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[Simplii Financial] 3% promo on new deposits for 4 months from Simplii

  • Last Updated:
  • Nov 23rd, 2017 10:23 pm
Newbie
Oct 7, 2005
95 posts
158 upvotes
ChiliPalmer wrote:
Nov 6th, 2017 7:19 pm
This all depends on what interest rate you're getting at Scotia - and if you're willing to transfer funds back and forth periodically to take advantage of the rate promos. If you want no hassle, you're probably best opening an account with EQ Bank for their 2.3% standard rate.
Thanks for the reply! Scotiabank rate is 1.7% but only if no withdrawals made for the year. Drops to 0.8% if any withdrawal made. What would be the best way to transfer funds from my Scotiabank savings account to one of the online only banks? Thanks!
Newbie
Jan 28, 2008
31 posts
14 upvotes
Kitchener
I seem to just be moving my savings between Tangerine and PCF/Simplii as they try to outdo each other!
Deal Addict
Sep 10, 2010
1621 posts
325 upvotes
Ottawa
ProfessorChaos wrote:
Nov 6th, 2017 7:07 pm
I think what they mean is you will lose your contribution room from 2018 (if you are already maxed out) until 2019.

If you have a total of $42,000 in TFSA contributions as of yesterday.

You move $10,000 into a TFSA from a chequing account so you're at the maximum allowed limited before a penalty is incurred. $52,000 in contributions. Regardless of whether your previous contributed investments have made or lost value.

On January 1, 2018 you will have another $5,500 of room. Total room now $57,500. The interest is paid in March so after you receive the payment of interest, you wish to withdraw the $10,000 + interest and put it to Scotia iTrade TFSA (for example.) You won't be able to put back the entire amount in the year 2018, until 2019. You'll only be able to deposit $5,500 of the withdrawn funds unless you do a direct TFSA to TFSA transfer initiated by the financial institution. This costs anywhere from $0 to $100 and takes a bunch of paperwork.
This is what i was getting at.
[OP]
Deal Addict
Aug 5, 2006
2150 posts
592 upvotes
Global Village
ProfessorChaos wrote:
Nov 6th, 2017 7:07 pm
I think what they mean is you will lose your contribution room from 2018 (if you are already maxed out) until 2019.

If you have a total of $42,000 in TFSA contributions as of yesterday.

You move $10,000 into a TFSA from a chequing account so you're at the maximum allowed limited before a penalty is incurred. $52,000 in contributions. Regardless of whether your previous contributed investments have made or lost value.

On January 1, 2018 you will have another $5,500 of room. Total room now $57,500. The interest is paid in March so after you receive the payment of interest, you wish to withdraw the $10,000 + interest and put it to Scotia iTrade TFSA (for example.) You won't be able to put back the entire amount in the year 2018, until 2019. You'll only be able to deposit $5,500 of the withdrawn funds unless you do a direct TFSA to TFSA transfer initiated by the financial institution. This costs anywhere from $0 to $100 and takes a bunch of paperwork.
There is no loss of TFSA contribution room though. 1st if you contribute in the 3% Simplii TFSA now and max your allowed contribution room you have the option of withdrawing at the end of Dec with no fees or penalties and then re-contributing your $ plus the $5,500 for 2018 in January to any TFSA you want then. And if you want to stay with Simplii for next year you can leave the funds in the TFSA to collect the 3% for Jan and Feb and then possibly invest in a TFSA GIC. Either way there is no loss of TFSA contribution room, at most you have to wait until Jan of 2019 before you can recontribute if you decide to withdraw from the Simplii TFSA at any time in 2018.
Last edited by scoper on Nov 6th, 2017 10:11 pm, edited 1 time in total.
[OP]
Deal Addict
Aug 5, 2006
2150 posts
592 upvotes
Global Village
leblanc wrote:
Nov 6th, 2017 7:44 pm
Thanks for the reply! Scotiabank rate is 1.7% but only if no withdrawals made for the year. Drops to 0.8% if any withdrawal made. What would be the best way to transfer funds from my Scotiabank savings account to one of the online only banks? Thanks!
Scotiabank has pretty abysmal rates most of the year so it is definitely worth looking at better options. When you open a Simplii account you provide them with a Scotiabank cheque which Simplii uses to link your new Simplii account with the Scotiabank chequing account. Any time you need to move $ to or from Scotia chequing you'll call Simplii and they will move the amount you need.
Jr. Member
May 3, 2008
145 posts
55 upvotes
Markham
scoper wrote:
Nov 6th, 2017 10:11 pm
There is no loss of TFSA contribution room though. 1st if you contribute in the 3% Simplii TFSA now and max your allowed contribution room you have the option of withdrawing at the end of Dec with no fees or penalties and then re-contributing your $ plus the $5,500 for 2018 in January to any TFSA you want then. And if you want to stay with Simplii for next year you can leave the funds in the TFSA to collect the 3% for Jan and Feb and then possibly invest in a TFSA GIC. Either way there is no loss of TFSA contribution room, at most you have to wait until Jan of 2019 before you can recontribute if you decide to withdraw from the Simplii TFSA at any time in 2018.
agree there are "no permanent loss in TFSA contribution room" as the limit accumulates every year regardless whether you contribute that year or not. There will be a temporary contribution room loss for the funds you withdraw during the year, and can not be redeposit until new year.
I am against deposit money into a TFSA just to take advantage of the higher teaser rate. If your sole purpose of a TFSA account is to earn interest income, then something like a EQ bank who pays 2.3% regular rates is a better place to open the account than Tang or Simplii.
[OP]
Deal Addict
Aug 5, 2006
2150 posts
592 upvotes
Global Village
wongmb wrote:
Nov 7th, 2017 10:08 am
agree there are "no permanent loss in TFSA contribution room" as the limit accumulates every year regardless whether you contribute that year or not. There will be a temporary contribution room loss for the funds you withdraw during the year, and can not be redeposit until new year.
I am against deposit money into a TFSA just to take advantage of the higher teaser rate. If your sole purpose of a TFSA account is to earn interest income, then something like a EQ bank who pays 2.3% regular rates is a better place to open the account than Tang or Simplii.
Exactly. If you withdraw say $30K from your RRSP (outside of HBP) that contribution room is lost, you can't contribute that $30K to the RSP again. If you withdraw $30K from TFSA you can just wait till Jan of next year and contribute that $30K right back to a TFSA. To call that TFSA contribution room lost is simply inaccurate.
Newbie
Oct 7, 2005
95 posts
158 upvotes
drdtyc wrote:
Nov 6th, 2017 7:40 pm
I like to manage a single saving account at any moment. I have online saving accounts with EQ Bank, Tangerine, Alterna Bank and now Simplii. I am linking all my online accounts via the self-directed money transfer service available in these accounts.

Presently, majority of my money is in EQ Bank earning 2.3% interet. Waiting for Simplii to send me the welcome pack and set up the self-directed transfer link. When done, I will move my money to Simplii to earn 3.0% interest. The other accounts are in standby mode with minimal sums in them. Come the expiry date of this 3.0% promotion in end of Feb 2018, I will see which of my accounts is giving the best interest rate and move my money there. Not much hassle really. Just set up Google diary alert to look for best rate around end of Feb.

If I have more than $100k, I would put them in the order of accounts with best interest rate, the second best etc, staying within $100k limit - eg. $99k - for each account. I am not that rich to worry about the $100k limit though.

The accounts I mentioned would issue tax slips in Feb of each year for my tax filing. I either receive paper copies of the slips or download them from my online accounts. Very easy. There is no hassle to keep track of how much tax I own CRA.
Thanks a lot! Very helpful information!
Deal Addict
User avatar
Oct 13, 2002
4244 posts
387 upvotes
Toronto
scoper wrote:
Nov 7th, 2017 10:31 am
To call that TFSA contribution room lost is simply inaccurate.
Agreed. Good stuff.
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Member
Jan 2, 2017
211 posts
121 upvotes
I signed up through the website for a chequing and savings account. I didn't get an email confirmation and I sent them an email to ask about the status of my application but I haven't heard anything back from them yet. How long did it take everyone else to get their accounts open?
Member
User avatar
Jun 23, 2017
243 posts
61 upvotes
Toronto, ON
Messerschmitt wrote:
Nov 4th, 2017 12:21 pm
Someone asked before but not sure what page it was on. PC cheques are still good with simplii right since no numbers have been changed?
Yes. But just to have them I ordered some more free cheques on Nov.1 from Simplii and I'm glad to report that they arrived in the mail today!
The transit, institution and account # are identical to the ones I have from PCF.
Member
Feb 6, 2007
486 posts
92 upvotes
patroniton wrote:
Nov 7th, 2017 4:00 pm
I signed up through the website for a chequing and savings account. I didn't get an email confirmation and I sent them an email to ask about the status of my application but I haven't heard anything back from them yet. How long did it take everyone else to get their accounts open?
I also didn't get any confirmation, and I signed up on Nov. 1. So I decided to call them, and they told me my package was sent in the mail today.
Member
Apr 9, 2010
315 posts
113 upvotes
Toronto
shopper_holic wrote:
Nov 7th, 2017 6:16 pm
I also didn't get any confirmation, and I signed up on Nov. 1. So I decided to call them, and they told me my package was sent in the mail today.
So this process is going to take awhile. lol I signed up as well on Nov 1 at 7 am since I'm an early riser and I saw the 3% promo then.

I got the welcome package today (Nov 7) and I have to mail them the signature page back. I'm thinking it's going to take 2 days or so to mail and then another few days to process and verify my identity. Then after to link an account I have to mail void cheques or letters from my banks and wait for them to be added. I can't mail them void cheques to link my account along with my signature page.

Basically it'll be mid to late November until I can link my Tangerine account. Good thing this promo is for 4 months!
Deal Fanatic
Mar 22, 2004
9050 posts
588 upvotes
Mississauga
patroniton wrote:
Nov 7th, 2017 4:00 pm
I signed up through the website for a chequing and savings account. I didn't get an email confirmation and I sent them an email to ask about the status of my application but I haven't heard anything back from them yet. How long did it take everyone else to get their accounts open?
I'm in the same boat, no word or anything yet. If its going to be this long a delay and more of a hassle, I might just park my money at EQ.

Edit: I meant EQ not Simplii
Last edited by radeonboy on Nov 9th, 2017 6:51 pm, edited 1 time in total.

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