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PC Financial 2.6% promo

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  • Aug 1st, 2013 4:28 pm
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Nov 19, 2004
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And it is based on new deposits only from the July 16 date. So for those who move money from ING over at the end of the month to get the last few weeks of PC at 2.6% will only earn the 2% on the new deposits after that. So maybe not worth moving your money over until after.
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don242 wrote:
Jun 26th, 2013 7:57 am
And it is based on new deposits only from the July 16 date. So for those who move money from ING over at the end of the month to get the last few weeks of PC at 2.6% will only earn the 2% on the new deposits after that. So maybe not worth moving your money over until after.
You only get interest on the average balance at PC. The way they calculate it is shady. So if you had 0$ in your PC accr for 3 months and then $25k for 2 weeks.... You will not get 2.6% on the full 25k.
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coleworld wrote:
Jun 26th, 2013 1:37 pm
You only get interest on the average balance at PC. The way they calculate it is shady. So if you had 0$ in your PC accr for 3 months and then $25k for 2 weeks.... You will not get 2.6% on the full 25k.
That is the way interest is calculated everywhere. You only get interest on the time it is in the account. So yes, you will get 2.6% interest on the 25K for those two weeks.
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Oct 23, 2006
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Maybe someone else can chime in but in pretty sure They do not calculate interest the same way as everyone else
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PCF does the average of the 90 days, ING does on monthly basis calc daily so your interest gets compounded on the reg 1.35% rate making it just about even, plus it offers it in reg. accounts clearly the better choice in that scenario.
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coleworld wrote:
Jun 26th, 2013 2:26 pm
Maybe someone else can chime in but in pretty sure They do not calculate interest the same way as everyone else
The only difference with PC is that they are calculating daily and adding at the end of the promotion as an average balance. Whereas, ING promo, they are calculating daily and adding each month so that little bit added each month would also earn interest from that point going forward .
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Jun 27, 2005
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don242 wrote:
Jun 26th, 2013 2:32 pm
The only difference with PC is that they are calculating daily and adding at the end of the promotion as an average balance. Whereas, ING promo, they are calculating daily and adding each month so that little bit added each month would also earn interest from that point going forward .
I had called in because I did not get my bonus interest as expected in my account for one of the promotional periods and can confirm that PC does calculate their interest differently.
coleworld wrote:
Jun 26th, 2013 1:37 pm
You only get interest on the average balance at PC. The way they calculate it is shady. So if you had 0$ in your PC accr for 3 months and then $25k for 2 weeks.... You will not get 2.6% on the full 25k.
In this situation, you do not get ANY interest if the average over the 3 month 2 week period is lower than your starting balance, even if the 25k is greater than your balance.
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2heaven wrote:
Jun 26th, 2013 4:13 pm
I had called in because I did not get my bonus interest as expected in my account for one of the promotional periods and can confirm that PC does calculate their interest differently.



In this situation, you do not get ANY interest if the average over the 3 month 2 week period is lower than your starting balance, even if the 25k is greater than your balance.
In that case, then yes, I agree. I didn't really pay attention to the PC promotion that much.

However, 25000 for two weeks over two weeks when you started with a zero balance, comes to the same thing if they average the balance or not.
Assume 104 days. 25000 in for 14 days, the rest is zero.
Average balance = $3365 for those 104 days. Multiply by 2.6%, divide by 265d for your daily rate and multiply that by 104 days = apprx $25
Or just take 25000 for 14 days at 2.6% still comes to the same approx $25.
Either way to calculate is the same, so you are getting the full 2.6% for those 14 days.

The difference would be if your average balance doesn't go over your starting balance as you mentioned.
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don242 wrote:
Jun 26th, 2013 4:26 pm
In that case, then yes, I agree. I didn't really pay attention to the PC promotion that much.

However, 25000 for two weeks over two weeks when you started with a zero balance, comes to the same thing if they average the balance or not.
Assume 104 days. 25000 in for 14 days, the rest is zero.
Average balance = $3365 for those 104 days. Multiply by 2.6%, divide by 265d for your daily rate and multiply that by 104 days = apprx $25
Or just take 25000 for 14 days at 2.6% still comes to the same approx $25.
Either way to calculate is the same, so you are getting the full 2.6% for those 14 days.

The difference would be if your average balance doesn't go over your starting balance as you mentioned.
You said you agree that you get nothing, then say the opposite. Too confusing man
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coleworld wrote:
Jun 26th, 2013 4:30 pm
You said you agree that you get nothing, then say the opposite. Too confusing man
No, I said that I agreed if you were talking about an average balance that is less than your starting balance. But the scenario I was responding to was a starting balance of 0 followed by a two week period of $25K, in which case the interest is the same.
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don242 wrote:
Jun 26th, 2013 4:26 pm
However, 25000 for two weeks over two weeks when you started with a zero balance, comes to the same thing if they average the balance or not.
Assume 104 days. 25000 in for 14 days, the rest is zero.
Average balance = $3365 for those 104 days. Multiply by 2.6%, divide by 265d for your daily rate and multiply that [bold]by 104 days [/bold] = apprx $25
Or just take 25000 for 14 days at 2.6% still comes to the same approx $25.
Don't you mean 14 days here? They pay you interest in the average over the promotion, but only from when it was deposited....

So if you had $0 in your PC account when this 2.6% promo started and deposited $25k on July 1, you will only get $3.35 interest

That equals about a .35% annual interest rate on the 25k. Careful.
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coleworld wrote:
Jun 26th, 2013 4:38 pm
Don't you mean 14 days here? They pay you interest in the average over the promotion, but only from when it was deposited....

So if you had $0 in your PC account when this 2.6% promo started and deposited $25k on July 1, you will only get $3.35 interest

That equals about a .35% annual interest rate on the 25k. Careful.
No, you said interest was paid on the average balance. Average balance is ~$3365 over those 104 days. $3365 x 2.6% for 104 days equals ~$25.
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don242 wrote:
Jun 26th, 2013 4:48 pm
No, you said interest was paid on the average balance. Average balance is ~$3365 over those 104 days. $3365 x 2.6% for 104 days equals ~$25.
From the 2.6% offer terms:

3. For Existing Eligible Accounts, Promotional Interest will be paid on the portion of aggregate average daily closing balances across all of an account holder's Eligible Accounts during the Offer Period which exceeds the account holder’s aggregate Eligible Accounts' closing balance on April 14, 2013 (the "Additional Balance"). Any Additional Balance will earn a special interest rate of 2.60% annually during the Offer Period. If any Existing Eligible Account is overdrawn as at April 14, 2013, the April 14, 2013 closing balance will be deemed to be $0.00. For New Eligible Accounts, the daily closing balances in that account will be deemed to be $0.00 starting on April 15, 2013 up to the date that a deposit is made in the account. For greater certainty, Promotional Interest will not be paid on funds that are transferred from an existing Eligible Account to another existing or new Eligible Account.
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The wording is too confusing. They've lost my deposit after this promotion is over because of this "average daily balance" crap
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coleworld wrote:
Jun 26th, 2013 5:01 pm
From the 2.6% offer terms:

3. For Existing Eligible Accounts, Promotional Interest will be paid on the portion of aggregate average daily closing balances across all of an account holder's Eligible Accounts during the Offer Period which exceeds the account holder’s aggregate Eligible Accounts' closing balance on April 14, 2013 (the "Additional Balance"). Any Additional Balance will earn a special interest rate of 2.60% annually during the Offer Period. If any Existing Eligible Account is overdrawn as at April 14, 2013, the April 14, 2013 closing balance will be deemed to be $0.00. For New Eligible Accounts, the daily closing balances in that account will be deemed to be $0.00 starting on April 15, 2013 up to the date that a deposit is made in the account. For greater certainty, Promotional Interest will not be paid on funds that are transferred from an existing Eligible Account to another existing or new Eligible Account.
So do you think it is an average of the daily closing balance over the full period, or not? And if you do, then what do you think the average balance is in your scenario?

I haven't really paid much attention to this promo or this thread, but I am guessing that most of this has already been discussed in earlier posts.
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