Has Tangerine Promotional Interest Calculation Changed ? | Tangerine Bank | Discussion forum

AlainJF, are you talking about their "new money" promo? I would be surprised if interest deposits count as Eligible Deposits. BTW, I search for "excluding Promo" in my T&C but cannot find the text.

There is a scenario they didn't say clearly to me. Interests are calculated & added to the balance monthly during the promo period, let say $10. If I make a $10 withdraw later from the account, am I withdrawing the interest amount, or will the eligible balance drop by $10 ?

COIN said
Tangerine is still easier to understand than Simplii where you have to wait until about 15 days after the promo ends to get your promo interest.  

I agree. I completely stopped using Simplii for this exact reason.

"Promotional Interest" is excluded in the 4.3% New Money Savings Campaign offer (October 4 to December 31) I received. "Promotional Interest" is all the interest earned on the "Eligible Deposits":

5. “Promotional Interest” is the interest earned on Eligible Deposits made to Applicable Accounts each day during the Offer Period. “Eligible Deposits” for any day during the Offer Period is the excess of (i) the sum of end-of-day balances in all Applicable Accounts per Applicable Account Type (excluding Promotional Interest) over (ii) the sum of end-of-day balances in all Applicable Accounts per Applicable Account Type as at October 3, 2022, to a maximum of $1,000,000 (in the currency of the Applicable Account), subject to the exclusions in Section 10 below.

That is further discussed later in the terms:

8. A Promotional Interest Rate of 4.30% will apply to Eligible Deposits under this Offer. Eligible Clients will receive Promotional Interest in two separate interest payments: (1) interest calculated at the Posted Rate, (2) an additional interest payment that represents the excess of Promotional Interest over Posted Rate interest (“Additional Interest”). For clarity, Promotional Interest equals the sum of Posted Rate interest and Additional Interest. Payment of Additional Interest will be made to the Applicable Account at the start of the month following the month in which it was calculated. The Posted Rate may change at any time without prior notice, resulting in a corresponding change to the Additional Interest rate so that the Promotional Interest Rate remains unchanged. Notwithstanding the above, the Bank may change the Promotional Interest Rate at any time without prior notice.

Confusion between "Promotional Interest" and "Additional Interest"?

Vow I never paid attention to that fine print. So any interest posted each month is earning zero effectively !

hwyc said
AlainJF, are you talking about their "new money" promo? I would be surprised if interest deposits count as Eligible Deposits. BTW, I search for "excluding Promo" in my T&C but cannot find the text.

There is a scenario they didn't say clearly to me. Interests are calculated & added to the balance monthly during the promo period, let say $10. If I make a $10 withdraw later from the account, am I withdrawing the interest amount, or will the eligible balance drop by $10 ?  

My understanding is that there are a couple of factors here in interest calculation. Assuming the everyday rate is 2.00%, promo rate is 1.50%.
It appears that Tang reference point, in 'new money', is any additional money added to the account balance after the start of the promotion. Ex. if one had $10 before the promo rate activation, then added money in excess of the $10, that will earn him the promo rate, which is every day advertised rate + the bonus rate:
1. If one had $10 before the promo rate activation, then deposited
$100 during the promo period, he will have earned 2.00% on the $10 and 3.50% on the $100 (2.00%+1.50%);
2. If one had $10 before the promo rate activation, then deposited $100, then withdrew $30, he will have earned 2.00% on the $10, and 3.50% on the amount, up to the $100. In this case, up to the point the $100 is untouched, or the same rate for what is remaining from the 'new money' in the event of a withdrawal, say $70;
Of course, this is calculated daily, on the balance in the account. I believe Tang subtracts, in its calculation, the added interest it pays to the account.