is around 100K its much less.
So Tang/Scotia is giving everyone a shave and a haircut.
Solution: buy shares of Scotiabank!

September 29, 2024
9:37 am
Dean
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.
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. sf-laugh

    Dean

sf-cool " Live Long, Healthy ... And Prosper! " sf-cool

September 29, 2024
10:55 am
Wrayzor
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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.

September 29, 2024
12:24 pm
Primus
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kesa said
at the end of the day the incremental monetary loss to the client is relatively inconsequential.

the reputational loss to Tang is far more significant.  

I don't think Tangerine has any more reputation to lose. 🙂

September 29, 2024
12:27 pm
cgouimet
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Primus said

I don't think Tangerine has any more reputation to lose. 🙂  

Perhaps we could get Poliver to boycott Tangerine and Scotia Bank ...

CGO
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