New Simplii HISA Offer: 5.5% on new deposits - ends November 15, 2024 | Page 3 | Simplii Financial | Discussion forum

richardk said
Has anyone tried to verify that the correct amount of interest is being added?
I've done the math on my son's, my wife's and my own account, and the promotional interest rate/amount always falls short. I do similar calculations at Tangerine and i'm always within a dollar or two or within a fraction of a tenth of percent.
At Simplii, I factor in the balance at Jul29th since it doesn't get the promo rate... similar to Tangerine's model.

My son's balance through Sep didn't fluctuate at all and that made the calculations simpler. He attracted 0.34% or 0.36% for regular interest on Sep25 depending whether you used 30d for Sep or 28d since the last regular interest payment on Aug28. And that aligns nicely with the posted rate of 0.35% for his tier. But for the promo interest he attracted 4.7% for the 30d of Sep or from date of the Sep3 promo interest deposit for a combined rate of 5.05% .... falling far short of the total offered 5.5% promo rate.  

Somebody over here said Simplii pays interest and promotional interest till the last Wednesday in the month. For example, I got the rate offer starting from Aug 1, on August 28, received the regular interest and Sep 3, received the promotional interest till Aug 28. I calculated these interests, correct. Today Oct 2, I received the promotional interest , I assumed it was for time from Aug 29- Sep 25, but I have calculated interest and promotional interest are correct. Anyway, I trust Simplii, it is a division of CIBC.

Norman1 said

richardk said
Has anyone tried to verify that the correct amount of interest is being added?
I've done the math on my son's, my wife's and my own account, and the promotional interest rate/amount always falls short. I do similar calculations at Tangerine and i'm always within a dollar or two or within a fraction of a tenth of percent.
…

The calculations, for Simplii or for Tangerine, are suspect if the results are around $1 or $2 off! Incorrect rounding, for example, would throw off the calculated interest at most 15¢.

I just did the calculation for Simplii. The results are within ½¢ of the regular interest and promotional interest that Simplii had paid for September.

The regular interest paid September 25 is for the twenty-eight day period August 29 to September 25. Same with the promotional interest paid today (October 2).

During the period, regular HISA interest rates changed on September 9. As a consequence, the promotional interest rate also changed that day.  

I do not calculate the regular and promotional interest separately, I calculated 5%, the regular and promotional interest =( my balance exceeded that on July 29)*5%/365*28 days.
My Tangerine regular and promotional interest were not correct, my calculations were more than about $1. I do not know why.

InterestThis said
If you look at your Simplii bank statement, it will show the dates of the term.
August 29, 2024 - September 25, 2024
Calaculating using those days, the interest came out correctly.  

Any idea? Why regular and promotional interest paid by Tangerine were less than my calculations? My starting date was Sep 5, 2024 at 5.1% for new deposits, I calculated my cash and TFSA account, Tangerine deposited regular and promotional interest a little bit less than what I calculated, less $0.82 and $0.05, because regular rate is 0.3%, so I calculated roughly, regular and promotional interest= (balance exceeded that on Sep 4)*5.1%/365*26 days. Actually balance on Sep 4 was $7.5 only.

Thanks to everyone who responded.
With the info everyone provided, I created a spreadsheet to redo the calculations and am happy to report that I was off by only 1cent for the regular interest rate calculations on 2 of the 3 accounts and bang on for all 3 accounts for the promo rate calculation.

It occurred to me during the calculations, that for absolute accuracy the regular interest that is deposited on the 25th needs to be subtracted from the end of day balance during both the regular and promo calculations since it likely gets deposited at 1 second after midnight but gets back-dated to the 25th.

usephrase said

Any idea? Why regular and promotional interest paid by Tangerine were less than my calculations? My starting date was Sep 5, 2024 at 5.1% for new deposits, I calculated my cash and TFSA account, Tangerine deposited regular and promotional interest a little bit less than what I calculated, less $0.82 and $0.05, because regular rate is 0.3%, so I calculated roughly, regular and promotional interest= (balance exceeded that on Sep 4)*5.1%/365*26 days. Actually balance on Sep 4 was $7.5 only.  

This year has 366 days.

richardk said

Regular interest calculations should include the funds that were there on Jul29th, but promo interest calculations should exclude them. So you can do the simpler combined calculation only if your Jul29 balance was zero.  

yes, July 29 was $0. Thanks

In Offers it says,
"Refer your crew & earn $125. Plus, they’ll also earn $50."

It seems the marketing "crew" are 20-something Swifties, which explains a lot.

and Tang is 0.30% standard rate. For sure they do this, as there are some people who leave large amounts of cash in their savings at those low rates.

Top Dogg said

Crazy to think in this day and age someone would have the audacity (yes I said it!) to do something like that but I'm sure it continues to happen after every expired promotion other the banks/credit unions would most likely stop with these short-term promotional offers.  

I know 2 people who have over 100K in low-interest bank accounts like that. They are afraid of "losing it" and just let it sit there. They both lost money in the past, so prefer to keep it in their bank mattress. There must be tons of people like that. So that is why its good to own bank stocks.
Meanwhile everyone on these kinds of forums goes into a panic if we lose 1 days interest!