SImplii Financial - 3.0% Interest on New Deposits until February 28, 2018 | Page 4 | Simplii Financial | Discussion forum

2of3aintbad said

We'll see in March, but I think that you should not compound the 2% column, instead:
31-Dec-2017 31 0.169863%
31-Jan-2017 31 same as above
28-Feb-2017 28 0.153425%
Total 0.6575%

The 2% promotional interest was not compounded. It is not paid during the period. I did not add the accrued promotional interest to the balances used to calculate regular 1% interest and 2% promotional interest.

The regular 1% interest does compound. I added it to the account balance at the end of each month which sets the account balance for the next month.

Consequently, both the promotional interest, as well as the regular interest, for December is calculated on the account balance of 100.0821…% and not 100%. For the month of January, both would be calculated on the account balance of 100.1671…%.

I didn't see any exclusion from the Additional Balance in the fine print for the regular interest. Just an exclusion for existing money in a Simplii Financial account as of October 31:

1. The Promotional Interest is calculated on the portion of the Eligible Savings Account’s average daily closing balance during the Offer Period that exceeds the closing balance as at October 31, 2017 (the “Additional Balance”) to a maximum of $500,000 in Additional Balances across all of an account holder’s Eligible Savings Accounts. If an Eligible Savings Account is overdrawn as at October 31, 2017, the closing balance is deemed to be $0.00. Promotional Interest will not be paid on existing funds that were in a Simplii Financial account as at October 31, 2017 and are transferred to an Eligible Savings Account.

Ooh, I was on vacation so in a way, it's fortunate my balance was barely over $10 😛 Time to move money from Tangerine over.

I think you're right, bhuc. Their wording and punctuation etc., cut-and-pasted:
"The Promotional Interest is calculated on the portion of the Eligible Savings Account’s average daily closing balance during the Offer Period that exceeds the closing balance as at October 31, 2017 (the “Additional Balance”) to a maximum of $500,000 in Additional Balances across all of an account holder’s Eligible Savings Accounts."

So, if you didn't put in your max deposit on the first day and leave it there for the duration, you've already lost, it seems. It's essentially a GIC that was only available for one day, and progressively discounted every day thereafter for later investments.
I am reminded of why I never opened an account with PC.

as my dad would have said, "Son of a gun!"
Why can't they use the same language as everyone else, then?

I filled in their online application form last week and never received a response. So I called them today and apparently they never received it. Then they told me that if I wasn't an existing client, they'd need all kinds of other info (e.g., credit check), so that they couldn't have done it online anyway.

So in the meantime, my personal info is out there in the ether somewhere.

Wondering if anyone else has had a similar experience?

Norman1 said
There is a subtle difference that shows up when there are daily closing balances that are below the closing balance of October 31.

With the average balance method, some of the Promotional Interest accrued to date is "taken back" should one withdraw, during the Offer Period, all the new money plus some of the original money that was there at the close of October 31.  

hmm that doesnt sound fair. Under that scenario, wouldn't the extra balance just sets to zero for the promotional int period. What you earn previously should not be "taken away" just because you withdraw some of original money.

e.g.
original money = 10k
day1 new money = 50k
day1 thru 10 promotion interest = 50k X 2% X 10/365
day11 withdraw = 55k
day11 promotion interest = $0, day1 thru 10 earned $ will be paid out at end of promotion

savemoresaveoften said

hmm that doesnt sound fair. Under that scenario, wouldn't the extra balance just sets to zero for the promotional int period. What you earn previously should not be "taken away" just because you withdraw some of original money.

e.g.
original money = 10k
day1 new money = 50k
day1 thru 10 promotion interest = 50k X 2% X 10/365
day11 withdraw = 55k
day11 promotion interest = $0, day1 thru 10 earned $ will be paid out at end of promotion  

As Bill calculated, the average of the closing balances for the 11 days would be $55K. Promo interest would be paid on $55K - $10K = $45K for 11 days.

That had the effect of negative day11 promo interest, calculated on a new money balance of -$5K and not zero:

$45K x 2% x 11/365
= $495K x 2%/365
= ($500K - $5K) x 2%/365
= ($50K x 10 - $5K) x 2%/365
= $50K X 10 x 2%/365 - $5K X 2%/365

In my example, I thought the average promotional balance will be calculated as follows, assume 11day is the total promotional period:

$50k X 10 / 11 = $45,454.55 (10day at $50k over, 1day at $0)
promotion interest on that will be $45,454.55 * 2% * 11/365 = $27.4

This is the same as earning 2% on $50k for 10 days
$50k X 2% * 10/365 = $27.40 (day 11 earn $0 promotional interest since below original balance)

In other words, just the fact that day 11 withdrawl results in balance below original balance does not penalize you on the promotional interest already earned.

I see what you mean now. Am I correct to say as long as your balance never dips below the Oct31 balance, what you earn in promotional interest is the same daily promotional interest on daily excess balance ?

Simplii being added to the list?