2.8% promo interest on new money to Savings, RRSP, TFSA (November 1, 2019 - April 30, 2020) | Page 3 | Simplii Financial | Discussion forum

PilotPete said
WARNING: All is not as it appears. Note the terms say: "For Eligible Accounts opened during the Offer Period, Promotional Interest is calculated, at the end of the Offer Period, on the Eligible Account’s average daily closing balance from the date the Eligible Account is opened to the end of the Offer Period (the “New Balance”).
So since interest is calculated on the basis of the AVERAGE daily balance FROM Nov 1st you will only receive interest at the rate of 2.52% on money deposited on Nov 18th for example! And the rate reduces, the later you deposit, because the zero balances in the account for each day FROM Nov 1st is included in the AVERAGE calculation.
Talk about devious!!!
  

you overthought how things work. On days you have $X in the account, you earn the current rate, whatever that current rate will be. If X=0 that day, u earn $0 that day.....

Yes, it is 2.8% for the days of the offer period that the new money is in the Simplii HISA. It is 0% for the days that the new money is not in the account.

You are mixing up the cases of account opened before and account opened during the Offer Period.

According to the terms and conditions, for an account opened on January 31, 2020 (during the Offer Period), the average balance will be calculated from January 31, 2020, and not from November 1, 2019:

For Eligible Accounts opened during the Offer Period [November 1, 2019 - April 30, 2020], Promotional Interest is calculated, at the end of the Offer Period, on the Eligible Account’s average daily closing balance from the date the Eligible Account is opened to the end of the Offer Period (the “New Balance”), to a maximum New Balance amount of $500,000 in each of a primary account holder’s (i) Eligible Savings Accounts, collectively, (ii) RRSP Accounts, and (iii) TFSA.

In your example, the average balance is then $200,000 and not $100,000.

Sorry Norman,
I now see the reason for the confusion.
What you say is correct for NEWLY opened accounts, but as in my case I was assuming (presumptuously obviously) that moneys were ADDED to existing Simplii HISAs, since Simplii itself appears to assume this by continuously referencing the account balance at Oct 31st.
Pete

Pete, your math is incorrect & you have confused poor Ryan on the phone.

As you state, "the average daily balance for the 182 days is $100,000." You then calculate it over 91 days. The promo interest in this scenario would be 100,000 x .017 divide by 365 x 182 = 847.67

I have been on these promos many times (with an existing account) and know first hand how they calculate average daily balance.

Sorry but that makes no sense at all and Ryan DID check with his superiors before submitting his conclusion.
Why on earth do you think Simplii would pay interest for ANY period during which you had no money on deposit?
BTW we should not be adversarial. I am doing this as a public service, taking valuable time to caution potential investors about misleading promotions.
WE are on the same side.
Check it out with Simplii for yourself if you doubt my word.

Unfortunately, Simplii's wording seems unnecessarily complicated and is not "simple". Ignore the "fine print" and don't try to interpret what it means. The bottom line is that the calculations from their previous promos all yielded exactly the same results for interest paid as you would expect from any financial institution.

If you read the terms you will see that promotional interest "is calculated for the Offer Period", i.e. the full 182 days (or, for new accounts, from the day the account was opened to Apr 30/20). Says nothing about when you put your money in, everybody gets a promo interest calculation based on "the Offer Period".

So if you already have an account with zero balance and put in $100K on day 92, your daily average for the Offer Period is $50K. So you'll get promo interest for 182 days based on $50K daily average. If you want to view that as getting interest for 91 days when your account had zero, fine, they make it up by only giving you promo interest on half your balance during the last 91 days. In any event it's the same as giving you zero for 91 days and then promo interest on your $100K for the next 91 days.

Just CIBC's way of doing the calculation. Unusual perhaps, not misleading, in my view, if you read the fine print closely (which we're always been cautioned to do before signing on a dotted line).

Bud,
I'll let Bill answer that.
My money's in Motive Financial (straightforward 2.8%)