1% transfer in promo | Page 2 | Meridian Credit Union | Discussion forum

JustMe2016 said
8 days ago I called a Meridian branch located near me and I asked them if I were to open a brand new TFSA account (2 actually 😉 ) and deposited $63,500 would I get the 1% bonus? After being put on hold I was told that yes they would 'bend' the rule and give it to me.

Actually to me it is not bending the rule but being logical as the purpose of the campaign is to attract new money. That I do a direct TFSA transfer, or write a cheque from another FI it is new money. But enough about the semantics.

I was also told that the 1% would not be added to the TFSA account but would be deposited in a regular saving account. I believe they call it 'Advantage' account.

Yesterday the accounts were open and I was surprised to being told that the 1% would actually be added to the $63,500 instead of being deposited in a separate account as I was told 8 days prior. And it would be added in a few days.

Therefore this change the calculation.

So if you invest into a 18 months GIC at 3.25% and get the 1% bonus added a few days later and with the interest compounded annually it will give you an average of 3.98% over the 18 months.  

Well, I also open 5 years tfsa account for myself and for my wife. They gave me %3.75 rate on both accounts 10 days ago. I moved $110K to meridian. I will call them tomorrow to find out if they give me 1% bonus. So Just to be clear if they agree to it they will only pay upto total $750 per account right?

JustMe2016 said

Yes the 1% is a max of $750 per account and per type (TFSA and RRSP) based on a transfer of $75K. Any amount transferred above that on a per account and per type basis will not benefit from the 1% bonus.  

Thanks justMe2016. I open 2 separate TFSA accounts.
63500 for my wife and the rest went into my account. I sent email to my Meridian financial advisor. Most likely he'll get back to me tomorrow.

JustMe2016 said
8 days ago I called a Meridian branch located near me and I asked them if I were to open a brand new TFSA account (2 actually 😉 ) and deposited $63,500 would I get the 1% bonus? After being put on hold I was told that yes they would 'bend' the rule and give it to me.

Actually to me it is not bending the rule but being logical as the purpose of the campaign is to attract new money. That I do a direct TFSA transfer, or write a cheque from another FI it is new money. But enough about the semantics.

…

That just makes too much sense!

Unfortunately, that much common sense can be too much to carry and some will be lost on the way to the actual execution of the campaign.

Instead of bending the terms and conditions of the offer, it would have been better to amend the fine print. "New Assets" could also include unregistered funds at another financial institution that are deposited as a new contribution to a TFSA or RRSP at Meridian.

It didn't occur to anyone in marketing at Meridian that someone could have enough unused TFSA or RRSP contribution room to make a $10,000+ contribution?

semi-retired said

The wife & I are transferring both our TFSA's into here for the 18 month term.
They are both maxed out. I asked what the bonus is counted as, when it goes in the account. Adviser wasn't sure but if it was going to be classified as a deposit(no room,( penalty ) it would be deposited into reg savings account. Will update this situation later in the week.

My guess is the 1% bonus would be an advantage that is exempt by one of the exceptions listed in paragraph 3.7 of Income Tax Folio S3-F10-C3 (Advantages – RRSPs, RESPs, RRIFs, RDSPs and TFSAs):

3.7 The following list details exceptions to the type of advantage described in ¶3.6:

1. administrative or investment services provided in connection with the plan
2. a loan or other debt (including the use of a TFSA as security for the debt) that reflects arm’s-length terms and conditions
3. a distribution from the plan in satisfaction of all or part of the controlling individual’s or beneficiary’s interest in the plan
4. a payment or allocation to the plan by the issuer, carrier or promoter
5. a promotional incentive under a program offered to a broad class of persons in a normal commercial or investment context and not established mainly for tax purposes
6. a government grant or bond payment to an RESP or RDSP

Example 6 in paragraph 3.12 appears to confirm the exemption of the 1% bonus advantage. As well, the example indicates CRA doesn't see the bonus as a contribution:

Promotional incentives

3.12 It is common practice for financial institutions and other firms in the investment industry to offer fee waivers, preferential pricing, bonus interest and other promotional incentives. … Where a customer’s registered plan is taken into account in determining eligibility, the incentive could be viewed as conditional on the existence of the plan. However, most conventional incentives are accommodated by one or more of the exceptions described in ¶3.7(a), (d) or (e). Examples 2 to 6 demonstrate common situations that are covered by these exceptions.

…

Example 6

A financial institution offers $100 cash back to new customers who open an RRSP, RRIF or TFSA and maintain a minimum balance of $50,000 for at least one year. The cash payment is made directly into the qualifying plan. In addition to the payment not being treated as an advantage, it is the CRA’s view that the payment does not constitute a premium, gift or contribution to the plan. This ensures that such payments will not affect contribution limits or the registered status of the plan.

semi-retired said

The wife & I are transferring both our TFSA's into here for the 18 month term.They are both maxed out.I asked what the bonus is counted as, when it goes in the account.Adviser wasn't sure but if it was going to be classified as a deposit(no room,( penalty ) it would be deposited into reg savings account.Will update this situation later in the week.  

Good point!

JustMe2016 said
8 days ago I called a Meridian branch located near me and I asked them if I were to open a brand new TFSA account (2 actually 😉 ) and deposited $63,500 would I get the 1% bonus? After being put on hold I was told that yes they would 'bend' the rule and give it to me.

Actually to me it is not bending the rule but being logical as the purpose of the campaign is to attract new money. That I do a direct TFSA transfer, or write a cheque from another FI it is new money. But enough about the semantics.

I was also told that the 1% would not be added to the TFSA account but would be deposited in a regular saving account. I believe they call it 'Advantage' account.

Yesterday the accounts were open and I was surprised to being told that the 1% would actually be added to the $63,500 instead of being deposited in a separate account as I was told 8 days prior. And it would be added in a few days.

Therefore this change the calculation.

So if you invest into a 18 months GIC at 3.25% and get the 1% bonus added a few days later and with the interest compounded annually it will give you an average of 3.98% over the 18 months.  

Happy new year 2019 !

Would it be please possible to obtain the contact information or email of a Meridian adviser that would be willing to open a new TFSA instead of going through a full TFSA transfer request to be eligible for the 1% promotion ?

Thank you very much in advance for your input.

Yesterday, I walked into the Meridian Waterloo branch, and got instant access to the Branch Mgr... a nice lady, but said she absolutely could not "bend the rules", and that a T2033 direct transfer was absolutely the only way to get the 1% bonus.

I mentioned that I was aware of others, who had been told they could open a new TFSA, and put in (temporarily) unregistered funds and get the 1%, but she didn't bite; however, she was willing to absorb (up to) $50 in Transfer-Out fees from the other FI.

So for my wife and I to take advantage of this great 18month rate, looks like I'll have to go through the song-and-dance, of re-depositing funds taken out of Simplii TFSA in 2018 to take advantage of the RBC 3.15% eSavings promo, do our 2019 contributions, $6K each, then go back to Meridian branch, open TFSAs, and do the T2033s, to get it all transferred over. Oh well ... may be worth it, especially if we stay with, and add to, Meridian TFSAs down the road ?

I still find it hard to believe that Simplii Financial refuses to offer GICs as an Investment option within a TFSA ... unless they've recently changed their policy? It's the reason we bailed on them in the first place, and I told them so.

JustMe2016 said
8 days ago I called a Meridian branch located near me and I asked them if I were to open a brand new TFSA account (2 actually 😉 ) and deposited $63,500 would I get the 1% bonus? After being put on hold I was told that yes they would 'bend' the rule and give it to me.

Actually to me it is not bending the rule but being logical as the purpose of the campaign is to attract new money. That I do a direct TFSA transfer, or write a cheque from another FI it is new money. But enough about the semantics.

I was also told that the 1% would not be added to the TFSA account but would be deposited in a regular saving account. I believe they call it 'Advantage' account.

Yesterday the accounts were open and I was surprised to being told that the 1% would actually be added to the $63,500 instead of being deposited in a separate account as I was told 8 days prior. And it would be added in a few days.

Therefore this change the calculation.

So if you invest into a 18 months GIC at 3.25% and get the 1% bonus added a few days later and with the interest compounded annually it will give you an average of 3.98% over the 18 months.  

So, it seems that some are better at "bending the rules" than others. Interesting...

Loonie said
I'm not sure that anyone has reported being able to just do a direct deposit at Meridian, but maybe I missed it.

If by direct deposit you mean to write a cheque for $127,002 to open two TFSA accounts, then yes we did.

($63,500 X 2) + $2 for membership.

Canadianbull said

Thanks justMe2016. I open 2 separate TFSA accounts.
63500 for my wife and the rest went into my account. I sent email to my Meridian financial advisor. Most likely he'll get back to me tomorrow.  

They told me I do not qualify for 1% bonus because I open a new tfsa account.