4.70%* (formerly 4.80%) on TFSA, RRSP and Advantage Accounts | Page 5 | Manulife Bank | Discussion forum

Norman1 said
I would wait. The 120 days of the 2.85% top up (to 4.70%) start "on the date the account is opened".  

Will 4.70% be paid for all deposit amounts made during the 120 days after account opening or only on deposits made up to and including March 10th?

pluto said
The only advantage to keeping it in CASH.TO is I can quickly use it to buy other investments if there is a market downtown / buying opportunity.  

So far I have been pretty much avoiding to invest TFSA funds in stocks/etfs. I read that CRA looks at how many such transactions one has had during the year and if they think that you exceeded the maximum (which is nowhere stated to the best of my knowledge) you may need to pay taxes on the profit.
Do you have to report TFSA income from CASH.TO when you file taxes? Do you think that it is OK to have several transactions per year involving TFSA ETFs?
The reason why I am asking is that I am planning to buy some ETFs in my TFSA, maybe including CASH.TO.

pluto said

First I have ever heard of this. I'm getting monthly dividends from not just CASH.TO but from a number of other ETFs also. I don't see how this would be any different than getting monthly interest payments from a bank with a HISA. The whole point of TFSA is all income (interest, dividends and capital gains) are tax free so no I have never reported it or received a tax slip for income earned inside a TFSA account.  

CRA look at the asset$ size of the account, and if it's a very big number that shows beyond normal return, they will look closely at number of transactions and the nature of the transactions etc. CRA don't like to see the account being used for active trading. Mind you active trading will be classified as hundreds of trade a year, again beyond what a normal account is expected to do.

do CRA cares if one actively trade the RRSP, they don't care cuz the more u make, the more they will collect at the end, esp since there is no capital gain tax credit so to speak.

rk said

So far I have been pretty much avoiding to invest TFSA funds in stocks/etfs. I read that CRA looks at how many such transactions one has had during the year and if they think that you exceeded the maximum (which is nowhere stated to the best of my knowledge) you may need to pay taxes on the profit.
…

CRA is looking for people carrying on a business, like a stock trading business, in their TFSA. Gains from carrying a business in a TFSA are explicitly excluded from the tax exemption in Income Tax Act subsection 146.2(6) for TFSA's.

Number of transactions is only one thing considered. A previous discussion went into details including a Tax Court of Canada decision against one taxpayer.

Norman1 said

Lodown said

Will 4.70% be paid for all deposit amounts made during the 120 days after account opening or only on deposits made up to and including March 10th?

The extra 2.85% will be paid for 120 days separately on the "Net New Deposits" made during the 120 days.

I checked the amount paid. The 2.85% is not paid on the regular interest. So, it isn't quite 1.85% + 2.85% = 4.70%.  

good to know interest is only compouned at 1.85 and not 4.7

Norman1 said
2.85% is paid on the extra 2.85% interest paid in previous months. So, the interest compounds separately at 1.85% and 2.85%. Just not together at 4.70%.  

oh so the 1.85 interest compounds at 1.85, only the 2.85 bonus is being compounded at 2.85 ?? Gee do they have to make it that complicated

Tang just don't pay promo portion on interest earned which is actually easier to understand haha

bali said
Hello, I have an AA account that just expired and I was getting 4.85%. I just opened a new AA account (4.7%, expires in 4 months). I want to move my money from the expired AA account to the new one and receive the 4.7%.
If I transfer the $$$ from the old to the new then I will simply get the posted rate and not the bonus. However in reading the terms I think that I can transfer my money from the expired AA account to an external institution and then transfer back into my new AA account and receive the 4.7%
Your thoughts please.  

Correct - you cannot transfer the old funds already in the expired rate account directly to the newly opened 4.7% account. It might have been better if you had moved the funds out to your external account before you opened the new account - however I think it will still work if you move the funds out to the external account and then pull them back directly to the new promo account, once any hold period (if any) at your linked account is finished. The Advantage Account is a great account - a combined chequing and savings account with no fees when you maintain a $1K balance, and of course getting 4.7% is a superior rate these days.

jorno319 said
For everyone participating in this current offer, be aware of the following from the terms and conditions (found here):

All funds held by the client in existing Manulife Bank account(s) on
December 11, 2024, will not count as Eligible Deposits.

  

that will mean post#94 wont work then.

That condition does not mean Manulife Bank did a December 11, 2024 snapshot and won't pay Promotional Interest unless one's total balance across all Manulife Bank accounts is above that December 2024 total balance.

There's no indication that withdrawals from other Manulife Bank accounts will be subtracted from Eligible Deposits:

… Subject to the limits and qualifications outlined in these terms and conditions, Manulife Bank will pay the Promotional Interest on Net New Deposits made during the Promotional Period, … Net New Deposits are funds from an external source and cannot be transferred from an existing Manulife Bank account. All funds held by the client in existing Manulife Bank account(s) on December 11, 2024, will not count as Eligible Deposits. Any withdrawals from the Eligible Account during the Promotional Period will be subtracted from the Eligible Deposit balance. …

If one pays $10,000 of bills from other Manulife Bank accounts and subsequently receives $10,000 of payroll direct deposits into the Eligible Account, then Manulife Bank will pay promotional interest on the $10,000 of deposits.

However, if it detects an attempt to move $10,000 out of another Manulife Bank account and then indirectly back into the Eligible Account, then Manulife Bank can refuse to pay promotional interest on that $10,000 under that condition.

savemoresaveoften said
I imagine once bank cuts on wed, this rate will drop from 4.7 to 4.45 ?  

Maybe, based on the previous promo, it never moved in lockstep with the BoC announcements.