Data Point: Sept 16 retention offer | Tangerine Bank | Discussion forum

howiemandel said

This is the game Tang forces us to play. I was also warned by the CSR that calling back in may not get me the same 2.5% offer as the money is already out. Seems like they are resorting to punishment tactics!

It strikes me that this would have been the perfect opportunity to ask what exactly the rules are, since CSR has told you, in effect, that there are some. (Not that I'd expect a clear answer, but it would force them, ultimately, to say they don't know and have no basis for making such a threat.) In reality, you "may not" get that rate regardless of where the money is.

It may indeed be a punishment tactic, but at least with mommy and daddy you usually knew what the rules were.

This is particularly comical because they seem to forget that this is a savings account, not a GIC. No matter what the rate, no matter if you accept it or not, you might just take all your money out next week anyway, for any number of reasons.

If they want the rate to be a reward for "good behaviour", then they'd better tell us clearly and contractually what that behaviour is!

Keep us posted!

Yes I would have to agree with Speedwagen. 2.5% will keep me there for 3 months. My 2.4% promo offer is ending next week and I will give a call probably tomorrow. I'm not sure what will happen. Probably nothing. I always go into these expecting nothing. I am prepared to move my 100K to PC (2.25% registered) if no promo keeps me with Tang. Maybe a promo pops up again in October.

howiemandel said

Hi everyone,

Just thought I would share a data point on the boards, i called in to withdraw 100k as my promotional rate of 2% is ending mid Sept. I was offered 2.5% for the next 3 mos up to 500k balance. I decided to gamble and proceed withdrawing out...ill take a minor hit on a lower interest earning account for 2 weeks in hopes of seeing Tang dish out a targeted offer by the end of this month. This is the game Tang forces us to play. I was also warned by the CSR that calling back in may not get me the same 2.5% offer as the money is already out. Seems like they are resorting to punishment tactics!

Wow...that is some tricky game they are employing! It'll be interesting to see if the top secret fall offer ends up being 2.5% (or higher). No reason to think it wouldn't be higher, considering their "fall offer" is usually their best offer of the year, based on the last three years. Moreover, there's been no change to the BoC's prime rate in nearly two years (though I think they should just bring it down to 0% to provide some stimulus to the moribund economy...it's not like 0.5% is doing much!).

If you take their offer, you're committed to the 2.5% offer as your funds would be on deposit as of the date they take the "snapshot" of the "eligibile account" balance(s). They'll say they may not have an offer or that it'll be as high or higher than the targeted, preemptive one they offered you or that you may not receive any offer and the more people they get, the reduced interest expense in the form of a 60 basis point spread.

Interestingly, Tangerine used to have like $25 billion in mortgages, $20 billion of which BNS put into "run-off" in 2012 meaning that they weren't eligible to be refinanced with higher borrowing. BNS' most recent report shows that's already down to $7.5 billion, so they've succeeded in getting that "run-off" portfolio down by $12.5 billion. There's roughly another $5 billion in prime Tangerine mortgages that they've retained and Tangerine has actually slightly grown their deposit book to between $30 and $35 billion so it's proving that Scotia really did just want them both as a "future bet" but, more importantly, as a capital buffer.

Cheers,
Doug

Revisiting my earlier post, I was baffled by HowieM's rejection of Tangerine's 2.5% offer, while giving him the benefit of the doubt that perhaps it only applied to new deposits. Loonie weighed-in on the matter by implying that HowieM simply decided to hold out for a better deal in a couple of weeks.

Now, bernija appears to have revealed that the offer wasn't for new deposits by posting that it was a renewal offer. Time will tell if HowieM's gamble paid off???

Loonie said

I think Howie's tactic implies that he is expecting an upcoming offer valid on new deposits only.
Looks like benija's recent offers were probably on existing deposits.

Whatever offer Howie gets could be either type, but if it's new money and a good rate, he'll do well. If old money is included, then he just has a little inconvenience moving it back and forth. He's trying to cover his bases that way, but impossible to predict the result. Some people have been punished for moving money out, or so it seems, at least in the relatively short term.

I think it'll still be a "net new money" offer - you just won't have to receive an e-mail or online banking "interruption"-targeted offer this time, possibly, which is how it used to be.

If you want "existing money" included in the offer, you'll still have to phone Tangerine and threaten to "move your money" to get that included in the offer, most definitely.

Cheers,
Doug

I got the 2% I've been getting for a while renewed last week after I called, which I hate to do.

It seems most people around are getting much more, and I find that quite unfair (not that they're getting more, but that I'm getting less).

I've been a client since just about the beginning.

I just called them again to ask for the 2.5% rate, telling the CSR I should get the same rate as everybody else. She didn't argue or ask any question, and gave it to me - 2.5% until December15, increased from current 2%.

Without this great forum I would never have even known about this rate - thank you guys! - though I really resent having to call Tangerine.

Edit: corrected date.

re. "So I moved my money to a new promo at TD for 2.20% until January." What new TD promo?

Meridian's current going rate is down to 1.5%.

@MarkFog: re: TD offer. Do you mean that money deposited by Oct 31 will get the rate until Jan 31? That's almost 5 months, better than the other deals going around. It's often hard to get promos on non-registered money in Jan as the banks are content to just chase RSP, TFSA deposits.

Thanks, MarkF. I don't see any reference to it on their website, so must have just ben targeted, as you suggest. However, that shouldn't prevent anyone from going into a branch and asking for a match.

Being a much larger bank, it has bigger deposit limits than we are used to seeing. If only we had $5 million..., we could "earn" almost $46K!