Luminus 2.75% for 12 months on new deposits | Luminus Financial | Discussion forum

I am not clear what this offer means. If it's good until Sept 30, 2019, what is it that's for a limited time only?

Believe it or not (and I had a hard time believing it), but people who opt into the promo are not guaranteed to get 2.75% until September 2019.

Instead, Luminus can reduce -- or eliminate -- the bonus rate at anytime between now and September 2019.

Yes, this is inane.

They are referring to the promotional rate as"variable." I suppose their marketing department found that more agreeable than "arbitrary" or "we just want people to put cash here and then kind of forget about it."

For the above reason, I'd recommend removing this from the promo page -- I don't see it as a legitimate promo (it could technically end in a month).

Perhaps someone from Luminus will realize that this is about the tackiest, most amateur promo ever, and will change the policy. Even the big banks don't do things this way, and they set the bar really, really low (just look at Scotia with their ridiculous Momentum promo).

I am in full agreement with you. I didn't even know this kind of promotional model existed. I assumed -- like everyone else -- that Luminus was saying it could end the promo at any time, but anyone who got in before then would get 2.7% until September/19.

But I learned directly from Luminus that this is not the case. They are calling the bonus rate "variable," and it is not guaranteed.

They are reserving the right to change (read: lower or eliminate) the rate anytime between now September/19.

The reason I posted about this is frankly because I don't think Luminus should be doing this. I think a lot of people will assume they are earning 2.75% until September 19. Money they could have moved to EQ, Tangerine, or anywhere else (Meridian has a 1 year new money GIC at 3.25%) could be parked at Luminus earning 1.5% or whatever they decide.

Yes, technically speaking people are supposed to check their statements, etc. etc.

But if you think you are earning 2.75%, what is the likelihood that you will go online and confirm that periodically throughout a year? I think it's slim.

If Luminus is reading this: I don't know why you're doing this. I think it's going to really piss a lot of people off, and you will end up losing deposits and members.

Small print on the Luminus site today. I do not see the term "variable" as referred to above by a poster. Their "normal" rate on ISA for a long time appears to be 1.75%. Of course, we know Luminus has lots of fees, service fees, membership fee and an annual fee.

*The promotional rate of 2.75% will be offered to any new deposits until September 30, 2019; after that our normal rate of 1.75% will be applied. Speak to a Member Relations Officer for full details.
**All credit union deposits are protected up to $250,000 through the Deposit Insurance Corporation of Ontario (DICO).

OK I get it now:

They are not guaranteeing 2.75% until Sep/19.

Rather, they are guaranteeing the 1% bonus until Sep/19.

Right now, their ISA rate is 1.75%, so with the bonus is is 2.75%.

But at anytime between now and Sep/19, they can change (lower) their ISA rate.

So for example, if in January they lower their ISA rate to 1.25%, then people who enrolled in the promotion would get 1.25%+1% = 2.25%.

I am really unimpressed with their language around this promo, because unless you unpack things, it it easy to assume that the guaranteed rate is 2.75%. But what's really guaranteed is the 1% bonus.

If Luminus achieves their deposit goal I see no reason why they wouldn't reduce their base rate, which will ultimately reduce the promotional rate. I figure they're counting on the laws of inertia, ignorance and indifference to keep most of the money there.

The email blast that Luminus sent out about this really does suggest that the rate is 2.75% until Sep/19. It's really tacky how they crafted it.

Peter, at the very least I suggest re-labeling the promo. Right now (because of the thread title) it says "Luminus 2.75% for 12 month on new deposits." I think it should read "Luminus 1% bonus on top of current ISA rate on new deposits until September 19" or something like that.

I'm not trying to be pedantic -- it's just that I don't think Luminus deserves to be in the same comparison conversation as other FIs that are offering a guaranteed and fixed ISA rate as part of a promotion (like Tangerine does and Simplii used to do...maybe they will again).

Thanks MoneyMatters -- FWIW though, my information is that the original plan was that while the 1% bonus was fixed, the underlying HISA rate was not.

So for example, when the promo launched the HISA rate was 1.75%, and so with the 1% bonus it was 2.75%.

However, again based on the information I was provided, originally there was no guarantee that the HISA rate would remain at 1.75% until Sep/19.

So for example, let's say in Feb/19 Luminous drops the HISA rate to 1.25% (see note below). The effective rate for people in promo would fall to 2.25%.

However, I believe based on feedback from members -- and also because I believe they over-promised in their marketing and realized undoing that it would be most costly than just taking the hit -- they decided to go with the guaranteed 2.75% for people who are enrolled in the promo, even if (and this is important) the underlying HISA rate drops from 1.75%.

Note: it's been mentioned on this board that Luminous would be unlikely to drop its HISA, and that point is well taken. However, if they were oversubscribed on this promo (or for any other reason) I could see them dropping it. Why not? They are not a HISA leader and, to my knowledge, have never tried to be.