EQ Bank 4% Offer For Setting Up >$2k/mo. Direct Payroll Deposit - Too Good To Be True? | EQ Bank | Discussion forum

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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

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Thanks Alexandre ⬆

And it looks like my wife's work pension qualifies too ... yes ❓

Dean

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.

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.

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.

There are two bonus rates in the offer:

1. "New Bonus Interest Rate" (4.00%) for $2,000 or more per month of payroll direct deposits.
2. “Recurring Deposits Bonus Interest Rate” (4.00%) for under $2,000 but $500 or more per month of payroll direct deposits.

It is #2 (not #1) that has the twelve month duration.

check out BMO and Royal Bank for HISA new offers just bear in mind like i discovered with CIBC for new customer sign up bonuses you may be required to maintain the account balance and direct deposits for a year, in some cases your bonus won't be paid out until that time elapses :/

We wanted to inform you of an upcoming change to our direct deposit bonus interest program. For some time, we’ve offered an exception process for customers who don't meet the standard $2,000 payroll threshold but demonstrate regular direct deposit contributions. We’ve been proud to offer this flexibility, but maintaining the process has become increasingly complex and unsustainable.

After careful consideration, we've made the difficult decision to wind down the exception process. This will help us ensure we can continue delivering the best overall banking experience.

Here’s what this means for you:

· You will continue receiving the direct deposit bonus until March 10th, 2025.

· After this date, the exception process will no longer be available1 and your interest rate will return to 1.50%*.

We truly value your loyalty and understanding during this transition. As a small token of our appreciation, we’ll also be depositing a $20 bonus into your account on March 10th, 2025.

If you have any questions or concerns, please don't hesitate to reach out to our Customer Care team. You can contact us by calling 1-844-437-2265 or through chat support.

Thank you for being an EQ Bank customer.

Sincerely,
EQ Bank

I missed this email from mid February, 2025. Oddly, I received the 4.00% interest for all of March and the interest rate online was showing 4.00% until yesterday.

I am trying to communicate that EQ did not follow what they said they were going to do in the email, which was to lower my interest rate on March 10th. They did it on April 10th instead. You would have to ask EQ Bank about this delay. It is to my benefit, so I am not going to ask them.