Personal Finance

Tangerine Interest Rate Lottery thread

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  • Mar 28th, 2024 3:03 pm
Sr. Member
Jan 10, 2006
878 posts
882 upvotes
Got 3.22% again. Moved all money from savings to checking on July 1st. This has become a quarterly ritual now. If I didn't get an offer from Tangerine it would have gone to Meridian.
Deal Fanatic
Jun 29, 2007
6041 posts
2751 upvotes
Vancouver
Speedy1 wrote: Same here. 1 of 6 accounts in BC just received offer for 3.22% from July 5 to Sept 30. Account that got offer transferred ~$65k out a month or two ago after initial 6 month promo rate ended.
The $65k was moved out on May 24.

Interesting another account just got the exact same 3.22% offer as well. This account had only ~$160 transferred out ~May 24 as well after initial 6 month promo rate was over.
Member
Jul 13, 2015
256 posts
117 upvotes
Ontario
Just to confirm, "new money" counts even if you have moved your balance out of your savings account and put it in a chequing account only to move it back to the savings account today?

Got 3.1% this time.
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User avatar
Oct 24, 2004
8568 posts
4207 upvotes
Toronto (Central)
Conquistador wrote: HELOC
Considering that you don't qualify for that much through your TFSA, isn't it a bad idea to do this seeing as you'd be taxed on it?
IMO it makes it a moot point
Banned
Jul 1, 2017
80 posts
32 upvotes
DMac90 wrote: Just to confirm, "new money" counts even if you have moved your balance out of your savings account and put it in a chequing account only to move it back to the savings account today?

Got 3.1% this time.
If you did prior to July 4 yes, otherwise No.

Not sure if they take July 4 night snap shot or July 4 morning snap shot.
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Feb 19, 2010
6237 posts
2992 upvotes
newt_101 wrote: Considering that you don't qualify for that much through your TFSA, isn't it a bad idea to do this seeing as you'd be taxed on it?
IMO it makes it a moot point
First of all, it wasn't me that talked about doing this. It was mkl38s. I was only answering melcon's question about where one could borrow 2.7% money.

Half a million bucks at around 1/2% interest (net) for three months is over $600. (Interest on the HELOC is deductible BTW.)

Yes, one will pay income tax on that $600 but I'm not aware of a 100% marginal tax rate so one comes out several hundred dollars ahead for spending a few minutes transferring money in and out. How is that a moot point? :eek:
Deal Addict
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Dec 23, 2005
2672 posts
161 upvotes
Calgary
If our money is in my wife's single savings account and We move it to our joint saving account while I'm the primary holder, Does it consider as a new money?
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Deal Guru
User avatar
Aug 8, 2012
10198 posts
4028 upvotes
BC
mkl38s wrote: try to determine if it's worth the hassle
1. LOC - prime (2.7%)
2. TING - 3.1%
the difference is : 0.4% free money for 90 days. Interest paid on LOC is deduectable against interest earnings from TING right? If it's 100% tax deducted then a full $500K would yield close to $500
Prime might be going up 0.25% later this month :)

But ya, if it stays the same you would net $500 of taxable interest income (after factoring in cancelling out the 2.7% carrying charges deduction).

So your profit is $250+ depending on your marginal tax rate.

If your LOC balance is at $0 now and you deposit this cash into a new savings account you make at Tangerine called "Investment savings" then you have a good paper trail.

If you have other balance in LOC that is for non-deductible use then you have to calculate the different portions of interest for each use of funds. If you just deposit the funds into your main Tangerine savings account that has other transactions going on you will also run into 'current use of funds' issues.
POLL: How frequent is your RRSP-matching?
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Aug 8, 2012
10198 posts
4028 upvotes
BC
melcon wrote: Where can u take a loan from at the rate of 2.7%??? And with the amount of 500K
Secured home equity LOC at prime.

You can borrow for cheaper from a broker like IB:
https://www.interactivebrokers.com/en/index.php?f=1595

1.64% blended rate today on $500k CAD (2% on first $140k, 1.5% on rest).
POLL: How frequent is your RRSP-matching?
Plastiq: Pay any bill with credit card for 0-2.5% fee (help meet min spending and keep old cards active!)
Rewards program transfer times (e.g. SPG->Aeroplan, Marriott->SPG, Amex MR->SPG...)
Deal Guru
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Aug 8, 2012
10198 posts
4028 upvotes
BC
Jimboski wrote: Would I qualify for the interest rate if I move my money out of my Tangerine account and deposit it back in?
Only if you have a time machine so you could do the moving out part before today like most people already did in anticipation of a new promo :)

Next time move it out early. Before Oct 5th it should be gone. Sept 30th if you are paranoid they will change the dates.
POLL: How frequent is your RRSP-matching?
Plastiq: Pay any bill with credit card for 0-2.5% fee (help meet min spending and keep old cards active!)
Rewards program transfer times (e.g. SPG->Aeroplan, Marriott->SPG, Amex MR->SPG...)
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Aug 8, 2012
10198 posts
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BC
newt_101 wrote: Considering that you don't qualify for that much through your TFSA, isn't it a bad idea to do this seeing as you'd be taxed on it?
IMO it makes it a moot point
Interest paid to earn income is tax deductible.

You pay tax on 3.2% and deduct the 2.7% cost.
It works out to effectively earning 0.5% taxable interest on money that isn't yours and would otherwise be sitting as unused available credit.
POLL: How frequent is your RRSP-matching?
Plastiq: Pay any bill with credit card for 0-2.5% fee (help meet min spending and keep old cards active!)
Rewards program transfer times (e.g. SPG->Aeroplan, Marriott->SPG, Amex MR->SPG...)
Deal Fanatic
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Oct 24, 2004
8568 posts
4207 upvotes
Toronto (Central)
ace604 wrote: Interest paid to earn income is tax deductible.

You pay tax on 3.2% and deduct the 2.7% cost.
It works out to effectively earning 0.5% taxable interest on money that isn't yours and would otherwise be sitting as unused available credit.
Conquistador wrote: First of all, it wasn't me that talked about doing this. It was mkl38s. I was only answering melcon's question about where one could borrow 2.7% money.

Half a million bucks at around 1/2% interest (net) for three months is over $600. (Interest on the HELOC is deductible BTW.)

Yes, one will pay income tax on that $600 but I'm not aware of a 100% marginal tax rate so one comes out several hundred dollars ahead for spending a few minutes transferring money in and out. How is that a moot point? :eek:
Nice!
I was told by a financial adviser that because I had maxed out my TFSA I would have to pay taxes on the income I made through a HISA if I was to put my HELOC into it - time to transfer over a few hundred thousand!

Thanked!
Banned
Jul 1, 2017
80 posts
32 upvotes
tasamy wrote: If our money is in my wife's single savings account and We move it to our joint saving account while I'm the primary holder, Does it consider as a new money?
Did the Joint account where you are the Primary holder get the offer ? If so yes.

Your wife's Single account has nothing to do with it. Whatever you do, don't make it joint to transfer the money, otherwise it won't be counted as new money.

Transfer it to an external account from her single account then back to your Joint account on which you are the primary and which got the offer.

You both have separate Client ID's right ?

So when she logs in with her client ID she will see BOTH the accounts, her Single account and the Joint account.

But if you log in with your Client ID , you will only see the Joint account. You won't see her Single account. You won't have access to it.
Member
Apr 29, 2013
434 posts
98 upvotes
Montreal
Never get anything and when I contact Tangerine the best they can do is always 1.6% If I don't care about interest this 3-month period, is there anything I can do to increase my chances of getting an actual offer next period? Should I call in like I usually do and just refuse the 1.6% they will likely offer me, or should I just not contact them at all?
Member
Jul 2, 2015
262 posts
146 upvotes
OTTAWA,ON
goubagouba wrote: Never get anything and when I contact Tangerine the best they can do is always 1.6% If I don't care about interest this 3-month period, is there anything I can do to increase my chances of getting an actual offer next period? Should I call in like I usually do and just refuse the 1.6% they will likely offer me, or should I just not contact them at all?
I notice that you are in Montreal.
JMO, but I don't think that Tangerine's offers are completely random, they can't be that simple minded.

I could be wrong but I believe that they do have set of algorithms that the computer sifts through each promo period.

Eg, If you're from Quebec, you don't have access to the 2.3% that EQ offers everyone without having to grovel so why offer
a superior rate (the 3.22% one) to a higher percentage of Quebec residents when you really don't have to ?

Sure, some Quebec posters will say , yes, I did get a fair offer, but only Tangerine knows what percentage of the Quebecers did get the 3.22%

IOW, why hand out what you don't have to ? :rolleyes:
Newbie
Mar 26, 2008
89 posts
33 upvotes
Mississauga
Just logged in to my Tangerine account was offered 2.97% on new deposits, time to transfer back from EQ.
Newbie
May 25, 2016
29 posts
5 upvotes
Last promo, I received 3%. Moved money out of savings into chequing and waited for new offer. No new offer :( Phoned in to move funds to an external account, was offered 2.5% until October 2.
Deal Addict
User avatar
Oct 12, 2005
1475 posts
181 upvotes
Mississauga
Got 3.22% till Sep.30. As my move to Eq was posted today, so kinda missed it myself but other accounts in family got same offer, so will have to move there.

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