120 days = 5.40% (new money, July 17 to Sept. 30, 2023) | Motive Financial | Discussion forum

Norman1 said
Motive new money promo for their 120 day 5.4% GIC:

120 Day GIC terms and conditions

Promo to run from July 17 to September 30.  

It looks good, except for the part that it can only be applied to "New money" i.e. transferring existing money from Savvy Savings to GIC will not qualify for 5.4% rate.

From terms & conditions: "New Money is defined as funds not held on deposit with Motive Financial prior to July 17, 2023."

Sounds similar to Tangerines Promotions except the GIC isn't liquid.

Patch002 said

It looks good, except for the part that it can only be applied to "New money" i.e. transferring existing money from Savvy Savings to GIC will not qualify for 5.4% rate.

From terms & conditions: "New Money is defined as funds not held on deposit with Motive Financial prior to July 17, 2023."

Sounds similar to Tangerines Promotions except the GIC isn't liquid.  

Not as flexible as tangerine HISA, but 5.4% lock in for only 120d is not shabby, esp for those who does not win the Tang 5.5% lottery.

Nehpets said
I would like to clarify the terms describing the calculation of interest concerning:

3. How Interest is Calculated and Paid
The special annual interest rate of 5.40% is a combination of the regular annual interest rate set by Motive Financial payable on a 120-day GIC term (“Regular Interest”), plus the promotional annual interest rate (“Promotional Interest”) that is calculated at the end of the Offer Period on the total Balance (as defined below).

Interest will be set at the special annual interest rate and paid at maturity. Interest will be calculated including the first day of the term but excluding the last day of the term. Interest is calculated only on the original principal and not on the sum of the principal plus accrued interest.

Regular Interest and Promotional Interest rates may change at any time without prior notice. Regular Interest is posted on the Motive Financial website.

Are they saying the basic and/or promo interest rate can change during the term of an existing GIC or that the interest rate offer can change during the promo period for new GIC's?

I recall Manual Life played this game by eroding the promo add-on rate eventually making their promo worthless.

Stephen  

its a GIC / fixed deposit, so technically they can NOT lower the rate once committed. And no where does it mention its variable rate. But that last sentence does make me wonder cuz it DOES grant them the legal option to lower it !

Its not for me as I am lucky enuf to have a 5.25% Tang extension. Transfering over and lose interest over the transfer time is more or less the extra 15bps diff. So my money stay put at Tang.

At beginning of T&C it says "5.4% per annum" rate. That rate for the term would be an annual rate of over 16.2%.

Loonie said
I would disagree with savemore on Motive's responsibility. I think they CAN change it, regardless of being a GIC as they stated in T&C that they could.. DUCA has clauses like this with some of their HISA offers - and has sometimes reduced the rate.
However, I believe they will only do this if market conditions require it, i.e. if interest rates generally fall - which seems unlikely to me in this time farme. Seems to me they are betting rates will rise but they won't likely increase this rate.

Reading through all the T&C is beyond me right now, but does anyone know if this is an annual rate or a term rate? Probably annual as that will be cheaper for them.  

The Promo is 5.4% which currently consists of 4.1% Savvy Savings rate and 1.3% additional rate.
If the Savvy rate were to increase, say to 4.5% then the Promo of 5.4% consists of 4.5% Savvy rate and 0.9% additional rate.
If the Savvy rate were to decrease, say to 3.5% then the Promo of 5.4% consists of 3.5% Savvy rate and 1.9 additional rate.

Patch002 said

The Promo is 5.4% which currently consists of 4.1% Savvy Savings rate and 1.3% additional rate.
If the Savvy rate were to increase, say to 4.5% then the Promo of 5.4% consists of 4.5% Savvy rate and 0.9% additional rate.
If the Savvy rate were to decrease, say to 3.5% then the Promo of 5.4% consists of 3.5% Savvy rate and 1.9 additional rate.  

In fact, the terms and conditions state that the rate of 5.40% p.a. is based on the "regular annual interest rate" (as posted on their website), not based on the Savvy savings rate. For the 4 month GIC, the regular annual interest rate is currently 4.15% p.a. and the promotional interest rate is an extra 1.25% p.a. for a total of 5.40% p.a.

Bill said
If you buy one of these gics your rate is then fixed for your 120 days.

What they mean re changing the rate is that the current 5.4% promo offer rate may change for new buyers before offer period expires on Sept 30, they are not committing to necessarily keeping this offer available to Sept 30.  

That’s my understanding as well, in contrary to what Loonie thinks.
Don’t think Motive will run any reputation risk when calling it GIC while reserving the rate as they please, while after investors commit to 120 days.

Patch002 said
One can open a GIC on September 5, 2023. 120 days later, it will be Jan 2, 2024.

Interest will be paid at maturity therefore income tax (if applicable) is deferred to a subsequent taxation year.  

...and then you could roll some or all of it right into your TFSA for 2024! - if so inclined.

@Peter, shouldn't this offer be noted on the promo page?

Thanks!