Personal Finance

hopping around bank promos

  • Last Updated:
  • Dec 6th, 2018 5:49 pm
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titaniumtux wrote:
Dec 2nd, 2018 4:00 pm
WB is Welcome Bonus. Most of the acronyms I use are in the sticky in credit card sub-forum.
You used HP the other day, which through me for a loop...I checked your sticky, but found nothing. My only thought was steak sauce.

I finally figured it out - based on the context - that you meant "hard pull"
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Sauerkraut wrote:
Dec 2nd, 2018 6:30 pm
You used HP the other day, which through me for a loop...I checked your sticky, but found nothing. My only thought was steak sauce.

I finally figured it out - based on the context - that you meant "hard pull"
Added, thank you.
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daivey wrote:
Dec 1st, 2018 9:38 pm
have you guys heard of the term penny wise, pound foolish?

yeah, I'm sorry, chasing promos for <$10,000 is not worth your time.... As for "do the math" have you? Most of the promos run for 2 to 4 months at the most. Can you do math? 1% promo rate on base rate...... that's annualized.. Over 3 months that's how much??? on $10,000??? It's basically $25 extra....WOW you are going to get rich doing that guys.

and to the point of opportunity cost.. EXACTLY... so now bank XyZAbc has your info now too... Great!! what about the time to open an account? Maybe call in? Time to read the terms and conditions?

Sure, if you have like $500,000 an extra 1% is great for 3 months. But even $100,000 an extra promo rate of 1% for 3 months is again ONLY $250... WOW OMG life changing.... WAIT WAIT did you guys forget something ? ? I think you did.... it's called taxes.....So if you're an average person making $60,000 a year, and you get another $250 in interest for the year, you're only pocketing $$180? WOW Sweet deal!!

Money is money, sure I agree, I want a free $250 too... but it's not free. I have to go open another account. I need to read the promo details. I need to meet with another advisor, OR if I open it online, depending on the bank, I have to go to a branch and verify my identity. Now they have my identity and my info.. Sure, not a big deal..

no such thing as a free lunch guys.
Yes, when it's only for 3 months you might have to do the "work" 4 times a year (gasp). I've never heard of anyone needing to meet with an advisor simply to benefit from a higher savings rate. If undue effort is necessary, one can look elsewhere or just do nothing until a better opportunity arises. Seems like you're still stuck in an "all or nothing" mindset. No one is going to "get rich" by paying $500 less for some appliance that they buy once in 10 years, either, but that doesn't mean finding that deal was a waste.

No free lunch: The idea behind opportunity cost is that it always exists - absolutely everything you do is at the cost of every other alternative, including doing nothing. So you try to make sure your choices have more value than any alternatives. Now, it's possible that the dollar value for the time it takes to use a promo is never more valuable than any alternative that time could be spent on. Maybe whatever you do at any given time (whether it's eating a sandwich, watching TV, or deprecating strangers on a forum for spending their time differently than you do) has more value to you. That's fine, but this is subjective value. When you say it's "a waste of everyone's time", you're trying to apply your subjective values onto everyone else. Doesn't work.
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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.
*Great feedback.

I am going exactly your route and like EQ Bank for it's *unlimited pull and push of money which makes a great middle man. They do however limit funds to $200,000 per account (or $700,000 if you have 5 of their GICs at $100000 which is great 3.33% for 90 days now) and more than that they will ask you to move the rep said.

@Scoper:
1- Do you have a list made for you for all the available current high interest savings accounts or know one posted online that is current?
2- Do you worry about any of these non-big-5 credit unions going down or do you plan to not keep all your eggs in one nest? (your can theoraticaly rely on FICO and put like $865000 at any credit union but it's a scary though - isn't it?
* $865000 comes from $250,000 for each spouse for a total of $500,000 and $250,000 for a joint account, and $57500 *2 for a TFSA.
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snowhite445 wrote:
Dec 5th, 2018 1:31 pm
*Great feedback.

I am going exactly your route and like EQ Bank for it's *unlimited pull and push of money which makes a great middle man. They do however limit funds to $200,000 per account (or $700,000 if you have 5 of their GICs at $100000 which is great 3.33% for 90 days now) and more than that they will ask you to move the rep said.

@Scoper:
1- Do you have a list made for you for all the available current high interest savings accounts or know one posted online that is current?
2- Do you worry about any of these non-big-5 credit unions going down or do you plan to not keep all your eggs in one nest? (your can theoraticaly rely on FICO and put like $865000 at any credit union but it's a scary though - isn't it?
* $865000 comes from $250,000 for each spouse for a total of $500,000 and $250,000 for a joint account, and $57500 *2 for a TFSA.
There are some savings account lists available here and online but they don't always capture their best promotional rates. I check out the RFD hot deals financial section ( link below) and each bank's site when it's time to choose where my $ goes next.

https://forums.redflagdeals.com/hot-deals-f9/?c=7

As for worrying about any of them you should keep in mind that the 3 banks, Tangerine, Simplii, EQ offer deposit insurance from CDIC for deposits up to $100,000 each. Meridian offers credit union deposit insurance from DICO of up to $250,000 (although next year when Meridian becomes a national bank they will be under CDIC also so DI might drop to $100K).
I am not worried about any of them right now but if I had to rank them from safest to least safe I would go

1. Tangerine (owned by Scotiabank)
2. Simplii (owned by CIBC)
3. Meridian
4. EQ Bank (owned by Equitable Bank)
Last edited by scoper on Dec 5th, 2018 2:28 pm, edited 1 time in total.
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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.
Wouldn't you want to open up a bank account with a FI (or credit union) so you have access to a teller in case of actual banking needs? Or does Simplii Financial allow you to do your banking services at any CIBC branch?
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Alivenate wrote:
Dec 5th, 2018 2:06 pm
Wouldn't you want to open up a bank account with a FI (or credit union) so you have access to a teller in case of actual banking needs? Or does Simplii Financial allow you to do your banking services at any CIBC branch?
Meridian has branches you can use when needed.
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scoper wrote:
Dec 5th, 2018 2:27 pm
Meridian has branches you can use when needed.
None in Vancouver area unfortunately... I'm with Coast Capital now, maybe I can use that instead if I were to ever start with that method/procedure
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Alivenate wrote:
Dec 5th, 2018 2:35 pm
None in Vancouver area unfortunately... I'm with Coast Capital now, maybe I can use that instead if I were to ever start with that method/procedure
This thread is not about tellers really. People here want to save and have accounts at other banks for those reasons. These users are talking about their so called "extra money / don't know what to do with it in short term" in this thread.
And money is moved using EFT between banks because it's never needed on emergency basis (or almost never).
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Nov 9, 2017
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scoper wrote:
Dec 5th, 2018 1:58 pm
There are some savings account lists available here and online but they don't always capture their best promotional rates. I check out the RFD hot deals financial section ( link below) and each bank's site when it's time to choose where my $ goes next.

https://forums.redflagdeals.com/hot-deals-f9/?c=7

As for worrying about any of them you should keep in mind that the 3 banks, Tangerine, Simplii, EQ offer deposit insurance from CDIC for deposits up to $100,000 each. Meridian offers credit union deposit insurance from DICO of up to $250,000 (although next year when Meridian becomes a national bank they will be under CDIC also so DI might drop to $100K).
I am not worried about any of them right now but if I had to rank them from safest to least safe I would go

1. Tangerine (owned by Scotiabank)
2. Simplii (owned by CIBC)
3. Meridian
4. EQ Bank (owned by Equitable Bank)
Thanks.

Do you know of any great rates for USD? RBC just started a 3.0% for a 1 year locked GIC but I like cashable monthly. Everyone else seems to be very very low.
I think RBC is betting for USD for this long term position meaning USD will go higher?!
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snowhite445 wrote:
Dec 5th, 2018 3:03 pm
Thanks.

Do you know of any great rates for USD? RBC just started a 3.0% for a 1 year locked GIC but I like cashable monthly. Everyone else seems to be very very low.
I think RBC is betting for USD for this long term position meaning USD will go higher?!
Take a look at Tangerine, I think they have pretty good US rates.

https://www.tangerine.ca/en/products/sa ... index.html
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