OTR - Tangerine Savings Account rate 0.70% effective March 7, 2020 [down to 0.40% March 20] | Tangerine Bank | Discussion forum

"A Promotional Interest rate of 3.00% 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."

I hope I am reading this right for I still expect to receive 3% until May 31st as they offered. Tangerine states it should increase the promo rate to keep it at 3%.

For what it's worth, I read, "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," as there being three interest rates:
- Base rate (A)
- Additional rate (B)
- Promotional rate (Sum of A+B)

which is probably how you read it. However, that wording does clarify the earlier ambiguous wording such that we essentially get screwed out of additional interest when the base rate is rising as there is no change to the Promotional rate because the Additional rate would fall by the corresponding rise in the Base rate.

Thus...

Moral of the story... avoid Tangerine net new money promotions when the BoC is on a rate rising trend. 🙂

Cheers,
Doug

GR said
Tangerine CSR today confirmed that the 2.75% promo interest rate remains unchanged and will not be affected by the reduced base rate.
If anyone finds out differently, please post.  

I concur. The terms of the special rates are as follows:

"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"

I find it interesting that Tang base rate dropped to 0.7% from a 50 bps drop at the BoC to 1.25%! Back when the BoC rate was just half a percent, Tangerine was 0.8%. Or am I not remembering correctly?

Edit: just checked. BoC rate was 0.5% in July 2015 and Tang was 0.8%

Nice. That's the lowest rate I've seen since I opened my account (May 2017). From what I recall, at the time it was 0.8% with the new customer promotion of 2.4% for the first few months.

Fortunately I don't keep any money in my Tangerine savings account. For me it's only purpose is for money-back reward deposits, which are e-transferred out to Motive (2.8% for now) as soon as received. Tangerine's earlier rate of 1.05% is pretty low, still.

The Scotia Momentum Plus Savings account offers a bit more (0.3%) in order to lure people in, in the hope they will treat their savings like a GIC ( i.e. incite them not to withdraw any money to get a little more interest). TD offers .01%, RBC 0.650%, BMO 0.2% base rate, CIBC 0.15%, National Bank 0.65%

The big banks are cheap.

Bud said
Do lower base regular interest rate on the account affect the overall promotional rate or not? For example, for someone gettin 2.75% if the regular rate drops from 1 to .50 will they get 2.25% now on the promo till the end of May?  

Even if the regular base rate reduces, the promo rate remains until the term of the promo ends. I have associates with 2.5% and 2.75% both of which continue at the full rate (2.5 or 2.75) although the base rate dropped.

Bud said
that means theyre still gettin 2.5 n 2.75 even though the base rate dropped?  

As of this moment, we still do. Just checked, web site still confirms I have "special offer at 2.75%" while their regular rate is .7%.

It was 2.75%, it changed I think today.