Another 2.80% Promotion for existing clients starting April 1, 2022 | Page 6 | Tangerine Bank | Discussion forum

COIN said
What does this mean in plain English? This is suppose to be the 2.80% promotion.

"Promotional Interest
“Promotional Interest” is the interest earned on Eligible Balances as part of this Offer, calculated at a “Promotional Interest Rate” of 2.80%, which is the sum of the applicable posted rate of interest listed on the Bank’s website (the “Posted Rate”) and an additional top-up rate of interest to make up the difference (the “Top Up Rate”). Therefore, Promotional Interest earned is the sum of: (1) interest earned on Eligible Balances calculated at the Posted Rate, and (2) additional interest earned on Eligible Balances calculated at the Top Up Rate (“Additional Interest”). The Posted Rate may change at any time without prior notice, resulting in a corresponding change to the Top Up Rate so that Promotional Interest remains unchanged during the Promotion Period.

Example: If the Posted Rate is 0.40%, a Promotional Interest Rate of 2.50% will be made up of the Posted Rate and a Top Up rate of 2.10%. If the Posted Rate changes to 0.50%, the Top Up Rate will change to 2.00% such that the Promotional Interest Rate will remain at 2.50%.

Subject to the limits and qualifications outlined in these Terms and Conditions, the Promotional Interest Rate will apply to Eligible Balances and be calculated daily at close of business (ET) and paid monthly. Eligible Clients will receive Promotional Interest earned in two separate interest payments: (1) interest earned on Eligible Balances at the Posted Rate is paid at the end of the month in which it was accrued, (2) Additional Interest is paid at the start of the month following the month in which it was calculated.

On days during the Promotion Period, where the combined balances in the Applicable Accounts are above $5,000,000, the Promotional Interest Rate will apply to the maximum amount and the Posted Rate will apply to that portion of the combined balances in the Applicable Accounts that is over $5,000,000. Promotional Interest Rate will be applied to balances in the oldest Applicable Account first and subsequently to other Applicable Account(s) in the order in which the Account(s) had been opened until the maximum combined balance of $5,000,000 has been reached."  

I read that to say you're getting 2.8% total. That's the 2.8% Promotional Rate.

TNG have a posted rate currently of 0.1% on their savings account.

At the end of each month, you will get a credit to savings labelled "Interest"; that's the posted rate of 0.1%. Then you will ess another credit labelled "bonus interest"; that's the 2.7% addon to get you a total promotional rate of 2.8%.

If at any point, their base rate changes up or down, your bonus rate will also change so as to give you a total of 2.8%.

COIN said
What does this mean in plain English? This is suppose to be the 2.80% promotion.

In simple terms you receive 2.8% interest paid monthly period. What makes it confusing is when they refer to the posted rate changing, think of it as a BoC rate announcement that they are increasing the the interest rate, which then effects Tangerine's posted rate accordingly. Example: If the BoC increases the rate by 0.5% and Tangerine followed increasing their base rate by the same amount, then the bonus interest would be lowered an equal amount which results in the same 2.8% payout.

COIN said

Tang should just say you get 2.80% come heck or high water.

I vaguely recall that HSBC and/or Manulife Bank have a weird formula where the promo rate can vary up or down depending on the movement of the base rate. Maybe my memory is flawed?  

Your memory is not flawed. HSBC, Meridian and Manulife have base rates that float and effect the total interest paid. I'm sure there are other institutions that do the same. This differs from Tangerine and Simplii where the total interest paid is fixed over the term of the offer, irrespective of changes to the base rate. With an expected BoC rate increase expected on June 1, a floating base rate can be beneficial. I've experienced the opposite effect in early 2020 and it was annoying.