Interest rate dropped: Advantage Account | Page 2 | Manulife Bank | Discussion forum

I think the title of this thread is confusing.
If the point is to discuss the change in the rate of the previous offer, then it should specify and provide a link to the previous thread.

However, what ManuLife is offering now, which MapleOne's link (#12 above) clarifies if you follow through its links, is different $ terms, on the same model as the previous ones, with a starting rate of 2.85%. this new arrangement goes from July 26 to Sept 10 and is good for 5 months but completely subject to change in rates.

It seems to me that the rate promise is a joke. In reality, it's a variable rate just like any other savings account, and they will change it whenever it suits them - just like any other FI.

The T & C of this new "offer" are here:
https://repsourcepublic.manulife.com/wps/wcm/connect/2553e7d7-d371-443e-aaa4-60ef697cff8b/bnk_adv_dgbaug2019offerterms.pdf?MOD=AJPERES&CACHEID=ROOTWORKSPACE-2553e7d7-d371-443e-aaa4-60ef697cff8b-mMBrpH8
but they are next to useless as ManuLife has not committed itself to anything except offering a savings account. This reads, in part, "All rates are as at July 26, 2019 and subject to change without notice." ALL would include both the base rate and the Promotional part.

I am unclear whether the people who took the previous offer (which expired July 15 and started at 3.25 or 3.35 and dropped to 3.0 or 3.1) are also being demoted to 2.85%, but, if I had one of these accounts, then I would continue to monitor it frequently and would expect the rate to fall again.

A couple of years ago, some credible members of this forum were hurrying as fast as they could to dump ManuLife and their ManuLife advisors.
I predict that those of you have this savings account, especially with large sums, will soon be courted by ManuLife agents. Be careful! It's not really your savings account that they want. They want to manage all your money. This offer is a marketing and recruitment campaign.
The tactics at play now are consistent with why so many people were so anxious to get rid of ManuLife earlier. Some of you will remember kanaka, among others, in this regard.

So far, the evidence is that the bonus portion, the "Promotional Rate" of 1.60% in the current offer Loonie referenced and 1.85% in the previous offer, won't change.

So, the drop in Regular Rate from 1.50% to 1.25% will result in a ¼% drop in return.

It is essentially a regular+1.6% or regular+1.85% offer and not a fixed rate offer.

I think Rogers had a similar fiasco many years ago. Rogers was offering a fixed discount contract. But, their sloppy agents pushed it as a fixed price contract. Customers were quite upset next year when their monthly charges increased on their multi-year "fixed price" contract when Rogers increased the regular prices!

It says "All rates … subject to change without notice." My thought is that there would be no notice necessary of any rate changes. It doesn't seem to mean all of the rates could change.

The latest 2.85% offer (for group benefits members) also does not apply to Advantage Accounts opened before July 26:

Manulife Bank’s 2.85% Personal Advantage Account Interest Offer (the “Offer”) is available to Manulife Bank Advantage Account clients (“Eligible Account Owner(s)”) who open a new personal non-registered Canadian-dollar Advantage Account (“Eligible Account”) between July 26, 2019 and September 10, 2019 (the “Offer Period”) using an exclusive URL or applying through an authorized Manulife Bank representative.

…

I closed my manulife and simplii accounts and came pretty close to closing my tangerine accounts because of these types of 'incentives'. For the potential of a few more dollars it's not worth it to try to figure out whether or not you're going to be paid what their latest offers are. They have a mandate and to try to interpret it just isn't worth the effort.

for interest sake said
Since the promotional rate has an end date, I expected it to be a fixed amount which would remain in effect until then. It hasn't.

The terms of the two June 18 offers say the net "Promotional Interest" of 3.25% or 3.35% will change should the "Regular Rate" on the Advantage Account change. A specific example is mentioned to illustrate that:

Manulife Bank’s 3.25% Advantage Account Promotional Offer, which is currently 3.25% (“Promotional Interest”) is made up of the regular posted variable annual interest rate of 1.50% (“Regular Rate”) and the variable annual promotional rate of 1.75% (“Promotional Rate”). Any change to the Regular Rate will result in a corresponding change to the Promotional Interest. For example, if the Regular Rate of 1.50% were to decrease to 1.40% the Promotional Interest would decrease to 3.15%. …

Manulife Bank’s 3.35% Personal Advantage Account Interest Offer, which is currently 3.35% (“Promotional Interest”) is made up of the regular posted variable annual interest rate of 1.50% (“Regular Rate”) and the variable annual promotional rate of 1.85% (“Promotional Rate”). Any change to the Regular Rate will result in a corresponding change to the Promotional Interest. For example, if the Regular Rate of 1.50% were to decrease to 1.40% the Promotional Interest would decrease to 3.25%. …

What is fixed is the "Promotional Rate" of 1.75% or 1.85%. That is consistent with what Canadianbull reported:

Canadianbull said

When I open my account below rates were showing..

Interest rate 1.500%
Promotional rate 1.850%

Today below rates are showing

Interest rate 1.250%
Promotional rate 1.850%
…

I think you're being too kind to ManuLife, Norman.
These things are written by lawyers. The intention is to give ManuLife lots of wiggle room to do whatever they want. Otherwise, they would have been more specific, which lawyers are eminently capable of doing. This set of T & C is one of the worst we have seen in that regard, as has been previously noted.
Whether they use this freedom is another issue, but I think the language is clear as to the potential.
I think this is not a promotional offer in the way that many have been. It's a variable rate offer. The only thing that makes it a promo is that the rate is likely to remain higher than the "regular" rate because it is composed of two rates added together.

Look at it this way.. IF ManuLife decided to lower both rates and you as customer challenged this on the basis of these T & C, you would likely lose if it went to court because of the wording which permits it. ManuLife's lawyer would be eager to point this out, and what judge could disagree?

Not entirely true. There have been offers from other banks when rate was guaranteed even if underlying rate changed, but not lately.

So far so good with DUCA. I am on my second promo with them .

However, Meridian really did lower the rate last winter. We had closed our two single accounts in favour of a joint one to reduce account clutter since they are no use as savings accounts anyway. Our staff member at Meridian said we would get the bonus rate for a new account on the joint account for X months, which we hadn't realized we'd get. At the time, it was 3.15, and we did get that rate for a while. However, before the X months were up, it had been quietly reduced to 3.05. Those are the numbers I recall. I may have slightly mis-remembered but the rate did drop during the period in question.

When giving themselves permission to change rates during a promo, some FIs put it in terms of "unforeseen circumstances" etc. I find that language more acceptable and decent. ManuLife just gives themselves carte blanche. They don't need a reason. A whim will do. Such arrogance does not speak well for them.