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Email this2:32 am
August 19, 2010
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Found out, that President's Choice is offering 2.5 % on new contribution to their TFSA, Interest Plus RRSP and World's Best RRSP
Check out this link: http://www.banking.pcfinancial.....ferid=ta06
Time to make your money count - but watch out for the TFSA limit!
2:33 am
August 19, 2010
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Sorry - April 30, 2011 not April 31st .... lol:oops:
4:16 am
March 25, 2009
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Good stuff... although I was hoping when I saw the promo it was for their savings accounts too.
Have a great day
5:08 pm
Yeah, too bad it doesn't apply to savings accounts, because PC Financial is notorious for bait and switch rates on TFSA's. Beware, they charge you $50 when you transfer the money out leaving you with a negative interest rate so essentially, once they get your money, you will never see it again.
2:14 am
August 19, 2010
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You are right - but compare the $ 50 with the other banks charges when you want to take the money away! Then the $ 50 don't look bad anymore .....
9:35 am
guest said:
PC Financial is notorious for bait and switch rates on TFSA's. Beware, they charge you $50 when you transfer the money out leaving you with a negative interest rate so essentially, once they get your money, you will never see it again.
Simply leave $2 in your TFSA account instead of closing it. Then you don't get charged the $50 TFSA transfer fee if all you're doing is withdrawing most of it. You're allowed to have as many TFSA accounts open as you like, just make sure when you add up all the money you have in them, it doesn't exceed the TFSA limit. Withdraw any money you want to move in the last five business days of the year (minus the $2) and put the money in the new place from January 1st onward.
9:48 am
Prag said:
Simply leave $2 in your TFSA account instead of closing it. Then you don't get charged the $50 TFSA transfer fee if all you're doing is withdrawing most of it. You're allowed to have as many TFSA accounts open as you like, just make sure when you add up all the money you have in them, it doesn't exceed the TFSA limit. Withdraw any money you want to move in the last five business days of the year (minus the $2) and put the money in the new place from January 1st onward.
I think the issue is that once April 31, 2011 rolls around, the interest rate will no longer be appealing, so that is when one would want to move the money to another TFSA account, however, that would cost $50 to transfer. If you wait until the end of the year and simply withdraw that money, then you get stuck with the lower rate for nearly 7 months.
If Peter had a "history" for the TFSA rate, I believe that you would see that Canadian Tire Financial was the only one that actually held their TFSA rate higher than their Savings account rate on a non-promotional basis.
9:56 am
May 15, 2007
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You're right, I should really add that column, since we've seen many banks pull that tactic on the TFSA. Sadly I haven't been tracking that history over the past year.
I'd like to see the government protect us against such misleading tactics (especially when the high rate isn't even advertised as a promo rate) on such strict accounts such as the TFSA.
11:37 am
September 11, 2010
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I should point out that the 2.5% only applies to new deposits.
For example, if you already maxed out your PC TFSA ($10,000 plus whatever interest you've earned on it, say $200), then deposit another $5,000 on January 1, 2011...the original $10,200 will still only earn 1.5%, and just the $5,000 will earn the 2.5% promotional rate.
Another (better) way to look at it is, the entire $15,200 would earn the base 1.5% and the new deposit of $5,000 would earn an additional 1.0%. The reason this way is better is because a) that's how they explain it in the fine print; and b) that is how the interest is actually paid out on your monthly statement.
So don't be fooled, this promotion is nowhere near what the other banks are offering. For this reason I yanked out my entire TFSA from PCF earlier this month and am waiting to see who has the best offer in the new year. I was considering taking the hit for the $50 transfer fee to move it somewhere else in the middle of the year (back when PCF was offering a paltry 0.75%) since that $50 would be paid back in the new account after 3 months or so...as opposed to getting the lower rate for 7 months as was mentioned earlier, you'd still come out slightly ahead. But out of principle, I refuse to pay that fee...they shouldn't be charging US to let them hold OUR money!
So now it's either to CDF (3.0%, and has been steady since they introduced it in May or June or whenever)...or as was mentioned above, CTFS (3.5%, although they've been notorious for NOT labelling it as a promo rate, then dropping it by 1.0% at the end of April). And yes, I'm aware they have the " *disclaimer: rates may vary "...damn them and their get out of jail free cards/legal loopholes.
2:13 pm
Found out, that President's Choice is offering 2.5 % on new contribution to their TFSA, Interest Plus RRSP and World's Best RRSP Check out this link: http://www.banking.pcfinancial.....ferid=ta06 Time to make your money count - but watch out for the TFSA limit!
Canadian Tire just upped their interest rate to 3.5% for TFSA. Their savings account is 2%.
1:37 am
March 25, 2009
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PCF should match their savings accounts to 2% as well (or even the promo 2.5%). After all, what's the diff?
Have a great day
3:42 pm
September 11, 2010
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What's the diff?
Like I said before, the promo is only for registered accounts because they know that once they got you, you're stuck with them unless you shell out the $50. Heh. The regular savings accounts have no fee to transfer in and out, so there's no need for them to entice you by raising the rates then pulling the bait and switch.
Anyway, safe and happy New Year's all...here's to health, family and wealth for us savers in 2011.
7:11 am
Andrew said:
Prag said:
Simply leave $2 in your TFSA account instead of closing it. Then you don't get charged the $50 TFSA transfer fee if all you're doing is withdrawing most of it. You're allowed to have as many TFSA accounts open as you like, just make sure when you add up all the money you have in them, it doesn't exceed the TFSA limit. Withdraw any money you want to move in the last five business days of the year (minus the $2) and put the money in the new place from January 1st onward.
I think the issue is that once April 31, 2011 rolls around, the interest rate will no longer be appealing, so that is when one would want to move the money to another TFSA account, however, that would cost $50 to transfer. If you wait until the end of the year and simply withdraw that money, then you get stuck with the lower rate for nearly 7 months.
If Peter had a "history" for the TFSA rate, I believe that you would see that Canadian Tire Financial was the only one that actually held their TFSA rate higher than their Savings account rate on a non-promotional basis.
The CTF rate of 3.5% is attractive and looking at the history of rates it would appear to be consistently superior to the PCF rates in the past 2 years. That's right that there is a $50 transfer out fee. The other option is simply withdraw and contribute into the new plan but if you do that you can only contribute the following year and not the current year. I should have withdrawn on Dec 31 and then re contributed to the new plan on Jan 1st so that I could avoid the $50 penalty. Otherwise if you simply withdraw now on Jan 1 you will not be able to recontribute that amount until Jan 1 the following year meaning 2011 so it will accrue unsheltered from tax tax for the duration of the year. So You have to compare the interest differential to be earned by paying the $50 penalty to the additional tax free interest otherwise to be earned. Say PCF gives the 2.5% for all of 2011 and CTF gives the 3.5% for all of 2011 then that translates to an additional $100 of interest on $10K assuming you maxed out for 2009 and 2010 ($5000 * 2 yrs) so it would still be worth incurring the $50 transfer out penalty. But this comparison is not accurate b/c the PCF actually gives 2.5% only on new contributions meaning the existing $10K from prior years is earning only 1.5% interest and even with the tiered anniversary bonus of 0.1 which is nothing that actually represents a 2% differential from CTF's 3.5% so the additional interest is actually $200 vs keeping the $10K in PCF. So it's better to pay the $50 transfer fee and earn an additional $200 for 2011 for your $10K investments.
Keep in mind at Dec 31 2011 you should examining what better options are out there so that you can withdraw and immediately recontribute on Jan 1 2012 to the TFSA that gives you the higher rate without incurring the $50 transfer out fees and without incurring any lost opportunity interest from withdrawing later.
Please write your comments in the forum.