“Promotional Interest” is earned on Eligible Deposits (excluding Promotional Interest) | Tangerine Bank | Discussion forum

This has been noted previously. Here is a snippet from one of the previous discussions, courtesy Norman1. And I would think that it should be quite easy for the interest calculator to be programmed to exclude any amounts designated as "Promo Interest".

Norman1 said
The current 5.75% offer excludes "Promotional Interest" from the definition of "Eligible Deposits". Definition of "Promotional Interest" includes regular interest:

5. “Promotional Interest” is the interest earned on Eligible Deposits during the Promotion Period. “Eligible Deposits” for any day during the Promotion 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 December 4, 2023, to a maximum of $1,000,000.00 per Applicable Account Type (in the currency of the Applicable Account). ….

Promotional Interest is calculated at a “Promotional Interest Rate” of 5.75%, which is the sum of the applicable posted rate of interest listed on the Bank’s website on any given day (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”).…

  

I would assume there is nothing you can do about this problem..
Promo Interest earned is not segregated in such a way that you can access it on its own. If you withdraw an amount equal to the promo interest, Tang will likely still pay only the base rate on an equivalent amount that is still in your account, so you are no further ahead.
The only possible workaround that I can see is if you somehow persuaded Tang to deposit the interest directly to your chequing account, but I imagine they would refuse. They like it this way!
This makes it similar to the Simplii offers that only pay sometime after the end of the promo.
I don't remember the previous thread; perhaps i missed it.

Hubert pays compound interest on the one year quaorterly GICs, effectively increasing the posted "average" rate.

at the end of the day the incremental monetary loss to the client is relatively inconsequential.

the reputational loss to Tang is far more significant.

Dean said
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What Loonie just said ⬆

After further thought, I'm pretty sure Loonie has; Hit-The-Nail-On-The-Head.

It is what it is ... with no effective Workaround.

C'est la vie !

Dean

  

I agree. When this first came up in discussion, I figured the promotional interest kinda became part of the starting balance ...

usephrase said

I have 5% promotion at Simplii and 5.1% at Tangerine, my fund stays at Simplii.

Promotional offer term of Simplii is straight forward, no trick. Starting balance is always the amount on the end date of the previous offer or the date prior to the current offer.

I prefer Simplii because it is a division of CIBC, one of SIX big banks.  

And Tangerine is owned by Scotia Bank ...

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Yup ⬆

Scotiabank's stock (BNS) had been in the doldrums for quite some time. But I (and many others) held on, partially because we were Paid To (BNS Dividend
= ~6%).

And finally with BNS's stock recent turnaround (⬆ ~20%, and still climbing), we're all Smilin' Now.

Dean

kesa said
at the end of the day the incremental monetary loss to the client is relatively inconsequential.

the reputational loss to Tang is far more significant.  

I don't think Tangerine has any more reputation to lose. 🙂