Scotia Offer up to 1.8% till Aug 31 if you like to play games | Page 2 | Scotiabank | Discussion forum

Norman1 said
I think the 0.97% comes from the 360 day period:

Regular Interest	Bonus Interest	Premium Interest				Ultimate Package
0.05%	1.20% 110 days	0.15% 90 days	0.25% 180 days	0.35% 270 days	0.45% 360 days	0.10%
	0.00% 250 days

For the 360-day period, the 1.2% Bonus Interest for the first 110 days works out to be 0.37% over the whole 360-day period. The result is 0.97%:

0.05% + 0.37% + 0.45% + 0.10% = 0.97%  

Good work. I think you are correct. When I spoke to the BNS rep I simply asked him what is the blended rate if I leave the funds in the account for 360 days. He got back to me the next day and said 0.97%.

cristunity said

There's also the fact that regardless of the math to determine how much you'd get, you would need to (and want to) file an adjustment with the CRA -- because some of the interest you had been reporting on your tax returns didn't actually materialize for you.

For example, you may have reported interest of $200 in year 1, $220 in year 2, and $240 in year 3. This is on the full investment. But then you cash out some of it, and that $200 in year 1 becomes something like $190 (or whatever). And the same for years 2 and 3. So you'd have to find a way to tell the CRA "The $200 interest I faithfully reported 3 years ago is actually $190, so give me back the taxes I paid on that $10 difference."

I don't think this would be a fun exercise.  

I thought about what I would do if I had clawback of some of the interest I paid tax on as well. Not going to cash so I will not have a problem.

I opened a Momentum PLUS Savings account. Very quick. I am sure less than a minute. I activated the deal. Very quick as well. Now set a reminder for May 31st to check if I have surplus funds to get 1.4% for 90 days until August 31st.

Norman1 said
I think the 0.97% comes from the 360 day period:

Regular Interest	Bonus Interest	Premium Interest				Ultimate Package
0.05%	1.20% 110 days	0.15% 90 days	0.25% 180 days	0.35% 270 days	0.45% 360 days	0.10%
	0.00% 250 days

For the 360-day period, the 1.2% Bonus Interest for the first 110 days works out to be 0.37% over the whole 360-day period. The result is 0.97%:

0.05% + 0.37% + 0.45% + 0.10% = 0.97%  

Norman1: Thank you so much for all that you do on this site. I agree with comments above this thread: almost requires a PhD (or Norman1) to translate.

And Loonie, I also appreciate your comments above.

I think of another thread on this site re seniors (sadly, also Scotiabank -- is there a trend here?!). Good golly -- if this BNS / Scotiabank jib-jab (aka: if-this-then-that) has all of us confuddled -- I can only extrapolate as to how confusing (outrageously so!) this 'promotion' is to the general public. Le sigh ...

cristunity said
For us in here, it's a different story -- opening HISAs and GICs and doing the CDIC/DICO/etc. tango is kind of recreational.

It may be easy and kind of recreational, but it comes with inherent risks. Every time an account is opened at a new institution, that institution makes a credit check for the new client. IIRC, a few years ago, there was a data breach affecting new client credit applications. (Capital One)

Every window into your home/personal information is another access point for potential illegal entry.

cristunity, exactly, it's about human behaviour, all successful businesses get that. Though there are a few extremists who spend lots of time worrying about every dollar of their money, the vast majority of people would rather spend their lives doing other stuff than spending their hours trying to save $20 here, $20 there. Especially if they're not poor, which most people aren't. Just the way it is, and that silent and vast majority is where the money is to be made.

Bill said
cristunity, exactly, it's about human behaviour, all successful businesses get that. Though there are a few extremists who spend lots of time worrying about every dollar of their money, the vast majority of people would rather spend their lives doing other stuff than spending their hours trying to save $20 here, $20 there. Especially if they're not poor, which most people aren't. Just the way it is, and that silent and vast majority is where the money is to be made.  

cristunity said

Obsession with money becomes a habit. People believe that they can switch it off once they have enough. But that's the delusion: it is never enough. There is always going to be someone who has more. Comparison is the thief of joy.  

Valid comments above. I am sometimes amazed when I read various posts on this blog. Some posters sound like they are going to have a coronary because they had to pay a $2 service charge (they think they should never have to pay a transfer fee or a service charge even when they were late paying a bill) - or that the transfer of funds from one FI to another took more than 1 day and they lost $1.50 in interest. Or they were not offered a good enough promo ("they are a dishonest FI"!). Or the posters who did not get their free "made in China" chocolates from FIs (always wanting something for nothing.) etc. I guess this is all part of the "obsession" quirk mentioned by Cristunity above. There truly is so much to enjoy in life other than obsessing constantly over every $1.

It's not a serious issue if you blow $10 to withdraw $100 if your life is otherwise rich and fulfilling and you're not poor, some might say that's "winning". I get the impression that there are a very few people (out of all the millions of Canadians there are a very few regulars on here trying to save every penny) who've got nothing better to do (it's actually sad) than spend their time on their money every day. And many young people are cavalier with fees etc as they're too busy having fun, way better things to do (those days were awesome!) and when they settle down and life starts to get routine and more boring they then get interested in not throwing their money around so carelessly, it's a natural progression. But only a tiny fraction end up having nothing better to do than daily moving their money here and there to avoid a $2 fee, etc - and that's healthy for the banks, and very healthy for society.

Many of us are retired, semi-retired or at a point in life where we cannot expect to be able to increase our income. Avoiding getting "nicked and dimed" is the chief way we can maintain our financial stability. It makes sense.

Keep in mind that, because of taxation, a penny saved can often mean up to 1.5 pennies earned! (Sales taxes as well as income taxes.)

Waiting a day before purchasing things to "cool off" is helpful too. And avoiding pre-commited payments like subscription boxes and gym memberships we don't really want or need is important. Not to mention media services and overpriced internet and mobile plans.

I have an amplied digital antenna and a non-cable digital TV recorder. I get seven perfect TV channels and use the local library for programming, too. I'm fortunate to live where I have these opportunities, but plenty of people don't need full cable.
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