HISA Promo 3.65% or 3.50% (formerly 3.00% or 2.75%) | Page 4 | Meridian Credit Union | Discussion forum

JenE said
During my conversation I was informed that the 2.75% was “annualized”, meaning that the actual rate to be earned would be 2.12%! Now, this is out of my math ability but perhaps someone else can decipher it?

How did you get from 2.75% to 2.12%?
What was your calculative process?

hwyc said
I am still confused over the interpretation of the annualized rates. Hopefully somebody will be able to post a data point after May 31st. I would be equally disappointed if the deposit is not earning daily (2.75% / 365)

11. Interest is calculated daily and paid monthly for both the Posted Rate interest payments and the Bonus Interest payments.

  

I am confused what you are confused about. These interest rate annualized blah blah has been the same way for years. Some compound daily, some monthly, the mechanic is the same.
I cant recall a FI tried to go sneaky to screw anyone ever this way. There are many ways to make money off the customers, being vague in interest calculation is not one of them. It can be easily, readily get called out and the class action lawsuit costs way more...

JenE said
Hermann - 2.12 was from Meridian rep.

Hwyc - my simplistic math - multiply 2.75 x 8, add 4 months of usual interest (.85) and divide by 12 = 2.116 (rounded to 2.12). This means if you keep the money in a full year, that’s what the interest would be annualized at. If you just deposit it for 8 months or less during the offer period, you get 2.75% on all of your amount. So much easier to understand when put in plain language, don’t you think  

That’s way more complicated than saying it’s 2.75% for 8 months savings acct.
That’s no different from a 9th GIC at 2.75%. If u understand the GIC, u understand the other offer. If anything u don’t get compounding from the GIC, while savings acct does. So its effective rate is actually higher!

JenE said
SMSO - I thought Hwyc didn’t understand the “annualized” concept, thus the way I answered. IMO your answers were not helpful, and neither is your last one. Remember, Peter wants us to be nice and polite. My last words on this particular post.  

my apology if you are offended but 2.12% is not the annualized rate.
The offer is 2.75% for 8 months, 2.75% is the annualized rate, consistent with how rates are quoted.
The 2.12% is how much one will earn IF they keep the money there for 1 year instead of 8 months, which is the expected return (including bonus) if one keeps their money there for a whole year, but not an "annualized" rate. Thats why no FIs will quote 2.12% as its more confusing to all.

savemoresaveoften said
When did Meridian change the limit for linked transfer to $10k only ?
And thats for transfer IN.... hmmm  

A long time ago, out at least. That's if you're executing from Meridian. If you transfering from say TNG or Hubert, execute from either one will be easier ...

savemoresaveoften said

ic, thx. Havent used them for the past year or 2 given no rate special from them.
Will contact them if at least transfer IN limit can be raised. I am giving them $ after all...  

So self serve is limited to $10k. If I need to give them more money, I have to call in for them to put it thru for me. Makes no sense at all, but for the 2.75% 8 month promo, will use them for now...

cgouimet said

You do need to be patient or use their help to pull funds into Meridian. But you can originate larger transfers from other institutions to Meridian. I have pushed 20-30k from TNG and Hubert to Meridian before ...  

yeah but for security reason, I dont want to have spider web of links btw different FIs. I use a center hub for all...

Effective June 9, 2022 High Interest Savings PROMO account (for new customers) has increased today from 2.75% to 3.15%.

And, yes, the promo is eligible for a joint account.

Stephen

Looks like Meridian CU increased their HISA to 1.25% from .85%. We may need to give them time to sort out their promo, because on the same Meridian CU web site it says "3%" in one place and "2.75%" in another.

It may also end up with people who already on promo (like me) getting 3.15%, but newly opened promo accounts getting just 3%.

PS. Just noticed they've updated T&C page to state "HISA Bonus Interest Rate Offer of 3.00%." Those who haven't signed for that promo before June 9 will be getting lower interest than those wo already did.

GR said
Meridian's website home page now shows rate was increased to 3%. Was rate increased again to 3.15% and not shown on home page?  

Nope. They reduced "Bonus Rate" for new promo accounts.

"Bonus Interest" rate is 1.75% for the Eligible Account. Bonus Interest is added to Meridian’s GTG HISA posted rate of interest as shown on Meridian’s website ("Posted Rate") to calculate the total amount of interest payable under this Offer. For example, Posted Rate of 1.25% on GTG HISA + Bonus Interest of 1.75% = the Offer rate of 3.00% (example uses interest rates current as of June 09, 2022). Eligible Members receive Bonus Interest on deposits to the Eligible Account during the Promotion Period. Any change to the Posted Rate will result in a corresponding change to the Offer Rate.