Tangerine Promo Offer | Page 2 | Tangerine Bank | Discussion forum

zgic said

@cgouimet: So between me and my spouse I need only 3 accounts as the max CDIC coverage could be $300k (me+spouse+joint) and I do NOT need 4, correct?

I would need 4 for overlapping promos, as the promo only goes to the primary in a joint account? Is that so?

I just want to confirm this with you as I would like to have a similar setup with TNG.

Also how do you do the transfers between accounts between you and spouse? Is it through interac e-Transfer?

Thank you!!  

Yes 100 each plus 100 joint

zgic said

@cgouimet: So between me and my spouse I need only 3 accounts as the max CDIC coverage could be $300k (me+spouse+joint) and I do NOT need 4, correct?

I would need 4 for overlapping promos, as the promo only goes to the primary in a joint account? Is that so?

I just want to confirm this with you as I would like to have a similar setup with TNG.

Also how do you do the transfers between accounts between you and spouse? Is it through interac e-Transfer?

Thank you!!  

YOu have it correct on both issues; CDIC coverage and TNG promos.

The point I was making is that this can be expanded on both counts; CDIC by adding different combination of joint accounts with a third person (or more), and of course TNG by increasing chance of one or more getting selected in their promo lottery.

The math looks like this:
You alone: up to $100K coverage using non-registered products
You and one other, e.g. spouse: up to $300K - same products, one in each name, and one joint
You and two others, e.g. spouse and a child: up to $500K - same products, one in each name, and one joint between 1st and 2nd, 1st and 3rd, 2nd and 3rd, e.g., husband & wife, husband and child, wife and child.
you and three others, e.g. spouse and 2 children: up to $900K - same products, one in each name, and one joint between 1st and 2nd, 1st and 3rd, 1st and 4th, 2nd and 3rd, 2nd and 4th, e.g., husband & wife, husband and 1st son, husband and 2nd son, wife and 1st son, wife and 2nd son, 1st and 2nd sons.
5th person gets exponentially more coverage.

And of course, each additional person increase chance in TNG lottery.

No, there are no age restrictions for CDIC coverage.

There are age restrictions for owning certain types of investment accounts, registered funds, etc, like TFSA, brokerage accounts (need to be formal or informal trusts, etc).

Same thing here: I had 5.50% till the end of September. October 1st, I started exiting my money, took 3 days to do so and the following day, I got the offer: 5.35% till the end of December. I hate going thru this circus.

Lodown said

Instead of making investors play these crazy games to get around CDIC limits, CDIC should make the insured amount unlimited or at least greatly increase the per account insured value - this would at least avoid bank runs. For comparison the USA has $250k USD per account deposit insurance.  

Right On! Long overdue...

Without deposit insurance, the smaller institutions would have no chance in a market so dominated by the giants. Is that what Canada wants? No competition was not so great in the past!

I think a few hundred thousand is reasonable for most Canadians. CDIC was not created to protect the richest of the rich, as they have the cash and the means to protect themselves, learn of danger early, and stash cash offshore.

RetirEd said
Without deposit insurance, the smaller institutions would have no chance in a market so dominated by the giants. Is that what Canada wants? No competition was not so great in the past!

I think a few hundred thousand is reasonable for most Canadians. CDIC was not created to protect the richest of the rich, as they have the cash and the means to protect themselves, learn of danger early, and stash cash offshore.  

True that CDIC was not created as you say, "to protect the richest of the rich".
In my interactions with some very rich people, they would never put any funds in banks such as WealthOne, Oaken, Laurentian etc. no matter what the CDIC limits were, so it would be a non-issue for them if CDIC raised the limits. Not sure that even people with only modest assets would put more funds in some of these smaller banks either. I would not.

Bill said
What I don't get is who would have RRSPs or RRIFs with the smaller banks, with only a paltry $100K insured? Or are there that many people who ignore the CDIC limit in their registered accounts?

CDIC limit can be ignored if one has less than $100,000 in an RRSP or RRIF.

MoneySense: How much does the average Canadian have in savings? cites the following 2019 Statistics Canada averages:

• Under age 35: $27,425 in non-pension financial assets and $9,905 in RRSPs
• Ages 35 to 44: $23,743 in non-pension financial assets and $15,993 in RRSPs
• Ages 45 to 54: $39,831 in non-pension financial assets and $41,998 in RRSPs

canadian.100 said

True that CDIC was not created as you say, "to protect the richest of the rich".
In my interactions with some very rich people, they would never put any funds in banks such as WealthOne, Oaken, Laurentian etc. no matter what the CDIC limits were, so it would be a non-issue for them if CDIC raised the limits. Not sure that even people with only modest assets would put more funds in some of these smaller banks either. I would not.

CDIC does not make up for the less-solid banks, trust companies, or mortgage corporations.

CDIC coverage will ensure that one will eventually recover the insured deposits. But, it doesn't ensure that one will have access to the funds on time. Having access to the deposited funds on time can be more important than potentially more interest.

If one's new house is closing in a month, maybe it is more important for the $300,000 down payment be available on closing day than to earn that bit of extra interest by having the $300,000 deposited at a smaller institution, even if one could arrange for the $300,000 to be fully CDIC insured via joint accounts.