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Email this11:21 am
May 3, 2019
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Called EQ yesterday and the very competent sounding rep assured me that once set up, the 4% rate (combo of 1.25% regular + 2.75% bonus) is applicable to the entire balance (not just the direct-deposit amount) and also never expires. Sounds too good to be true but it is very easy for me to change my direct-deposit online so I did so and I am readying to transfer ~$100k into my EQ account as 4% currently beats all the other HISAs and I believe all other GICs, regardless of the term.. I pored over EQ's Terms and Conditions but all I got was confused!
Anyone know more about this and can share their insights?
11:29 am
May 15, 2007
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It is as they say. I've been taking advantage of this offer since last year.
1:52 pm
January 12, 2019
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Related question . . .
Many of us here are retired now, and are no longer on a payroll. For this special 4% deal on payroll deposits, will EQ accept monthly pension payments as well ?
Thanks,
- Dean
" Live Long, Healthy ... And Prosper! "
2:22 pm
November 8, 2018
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These are T&C: https://www.eqbank.ca/legal/Bonus-Interest-Offer-Terms-Conditions
Check Section 3, they list all deposits that qualify. OAS and CPP do qualify, for example.
4:43 pm
January 12, 2019
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Thanks Alexandre ⬆
And it looks like my wife's work pension qualifies too ... yes ❓
- Dean
" Live Long, Healthy ... And Prosper! "
9:06 am
May 3, 2019
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The aspects that make me think this may be too good to be true are: that the 4% is on one's entire balance and (2) that that rate continues as long as the client's monthly direct-deposits are being made. Soooo for example, If a client transfers-in $500k, EQ is going to pay them 4% on their entire balance? If yes, What if interest rates fell by another 2%, from ~3% to 1%, EQ would be losing money paying 4% and very tough to believe the rate would not be adjusted.
9:42 am
April 6, 2013
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The 4% rate is a promotional rate offer. The offer does not have a minimum period for the 4% rate like the Tangerine and Simplii promotional offers have.
Section 6 allows EQ Bank to end or change the offer anytime:
6. Termination, Suspension, or Modification
…. We reserve the right, without prior notice, to terminate, suspend, or modify the Offer (including but not limited to modification of the [current 4%] Bonus Interest Rate, eligibility requirements, or the minimum monthly dollar amount required in Recurring Deposit(s) ) in any way, in whole or in part or for select participants, for any reason in our sole discretion, or if the Offer cannot run as planned, including due to infection by a computer virus, bugs, fraud, tampering, unauthorized intervention, technical failures, or any other causes which corrupt or affect the security, administration, or conduct of this Offer. …
I expect EQ Bank to lower the Bonus Interest Rate should the rate attract too much savings account deposits.
9:57 am
January 12, 2019
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Thanks Norman ... I saw that ⬆ too.
I'm guessing when they collect enough in their confers from this promotion, they'll Lower the rate Substantially.
It's an Age Old Tactic ... sometimes known as; 'Bait & Switch'. 
- Dean
" Live Long, Healthy ... And Prosper! "
12:53 pm
April 6, 2013
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That depends on how the attracted deposits behave.
If most of the deposits is spend within a month through the EQ Bank Card, a prepaid Mastercard, then the 4% rate could last a long time.
A prepaid Canadian Mastercard earns an interchange of 1.44% or 1.55% for the issuer. The 1.44% per month = 17.28% per annum can easily fund the 4% per annum interest paid on the transitory deposits.
The PC Money account has similar underlying economics.
9:28 am
November 18, 2017
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Many banks offer bonuses for using their direct deposits on a regular basis. Do they get a fee for doing those for payors? Or is it just getting your money to land in their coffers at least briefly that supplies the boost?
Because of the danger of reversed deposits causing a cascade of non-payment penalties where some went NSF (non-sufficient funds), which has happened to several people I know, I have always kept a separate account with one institution just to receive direct deposit. I've wondered if they are unhappy with me never keeping significant cash there for long.
RetirEd
10:01 am
April 6, 2013
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The receiving bank doesn't receive any interchange or service fee from the originating bank of the direct deposit. The originating bank charges its client a service fee for transmitting the automated fund transfer just like it would if the client used a paper cheque.
The receiving bank offers incentives for incoming direct deposits because the direct deposits start locking the client in. That continues further if the client is also convinced to set up pre-authorized debits with utilities, lenders, and other billers too.
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