Savings account and TFSA rates down to 1.05% | Tangerine Bank | Discussion forum

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Savings account and TFSA rates down to 1.05%
February 3, 2015
7:48 am
Peter
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Tangerine Bank has dropped its savings account and TFSA interest rates from 1.30% to 1.05%.

It is by far the lowest rate on the comparison chart now.

AcceleRate Financial, Achieva Financial, ICICI Bank, Implicity Financial, and Outlook Financial have all dropped their rates over the past few days as well.

I would expect PC Financial to match Tangerine's rate drop.

February 3, 2015
7:41 pm
Rick
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Sorry for all the people that got sucked into putting their TFSA with them @ 2.5% until March 31. PT's rate drop to 2.5 is looking better all the time.

February 3, 2015
9:50 pm
Loonie
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It's good though for those of us who haggled with Tangerine and managed to get a guarantee of 2% in our savings accounts until March 31!
What will they do to retain our business after that? 1.05 isn't likely to cut it.

February 4, 2015
8:57 am
Yatti420
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I was about to say expect PC Financial to match this.. I noticed promo interest in my account this month.. I'm an existing customer and never haggled..

February 5, 2015
3:01 pm
jgclghrn
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I had another look at the promotional interest rates both PC Financial and Tangerine are offering (i.e. 2.5% until the end of March 2015) since they lowered their savings interest rates to 1.05%. So based on the details it seems the total return at both institutions is now 2.25% and not the original quoted 2.5%. It is still a good rate for the time being.

February 5, 2015
4:13 pm
JustMe
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jgclghrn said

I had another look at the promotional interest rates both PC Financial and Tangerine are offering (i.e. 2.5% until the end of March 2015) since they lowered their savings interest rates to 1.05%. So based on the details it seems the total return at both institutions is now 2.25% and not the original quoted 2.5%. It is still a good rate for the time being.

This is not correct. Tang will honor 2.5% until end of March.

February 5, 2015
6:19 pm
jgclghrn
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JustMe said

This is not correct. Tang will honor 2.5% until end of March.

You may be correct. I will follow up with a call to each. However, the fine print in their offers is as follows:

PC Financial: The promotional interest rate of 2.5 % (the “Promotional Rate”) is a combination of the regular annual interest rate on an eligible account, plus promotional interest (“Promotional Interest”) paid during the offer period.....Rates may change at any time.

Tangerine: During the Offer Period, the Bank will calculate Additional Interest on eligible net new deposits for existing Applicable Accounts each time the account balance exceeds the December 31, 2014 Applicable Account balance.....“Additional Interest” shall be 1.2%. Additional Interest and/or regular rates may change at any time without prior notice.
http://www.tangerine.ca/en/lan.....index.html

February 5, 2015
6:53 pm
jgclghrn
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JustMe said

This is not correct. Tang will honor 2.5% until end of March.

I phoned both Tangerine and PC Financial. They both confirmed the 2.5% rate is valid until the end of March. The gentleman at Tangerine said he would identify the error in their terms and conditions on the web site.

February 7, 2015
7:29 am
NorthernRaven
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Presumably they will adjust the "additional interest" upward from 1.2% to 1.45% to keep the total at 2.5%. But the wording seems to indicate that the 2.5% total is not guaranteed, and that they can adjust both the regular and additional rates at any time. If regular rates had gone up a quarter point, I'd imagine the additional interest would have dropped from 1.2% to 0.95% to keep the 2.5%.

Likely they had no thought of breaking the 2.5% mark no matter which way things went. But in theory there seems to be no requirement to maintain the 2.5% headline number, at least according to the terms. It would be interesting if they did reduce the total below 2.5%, whether there would be a legal case that 2.5% was an implied promise over the full period. Certainly the intent is that it should come across that way to the casual reader.

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