Personal Finance

hopping around bank promos

  • Last Updated:
  • Dec 6th, 2018 5:49 pm
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Penalty Box
Dec 27, 2013
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dekvitaly wrote:
Dec 1st, 2018 7:11 pm
@titaniumtux which was exactly my point when OC is 0. You don't get any pay after work or "free time".
Perhaps I need someone to show me their own example of their OC.
A Penny saved is a penny earned.... right?

typical middle class mindset. expand your mind bro.
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Dec 16, 2017
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@daivey I never said penny saved = penny earned ;)
Basic accounting class, nothing's critical by saving every penny for anything. You can choose to do WB or discard it from your mind.

'tis not your job or your business to get up here and tell me to expand my mind. I have some other ability to crack your head

For what you claimed over banking welcome bonus, unfortunately you're mistaken. Deposit welcome bonus is a non-reporting income and won't appear in T5 or T5A.
interest is taxable yes, we all agree on that. We talk here welcome bonus which isn't necessary promotional interest.

You go somewhere else and be the ward plz. Leave the OP alone and our "middle class" alone. Or, you can also shook your money in your own throat and enjoy it. We "poor people" don't need that money from you
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dekvitaly wrote:
Dec 1st, 2018 7:11 pm
@titaniumtux which was exactly my point when OC is 0. You don't get any pay after work or "free time".
Perhaps I need someone to show me their own example of their OC.
:facepalm:

All depends. If that $200-300 WB spared you from high interest debt, or you're able to throw that cash into another loot on minimal effort for another WB, then great. If you're taking time off work to visit banks, don't do it. If you're doing it outside of your working hours, then assess whether putting in a few hours to loot a few hundred is worth it. If you really are bored, or it's your hobby, then go for it.
daivey wrote:
Dec 1st, 2018 9:42 pm
A Penny saved is a penny earned.... right?

typical middle class mindset. expand your mind bro.
The middle class fit right into this sweet spot. They may have a float of cash to swing around for some promo money. They may enjoy putting in a few hours to gain a few hundred. Middle class don't earn $100/hour at their day job, not even factoring in income tax.

So to say that those who don't reach you in wealth should "open their minds", understand that they may justify the hassle of playing these games. Give anyone earning under $75k/yr (single) or $150k/yr (household) a few extra grand per year for minimal effort, and they'll praise RFD for it.

That said, I pick and choose the promo's that interest me. I assess based on the effort involved. If I hit $150k+/yr for the household, I probably won't care so much about these promo's.
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Penalty Box
Dec 27, 2013
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Toronto
dekvitaly wrote:
Dec 1st, 2018 10:01 pm
@daivey I never said penny saved = penny earned ;)
Basic accounting class, nothing's critical by saving every penny for anything. You can choose to do WB or discard it from your mind.

'tis not your job or your business to get up here and tell me to expand my mind. I have some other ability to crack your head

For what you claimed over banking welcome bonus, unfortunately you're mistaken. Deposit welcome bonus is a non-reporting income and won't appear in T5 or T5A.
interest is taxable yes, we all agree on that. We talk here welcome bonus which isn't necessary promotional interest.

You go somewhere else and be the ward plz. Leave the OP alone and our "middle class" alone. Or, you can also shook your money in your own throat and enjoy it. We "poor people" don't need that money from you
OP posted in a forum he got an opinion.
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Dec 16, 2017
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Raincouver
@daivey an opinion isn't the same as you telling poorer people how miserable they are to chase after WB and promos.

You can simply tell OP what you said instead of belittling everyone else here on this forum.
Penalty Box
Dec 27, 2013
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dekvitaly wrote:
Dec 1st, 2018 10:35 pm
@daivey an opinion isn't the same as you telling poorer people how miserable they are to chase after WB and promos.

You can simply tell OP what you said instead of belittling everyone else here on this forum.
my original post had some solid advice. I told him he's wasting his time chasing promos for someone that's just getting started. And it's good advice. I still stand by my statement, chasing promo rates on $5,000 worth of savings is a waste of everyone's time. You can feel belittled if you like, it's a fact. You're wasting your time chasing insignificant amount of money. Sorry that it hurts your feelings.

Im talking high interest savings account.
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daivey wrote:
Dec 1st, 2018 10:46 pm
my original post had some solid advice. I told him he's wasting his time chasing promos for someone that's just getting started. And it's good advice. I still stand by my statement, chasing promo rates on $5,000 worth of savings is a waste of everyone's time. You can feel belittled if you like, it's a fact. You're wasting your time chasing insignificant amount of money. Sorry that it hurts your feelings.

Im talking high interest savings account.
Well, this.

HISA WB's are generally poor, where the bigger gain is the bonus interest. FWIW, it's probably a good idea to setup 3+ HISA's for musical chairs on a sunny day when you don't have anything better to do. This can allow one to come close or perhaps exceed earnings of GIC's. It's smart to keep $1-5k liquid in HISA (not even in TFSA). It's also worth setting up for the learning curve. These are the greater gains to be had. As discussed in this thread, I did recommend "de-bundle and save" (chq account with one FI, HISA with another, TFSA with another). These arrangements can help on a rainy day when the promo hits, but you don't have time to open up accounts,

Depending on one's spend, one may prefer to keep up to $5k in the chq account. If the cashflow warrants it, then HISA's become less relevant.

Worth the time to set it up? Opportunity cost-wise, the direct payout may allow you to afford a few more beers, but it's not an outlet to wealth.

The chequing account WB's are generally more lucrative, especially on the most uncompetitive/unappealing ones to keep. If one can open up HISA's and link 'em all up, the chq accounts may be little incremental effort above the HISA's. It's not unusual for RFDers to earn even upwards of a few grand between bank accounts and CC's per year by doing this. But again, that's assuming you're not doing this at the expense of anything more lucrative, important, or even far more fun.

Like @daivey said, biggest WB's are on investment brokerages, and those have much higher minimum balances, various fee structures, etc. $5k in savings is probably not enough float before investing via a broker.
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The OP doesn't seem to be fixated on high interest savings account.
scho28 wrote:
Nov 29th, 2018 9:22 pm
Hey guys,

I'm a young professional looking to get into investing,
I want to start with something low profile and low risk and then get into something higher risk/reward when I am more comfortable/knowledgeable.
Financial institutions offer various welcome bonuses depending on the type of account and institution. Different types of accounts serve different purposes. I think everybody is likely to agree on the fact that welcome bonuses on any of them are not a strategy for "getting rich". That doesn't mean that for many, it isn't still worthwhile. Just using myself as an example, the sum of welcome bonuses I collected in 2018 from checking account and credit card promos was >$2k. I'm a lowly hourly peasant that works for a telco. I get to work at home though, I can peruse promos while on the clock.

While no one is going to get rich chasing welcome bonuses, obviously, there isn't much harm in the low effort, little/no risk return. CIBC has $300 welcome bonus, the minimum balance for the monthly fee waiver was only $3000. Scotiabank has $300 welcome bonus with $4000 minimum balance fee waiver. TD has $300 welcome bonus with $5000 minimum balance fee waiver. I've seen some very good welcome bonuses from BMO and National Bank too, but their minimum balance fee waivers are the highest at $6000. Some have "keep account minimum 12 months" in the fine print, some do not.

Considering that it's prudent to keep 3-6 months of expenses as an emergency fund anyway, churning it through those promos is a great way to have that emergency fund generate a solid extremely low risk return instead of it doing nothing, while still remaining completely liquid. When there isn't a good promo, I ladder short term GICs if there are any good options, such as the 3-month 3.33% that EQ has right now.

If you're already a high net worth individual, maybe you can't be bothered, that certainly would be fair enough. But if you're not, and you are so inclined to bother with the very minimal effort / work involved, not really seeing the downside.
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zcypher wrote:
Dec 2nd, 2018 12:22 am
The OP doesn't seem to be fixated on high interest savings account.



Financial institutions offer various welcome bonuses depending on the type of account and institution. Different types of accounts serve different purposes. I think everybody is likely to agree on the fact that welcome bonuses on any of them are not a strategy for "getting rich". That doesn't mean that for many, it isn't still worthwhile. Just using myself as an example, the sum of welcome bonuses I collected in 2018 from checking account and credit card promos was >$2k. I'm a lowly hourly peasant that works for a telco. I get to work at home though, I can peruse promos while on the clock.

While no one is going to get rich chasing welcome bonuses, obviously, there isn't much harm in the low effort, little/no risk return. CIBC has $300 welcome bonus, the minimum balance for the monthly fee waiver was only $3000. Scotiabank has $300 welcome bonus with $4000 minimum balance fee waiver. TD has $300 welcome bonus with $5000 minimum balance fee waiver. I've seen some very good welcome bonuses from BMO and National Bank too, but their minimum balance fee waivers are the highest at $6000. Some have "keep account minimum 12 months" in the fine print, some do not.

Considering that it's prudent to keep 3-6 months of expenses as an emergency fund anyway, churning it through those promos is a great way to have that emergency fund generate a solid extremely low risk return instead of it doing nothing, while still remaining completely liquid. When there isn't a good promo, I ladder short term GICs if there are any good options, such as the 3-month 3.33% that EQ has right now.

If you're already a high net worth individual, maybe you can't be bothered, that certainly would be fair enough. But if you're not, and you are so inclined to bother with the very minimal effort / work involved, not really seeing the downside.
+1 this.
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scho28 wrote:
Nov 29th, 2018 9:22 pm
Hey guys,

I'm a young professional looking to get into investing,
I want to start with something low profile and low risk and then get into something higher risk/reward when I am more comfortable/knowledgeable.

I have seen some people mention here that they hop around different bank promos and i'm just wondering what the actual process is like,

I imagine you would have to set up accounts with all the different banks and you just move your money over to the one with the highest promotional rate..
but, is this only for GICs? How does this work with banks who are offering promotional rates for their savings account?
I would think once you set up new savings account and run the course with the promotional rates, future promos on these savings account would not apply to you as you are not a new customer.

If someone can clarify the strategy and offer some insight, that would be great!

Thank you
If you are risk averse the blueprint to the savings account game would be this:

- Start with EQ Bank, they offer an above average everyday savings rate and their online site allows you to link up to 10 external bank accounts online (so they can become your central hub in moving $). You can push and pull $ from/to external savings accounts using the EQ website.

- Move on to Tangerine and their savings account, they have a good introductory savings account rate for 6 months, like EQ they also allow you to link to external accounts online but only 3

- Meridian would be next, they have a money mover service available which allows you to link 1 external account but you must provide a void cheque so use EQ, Tangerine instead to push/pull Meridian $

-Finally go with Simplii savings and use EQ/ Tangerine to link with it.

Once the introductory rates for new customers are used for each move your $ to EQ, wait for savings deals and go with the highest bidder. Once you have done the initial work to link the 4 online moving funds from 1 bank to the others can be done online easily.
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scoper wrote:
Dec 2nd, 2018 1:23 pm
If you are risk averse the blueprint to the savings account game would be this:

- Start with EQ Bank, they offer an above average everyday savings rate and their online site allows you to link up to 10 external bank accounts online (so they can become your central hub in moving $). You can push and pull $ from/to external savings accounts using the EQ website.

- Move on to Tangerine and their savings account, they have a good introductory savings account rate for 6 months, like EQ they also allow you to link to external accounts online but only 3

- Meridian would be next, they have a money mover service available which allows you to link 1 external account but you must provide a void cheque so use EQ, Tangerine instead to push/pull Meridian $

-Finally go with Simplii savings and use EQ/ Tangerine to link with it.

Once the introductory rates for new customers are used for each move your $ to EQ, wait for savings deals and go with the highest bidder. Once you have done the initial work to link the 4 online moving funds from 1 bank to the others can be done online easily.
+1, this setup has been working perfectly for me for quite some time (except I am not a Meridian user.)

My only additional components would be Achieva Financial (I get a kick out of the $1 monthly bonus, sue me) and Motive Financial (offering 2.8% interest right now as a liquid back-up should Tangerine fail to offer a bonus rate.)
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titaniumtux wrote:
Dec 1st, 2018 11:00 pm
Well, this.

HISA WB's
What does WB stand for?
You seem to use a lot of short forms leaving the reader confused and missing the information in your valuable posts.
Last edited by profile on Dec 2nd, 2018 11:37 pm, edited 1 time in total.
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profile wrote:
Dec 2nd, 2018 3:34 pm
What does WB stand for?
You seem to use a lot of short forms leaving the reader confused and missing the information in you valuable posts.
WB is Welcome Bonus. Most of the acronyms I use are in the sticky in credit card sub-forum.

Thank you for the recognition btw.


@scoper link everything to everything! Although Tang and EQ are among the few to link via micro-deposits, setting up external links via PAD form / void cheque is not the hardest challenge. Do it once, and enjoy the convenience later.


@aweawea +1!!
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We are sitting on the proceeds of our house sale. Chasing rates makes sense.

We were with EQ but their promo rate expired and replaced with a GIC that locks us in 3 months when we need it just short of that time line. So EQ is out now.

Simplii had a new promo (we had 50% of our 400k in there with the old promo). Thing is simplified takes a snapshot of your opening balance so only funds over and above count for the new rate. So Simplii is out now too.

So I opened an account with RBC and moved the money there for 6mos of 3+% on our full 400k.

Moving for .25%? I think not. At the 3% of so we have had our money on savings accounts since June 1 we have made a tidy sum in interest, at least not losing to inflation.

But hey, if you dislike money enough to park cash in a lower than inflation interest rate account feel free. And perhaps you are frequenting the wrong forum ....
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riffr aff wrote:
Dec 2nd, 2018 5:39 pm
We are sitting on the proceeds of our house sale. Chasing rates makes sense.

We were with EQ but their promo rate expired and replaced with a GIC that locks us in 3 months when we need it just short of that time line. So EQ is out now.

Simplii had a new promo (we had 50% of our 400k in there with the old promo). Thing is simplified takes a snapshot of your opening balance so only funds over and above count for the new rate. So Simplii is out now too.

So I opened an account with RBC and moved the money there for 6mos of 3+% on our full 400k.

Moving for .25%? I think not. At the 3% of so we have had our money on savings accounts since June 1 we have made a tidy sum in interest, at least not losing to inflation.

But hey, if you dislike money enough to park cash in a lower than inflation interest rate account feel free. And perhaps you are frequenting the wrong forum ....
+1

When sitting on the $$ from a house sale, the HISA musical chairs car make a nice difference.

The trick is to really empty out your accounts so you don't lose out on the accelerated interest. Kind of annoying, but it's the name of the game.
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