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Email this8:30 pm
April 6, 2013
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I saw this term in the Terms & Conditions of my 2½% new money offer. Only regular interest (no Additional Interest) will be earned on any interest paid into the account during the period:
15. Any interest paid into an Applicable Account, including Additional Interest, will not be treated as a new deposit for subsequently calculating Additional Interest payments.
7:42 am
September 11, 2013
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Yes, I noticed that too. Not a big deal, just lose a bit of compounding as promo interest portion will not be calculated/earned on interest earned.
9:03 am
May 20, 2016
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So we should move interest to other FIs with higher interest than Tang's 1% base interest
9:42 am
May 24, 2016
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Ooh, smart thinking, davidgeorge! I’ll do it
2:59 pm
December 12, 2009
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Norman1 said
I saw this term in the Terms & Conditions of my 2½% new money offer. Only regular interest (no Additional Interest) will be earned on any interest paid into the account during the period:15. Any interest paid into an Applicable Account, including Additional Interest, will not be treated as a new deposit for subsequently calculating Additional Interest payments.
They've always done this, or have for the past couple years. Look back. It's there. Promotional interest, or regular interest, is not counted as a "new money" for the purposes of the calculation. You still get the compounding effect in terms of the regular interest compounding on the paid promotional interest but not that "extra" benefit.
Cheers,
Doug
3:02 pm
December 12, 2009
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JenE said
Ooh, smart thinking, davidgeorge! I’ll do it
LOL, that's too much extra work. Gosh darnit, just leave it where it is for Pete's sake (no relation to Peter, the board administrator). 😉
Plus, if you do that, it'll (likely) be treated as a withdrawal in terms of determining your "additional balance". So basically, as I suspect, in terms of promo interest, it doesn't earn promo interest on itself but it does count against your balance in terms of what earns additional interest. Hope that makes sense.
Cheers,
Doug
7:31 pm
April 6, 2013
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As Doug described, withdrawals may be considered withdrawals of new money instead of interest paid under the current offer.
In a 2016 Tangerine offer, it was found that withdrawals were considered to be against principal first. 
10:26 am
December 12, 2009
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Norman1 said
As Doug described, withdrawals may be considered withdrawals of new money instead of interest paid under the current offer.In a 2016 Tangerine offer, it was found that withdrawals were considered to be against principal first.
Thanks Norman for making sense of my somewhat "circular" description. It does get a bit confusing, technical and highly "legalistic", though. 😉
You've clarified my thinking well, I think. Basically, "promo interest" isn't deemed "new money" for additional "promo interest"; however, much like the way credit card issuers apply payments to existing balances, any "withdrawals," likely because you can't differentiate (easily) what that withdrawal is from, it reduces your "new money" balance.
I'd be highly skeptical and even go so far as to advise against withdrawing the "promo interest". Nice try, though!
The banks have become "wise" to us "rate chasers," hence the T&C that are now several pages in length when they used to only be about 10 bullet points or less than two thirds of a page. 😉
Cheers,
Doug
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