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Zag Throws In The Towel
November 5, 2018
9:34 am
Yatti420
Canada
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IMPORTANT: Zag Bank winding-down operations

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Zag Bank
Even though Zag Bank will be closing
Your deposits are 100% safe

You are receiving this email because you have a Zag Savings account (if you have more than one type of product with us, you will receive more than one email notification). We want to advise you that after a change in strategy, our parent company Desjardins Group, has decided to wind-down the operations of Zag Bank by June 2019.

Your deposits are 100% safe
Desjardins Group will continue to fully support Zag Bank through the wind-down and will ensure that all deposits are covered. And, to thank you for your business and apologize for any inconvenience, we have deposited a bonus amount of $25* into your account.

What does this mean for you?
Effective today, we will no longer be accepting any new deposits into your account through Zag Online or Zag Mobile. You will however, be able to continue to transfer money out of your account until 11:00 pm EST on November 29, 2018. You may choose to transfer out any remaining amounts from your account (including your $25 bonus) before this date.

Or, we will take care of everything for you. On December 1, 2018, we will transfer out any remaining amounts in your account, including interest earned, to your externally linked account via an electronic funds transfer. Then we will close your account after which you will no longer be able to access it through Zag Online or Zag Mobile.

In December 2018, you will receive a final monthly statement that will be mailed to the address we have on file. In addition, 2018 tax slips will be mailed to you if applicable, during tax time.

You remain our top priority during this transition. If you have any questions, please do not hesitate to contact us or review these Frequently Asked Questions.

Thank you for being a Zag Bank client. We have truly appreciated your business and we wish you all the best.

Zag Bank Team

*One bonus of $25 per account.

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This is an auto-generated email but real people are here to answer questions. Chat or email us. Or call 1‑844‑Zag‑Bank (1‑844‑924‑2265).

We take information security seriously. If you receive a suspicious email containing hyperlinks and asking for personal or confidential information, do not click on any links. Forward it to us at clientservices@zagbank.ca for investigation. Please do not include personal or confidential information in regular email as regular unencrypted email is not secure.

© Zag Bank. All rights reserved.
6807 Railway Street SE Suite 120, Calgary, AB, T2H 2V6,

November 5, 2018
9:48 am
rhvic
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The first of many, perhaps? Too many smaller players in the field?

Good thing I only had about $100 in there - moved it out just now.

November 5, 2018
10:06 am
Yatti420
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Did you get your bonus 😉

November 5, 2018
10:12 am
rhvic
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Yes, there was an extra $25 in the account.

November 5, 2018
11:46 am
Bill
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Had 3 accounts with a grand total of about $9 sitting in them for over a year or so, made $75 on it - we're goin' out on the town tonight!

November 5, 2018
12:00 pm
zagbank
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November 5, 2018
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Due to expected high volumes, if you are unable to login to Zag online, try using our self-serve 'forgot password' feature https://www.zagbank.ca/faq/what-should-i-do-if-i-forget-my-online-banking-password-and-or-my-user-id.

If you have questions, please refer to our website memo (https://www.zagbank.ca/about-us/closing) and FAQs (https://www.zagbank.ca/help/faq?cat=3), and if you can't find what you are looking for, we would be happy to take your call -- 1-844-Zag-Bank (1-844-924-2265) https://www.zagbank.ca/help/contact-us.

November 5, 2018
1:12 pm
toto
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Just checked, I got my bonus, glad I didn't close my account after my 2 year gic matured. I didn't have much in it.
My husband did close his account so is wishing he hadn't.

November 5, 2018
1:25 pm
2of3aintbad
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Amazing. In 40 years of investing, I have never seen anything quite like Zag, from the opening bonus, to the unchanging rates, to the closing bonus. I have already transferred out the bonuses on two accounts, before they change their minds

November 5, 2018
2:43 pm
mechone
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Thanks for the 25.00 I had .20 cents in the account after pulling 100,000 after 2 years at 2.5%sf-laugh

November 5, 2018
2:52 pm
dentgal
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Like most of you, I had cleared out my accounts as the rates were no longer competitive. ZAG was definitely the most onerous bank that I've ever had to set up accounts with. I had 30 cents left in each of 4 accounts, so I too got a $100 windfall. I guess I'll have to wait for the cheque for the Tax Free Savings Account. NEXT. It's funny. Many decades ago, I banked with Province of Ontario Savings--it was a high interest, no fee bank (like Simplii and Tangarine, before we had such things). Once the Province sold to Desjardins, the rates plummeted and I pulled my accounts out. Now the same thing has happened with ZAG. Who uses Desjardins? Scary!

November 5, 2018
3:23 pm
Save2Retire@55
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Imagine if you had 10000 accounts with each 0.01 here 🙂 Cost $100 > Bonus: $250,000. Haha. Only if we could predict.
I got my $25 and initiated a transfer. One less account feels good 😀

November 5, 2018
3:28 pm
Saver-Mom
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Dentgal do not worry about Desjardins customers. This from Desjardins group: “Desjardins Group is the leading cooperative financial group in Canada and the fifth largest in the world, with assets of $290.1 billion. To meet the diverse needs of its members and clients, Desjardins offers a full range of products and services to individuals and businesses through its extensive distribution network, online platforms and subsidiaries across Canada. Ranked among the World's Strongest Banks according to The Banker magazine, Desjardins has one of the highest capital ratios and credit ratings in the industry.“

November 5, 2018
3:51 pm
AltaRed
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The Zag announcement specifically mentions a change in strategy. These things happen all the time in conglomerates. They tested the waters and determined retail online banking just wasn't worth the 'penny change' they were getting from this activity. Likely the old 80/20 rule when it comes to gain for effort expended.

I give them credit for providing a closing bonus. A class act in my opinion.

November 5, 2018
4:14 pm
hotmony
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Never good to see less competition nevertheless their first deal 2.5 was key at the time when everyone else was offering less

November 5, 2018
6:47 pm
Norman1
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This is from their press release Zag Bank to wind down its operations issued today:

Depositor funds and accrued interest are entirely safe, backed by Zag Bank and Desjardins:

  • Clients can withdraw the funds in their high interest savings accounts if they choose, but the Bank will not be opening any new accounts or accepting new deposits as of November 5, 2018. On December 1, 2018, remaining deposits in high interest savings accounts will be returned to clients who haven't already withdrawn their funds.
  • Clients with Guaranteed Investment Certificates (GICs) will be able to terminate their investments early with no penalties. Interest accrued will be paid in full.
  • Clients with registered investments (TFSAs, RRSPs) will be able to easily transfer their investments into a registered investment at another financial institution of their choice. Zag Bank will not charge any fees for transfers.

All clients will be contacted by Zag Bank in the coming days with further details on the next steps and formalities applicable to them.

Zag Bank employs approximately 60 people based in Calgary, Toronto and Montreal. Each of them will receive the necessary support to pursue new opportunities within Desjardins Group and beyond.

A bit about Desjardins Group's motivation:

"We recently reviewed our activities in Ontario and in the Western and Eastern provinces and decided to concentrate our efforts, resources and investments on innovation and growth in P&C insurance, wealth management and payment services. As a result, we determined that an online or direct bank was no longer a strategic fit with our long term strategy", said Denis Berthiaume, Senior Executive Vice-President and Chief Operating Officer of Desjardins Group.

November 5, 2018
11:15 pm
Vatox
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Mmm.. I'm getting 6 months extra interest on my GIC, in addition to the $25 per savings account.

November 6, 2018
7:24 am
GR
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Vatox said
Mmm.. I'm getting 6 months extra interest on my GIC, in addition to the $25 per savings account.  

No. It means that only ACCRUED interest on GIC until date of redemption will be paid, not full interest to date of originally intended maturity.

November 6, 2018
8:18 am
Vatox
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GR said

No. It means that only ACCRUED interest on GIC until date of redemption will be paid, not full interest to date of originally intended maturity.  

So it's not additional, it's just what's owed then. Thought I won the lottery.

Damn thing is worded as additional interest.

November 6, 2018
8:32 am
Norman1
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I think the early redemption of certain GIC's on December 10 is optional.

This is the answer, in their FAQ, to the question "Can I redeem my Zag GIC early?  How long will it take?" for GIC's that mature December 6, 2018 or later:

To redeem your GIC early and close your account, please provide your consent by 11 pm EST on December 5, 2018 (simply click the link in the email we sent you). If your consent is received by this date, we will payout your GIC early on December 10, 2018 by electronic funds transfer to your externally linked account. Please note, an electronic funds transfer can take 3 to 5 business days. We will then close your account.

November 6, 2018
8:33 am
savemoresaveoften
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I had $0.99 and was waiting for it to grow to $1 which is min required to initiated a etransfer. I just transfered $25.99 just now. Thanks Zag 🙂

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