Personal Finance

Is a RUN on Tangerine Bank & EQ Bank taking place, due to Simplii - 3 % rate ?

  • Last Updated:
  • Nov 9th, 2017 12:59 pm
Banned
Oct 31, 2017
49 posts
12 upvotes

Is a RUN on Tangerine Bank & EQ Bank taking place, due to Simplii - 3 % rate ?

Or are people too lazy and don't care and happy with crappy rates with Tangerine.

Lot of status quo and people are just happy to let things be.

I bet besides the few RFD'ers who are not even a tiny fraction of Tangerine's 2 million customers, the general public doesn't care about transferring money out of Tangerine.
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31 replies
Deal Addict
Feb 11, 2009
1026 posts
294 upvotes
I find it highly odd that EQ Bank has had an IT glitch for over 12 hours without even an explanation or ETA on the same day that Simplii offers 3%

EQ Bank customers aren't going to EQ for the convenience. It's actually a bit of a pain to open an account and they are going because they are smart and want to park their money somewhere there is high interest.
Sr. Member
User avatar
Oct 19, 2016
650 posts
208 upvotes
Toronto
Most people are not going to transfer all their $$$ for Simplii's few months promotion... EQ is 2+% permannent.. no games..unlike Simpliii...

Now tangerine..maybe, they might transfer as the website has gone down the tubes and they play the same game as Simplii... Tangerine has to stepup their game now.. otherwise they will lose customer $$$ in short term.
Member
Apr 17, 2014
361 posts
217 upvotes
Calgary
Well, after EQ made it into the evening news with their hour long (or day long) homepage failure, more customers will jump ship.
Deal Addict
Jan 29, 2017
3872 posts
2505 upvotes
EQ had to increase interest rate from 2 to 2.3% to retain worried customers after Home Capital issues earlier this year. Intentional or unintentional I also believing Simplii offer is somehow related.
Deal Addict
Nov 6, 2015
1354 posts
1022 upvotes
Guelph, ON
I already had my available cash in PC/Simplii for the 2.5% rate, so I can't get the 3% bonus because it's not "new" money. So I'll move it out but not to Tangerine unless they have a bonus soon.
Sr. Member
User avatar
Jul 13, 2009
926 posts
186 upvotes
EQ vs Simplii for the 4 months.
0.00233 x $$$ = $

It ends up being $2.3 if I move 1000. $23 if I move 10000. Etc.

Meh. I don't have enough for it to make it worthwhile. And don't want to deal with calculating taxes.
Thanks.
Newbie
User avatar
Aug 4, 2013
88 posts
121 upvotes
ChappyHappy wrote: EQ vs Simplii for the 4 months.
0.00233 x $$$ = $

It ends up being $2.3 if I move 1000. $23 if I move 10000. Etc.

Meh. I don't have enough for it to make it worthwhile. And don't want to deal with calculating taxes.
I think your math is wrong. $10K @ 2.3% for the year is $230.00
Deal Addict
Mar 8, 2013
2950 posts
1611 upvotes
harbottle wrote: I think your math is wrong. $10K @ 2.3% for the year is $230.00
The difference between 3% and 2.3%, FOR 4 MONTHS, is indeed $23. You can't use a year in your calculations, because the Simplii promotion is only until the end of February.
Deal Addict
Jan 2, 2015
1633 posts
639 upvotes
Toronto, ON
JoeBlack23 wrote: I already had my available cash in PC/Simplii for the 2.5% rate, so I can't get the 3% bonus because it's not "new" money. So I'll move it out but not to Tangerine unless they have a bonus soon.
Same, except Tangerine is offering me a bonus. A slightly lower one, but I'll make do.
Deal Addict
Feb 26, 2008
1821 posts
1285 upvotes
akaManny wrote: The difference between 3% and 2.3%, FOR 4 MONTHS, is indeed $23. You can't use a year in your calculations, because the Simplii promotion is only until the end of February.
You are correct. You cannot simply plug in the temporary rate for a whole year. However, people have a decision to make about whether to take the time to open 3 or 4 savings accounts and link them up which enables them to play musical chairs with their savings. Most people are too ignorant/lazy to bother or they have too little money to make it worthwhile. But, if you have $50k+, it's probably worth the effort even if it's impossible to calculate, ex ante, what your incremental return will be.

I haven't done the math for 2017 yet, but I'd estimate that my average rate using the musical chairs technique will be about 3% for the year. The game has required that I transfer money 4 or 5 times, which probably cost me 15 minutes of time. For me, it's definitely been worth it, but you do need a reasonably healthy savings account.
Deal Addict
Mar 8, 2013
2950 posts
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kneevase wrote: You are correct. You cannot simply plug in the temporary rate for a whole year. However, people have a decision to make about whether to take the time to open 3 or 4 savings accounts and link them up which enables them to play musical chairs with their savings. Most people are too ignorant/lazy to bother or they have too little money to make it worthwhile. But, if you have $50k+, it's probably worth the effort even if it's impossible to calculate, ex ante, what your incremental return will be.

I haven't done the math for 2017 yet, but I'd estimate that my average rate using the musical chairs technique will be about 3% for the year. The game has required that I transfer money 4 or 5 times, which probably cost me 15 minutes of time. For me, it's definitely been worth it, but you do need a reasonably healthy savings account.
Yes, if you are going to play musical chairs, you probably need at least 3 accounts - Tangerine, another like Simplii, plus one constant - EQ for me.
Jr. Member
Jun 24, 2015
111 posts
15 upvotes
Toronto, ON
kneevase wrote: You are correct. You cannot simply plug in the temporary rate for a whole year. However, people have a decision to make about whether to take the time to open 3 or 4 savings accounts and link them up which enables them to play musical chairs with their savings. Most people are too ignorant/lazy to bother or they have too little money to make it worthwhile. But, if you have $50k+, it's probably worth the effort even if it's impossible to calculate, ex ante, what your incremental return will be.

I haven't done the math for 2017 yet, but I'd estimate that my average rate using the musical chairs technique will be about 3% for the year. The game has required that I transfer money 4 or 5 times, which probably cost me 15 minutes of time. For me, it's definitely been worth it, but you do need a reasonably healthy savings account.
+1. I do the same as you do. Spend couple minutes in front of the computer every several months and earn more interest. Why not?
Deal Expert
User avatar
Aug 18, 2005
21223 posts
5939 upvotes
Burlington-Hamilton
To be honest I think it is NOT a run on Tangerine and EQ. Call it the 'Toronto effect,' where everyone thinks that what's happening in their own commuity is happening everywhere else.
Sure a lot of people in the RFD community are pulling money out of other banks, however, this is probably just a very small part of the overall picture.
To borrow a term someone else on here used, RFD members churning their savings accounts for better rates is like one guy taking a pee in the ocean.

If the banks don't like people churning their own accounts, they have nobody but themselves to blame. Tangerine only rewards people who churn their accounts by offering their 90 day promos only to 'new' money, rather than rewarding long-time customers first. Chickens come home to roost, eventually.
- casual gastronomist -
Deal Fanatic
Oct 26, 2008
7022 posts
2907 upvotes
Victoria, BC
akaManny wrote: The difference between 3% and 2.3%, FOR 4 MONTHS, is indeed $23. You can't use a year in your calculations, because the Simplii promotion is only until the end of February.
Not to split hairs, but it isn't quite a $23 interest difference in this example because EQ credits your interest monthly whereas Simplii holds it to the end of the promo period. Compound vs. simple interest.
Deal Fanatic
Nov 24, 2013
6479 posts
3344 upvotes
Kingston, ON
Interest threads on RFD fascinate me for the amount of effort spent chasing peanuts in interest, especially if taxable (and, IMO, if you use up TFSA room on something other than equities, you’re wasting the potential benefit).

On topic, I think the statistics show most Canadians have minimal savings, much less the interest or savvy to play musical chairs for the best interest. I’m going to agree with the “drop in the ocean” answer. This isn’t an “HCG is going bankrupt!” (even though CDIC insured) bank run.
Deal Addict
Feb 26, 2008
1821 posts
1285 upvotes
Mike15 wrote: Interest threads on RFD fascinate me for the amount of effort spent chasing peanuts in interest, especially if taxable (and, IMO, if you use up TFSA room on something other than equities, you’re wasting the potential benefit).

On topic, I think the statistics show most Canadians have minimal savings, much less the interest or savvy to play musical chairs for the best interest. I’m going to agree with the “drop in the ocean” answer. This isn’t an “HCG is going bankrupt!” (even though CDIC insured) bank run.

To be fair, there are several people who participate in the interest rate threads who have $100k+, and at least one guy who has indicated that he has $500k+. For those folks, it's a worthwhile investment of their time to move their money around to bump their average annual rate from 2.3 to 3.0ish percent. It's hundreds (or thousands!) of bucks for 15 or 20 minutes of work during a year.

But, I'd agree that the typical guy with $5k or $10k of savings doesn't get much benefit.
Deal Addict
Mar 8, 2013
2950 posts
1611 upvotes
macnut wrote: Not to split hairs, but it isn't quite a $23 interest difference in this example because EQ credits your interest monthly whereas Simplii holds it to the end of the promo period. Compound vs. simple interest.
I understand very well the difference between interest compounded monthly vs. paid after 120 days. I also have done the calculations and the difference is minimal. Perhaps you could post exactly the difference as you see it for the example we are discussing.
Deal Addict
Nov 25, 2014
1739 posts
960 upvotes
Newton Brook, ON
macnut wrote: Not to split hairs, but it isn't quite a $23 interest difference in this example because EQ credits your interest monthly whereas Simplii holds it to the end of the promo period. Compound vs. simple interest.
It's still $23. :) About 23.1, versus 23.3 if EQ was simple interest.
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