Personal Finance

Simplii (ex PCF) ... 3% new deposits promo: Nov 1, 2017 - February 28, 2018

  • Last Updated:
  • Mar 31st, 2018 3:44 pm
Newbie
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Feb 16, 2014
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what a merry-go-round... round and round the money goes over the last 2 months...

1. all funds at Tangerine at 2.3% promo deal; $ .01 in PC HISA then...
2. got 2.5% PC offer... transfer all funds to Tangerine with $ .01 in savings account then....
3. got 2.75% email offer from Tangerine at expiration of promo deal... all funds transferred back to Tangerine; $ .01 remaining in PC HISA, now..
4. 3% offer from Simplii so back goes all the the funds from Tangerine Nov 1 today; $.01 balance in Tangerine.

and the icing on the cake is a couple days of extra interest where the amounts showed in both accounts before settling Face With Stuck-out Tongue And Tightly-closed Eyes free market competition is GOOD!
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Jan 21, 2014
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dtm252535 wrote:
Nov 1st, 2017 8:35 pm
Probably a stupid question, but I accepted an etransfer into my chequing account this morning, if I transfer that to savings, will it still count as new deposit into savings and qualify for the promo interest rate?
you should be fine as today is Nov 1 and the Simplii looks at Oct 31st balance
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Dec 13, 2010
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Ok, opened a simplii high interest savings account.
I figure I'll hold off on opening a chequing account. Eventually they will have a promotion for that :)

They did just raise the bar on free chequing accounts. FREE E-TRANSFERS. Wow
Banned
Oct 31, 2017
49 posts
12 upvotes
ofertasgo wrote:
Nov 1st, 2017 8:15 pm
Whats the best way to transfer 6 figures? Calling Tangerine?
Yes Calling in. Or by Web chat.

Last time I transferred out $ 150,000 twice through 2 Tangerine savings accounts, via web chat. Even web chat was constantly busy, had to log in 4-5 times before I got some agent free enough to chat with me.

After the wait, I got a rude & condescending CSR who was encouraging me to close my account and even left a NOTE on my account that I am declining their crappy retention offer of 2 % ..LOL.

They DO leave notes on your account, if you DECLINE their retention offer. I found it out, the next time I called them. The second CSR told me , " Well, I can see you were previously offered a 2 % interest rate offer by my colleague on 29 th September. Well that's the best I can offer you too " How the hell did he know about what his colleague offered, unless the first CSR left a NOTE on my account that 2 % was offered to me & I declined it.

So now I don't bother asking for or declining any retention offers. I just MOVE the money out. If they ask why ? I tell them just move the money out, I don't give them ANY reason. If they come back with a crappy 2 % retention offer, I neither accept it or decline it, I just say move the DAMN money out !

I don't want these guys leaving NOTES on my account again, which might or might not affect ANY future lottery rate promos they have.

If they didn't have the crappy $ 25 K self-transfer limit, I wouldn't even bother calling in. They force you to call in for larger amount transfers, so they can try to retain you with some crappy retention offer & then they leave NOTES on your account, when you DECLINE that crap.
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Feb 16, 2014
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amitpandit wrote:
Nov 1st, 2017 11:23 pm

If they didn't have the crappy $ 25 K self-transfer limit, I wouldn't even bother calling in.
I just did the self-transfer out to Simplii at the daily $ 50,000 limit. The long, long, long wait to get CSR to do a transfer > $50K is torture, so I do transfer outs in daily tranches.
Transfer in can be done lump sum up to $ 1M.
Banned
Oct 31, 2017
49 posts
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b33zlebub wrote:
Nov 1st, 2017 11:40 pm
I just did the self-transfer out to Simplii at the daily $ 50,000 limit. The long, long, long wait to get CSR to do a transfer > $50K is torture, so I do transfer outs in daily tranches.
Transfer in can be done lump sum up to $ 1M.
I though they had reduced the $ 50 K daily limit to $ 25 K recently. Did you PULL - $ 50 K from Simplii or PUSH $ 50 K from Tangerine.

About a month back when I tried to self transfer $ 45 K from Tangerine it wouldn't let me do it. I could only do $ 25 K. I called in and they said the $ 50 K daily limit has been reduced to $ 25 K now.

So anything more than $ 25 K , you have to call in or web chat and upto $ 1 million the CSR can do in one day, self transfer will be only $ 25 K daily.

I guess everyday they have new rules and new transfer out limits.
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Feb 16, 2014
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^^ I pushed it from Tangerine. When I try to transfer more than $50K, I get an error. I usually see it hitting my PC (in the past) in 1 business day.
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Dec 14, 2007
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amitpandit wrote:
Nov 1st, 2017 3:42 pm
Yes you can. But only upto $ 500 K will get you 3 % , anything above that will only get you 1 %.

Will be transferring $ 320,000 out of Tangerine soon .
I'm assuming that you must have a large portfolio and that this is just the cash portion... or you need to keep a large float super liquid. 3% is good for a cash interest rate... but a diversified portfolio easily doubles that. There funds that even pump out a higher dividend than 3%!
I'd love to write history... in advance.
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Feb 11, 2009
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b33zlebub wrote:
Nov 1st, 2017 9:02 pm
what a merry-go-round... round and round the money goes over the last 2 months...

1. all funds at Tangerine at 2.3% promo deal; $ .01 in PC HISA then...
2. got 2.5% PC offer... transfer all funds to Tangerine with $ .01 in savings account then....
3. got 2.75% email offer from Tangerine at expiration of promo deal... all funds transferred back to Tangerine; $ .01 remaining in PC HISA, now..
4. 3% offer from Simplii so back goes all the the funds from Tangerine Nov 1 today; $.01 balance in Tangerine.

and the icing on the cake is a couple days of extra interest where the amounts showed in both accounts before settling Face With Stuck-out Tongue And Tightly-closed Eyes free market competition is GOOD!
I am a TINGer/EQer/Simplii guy too.

I kept a list of all my account numbers next to my will in case I pass away :-D

My parents will probably be confused why only one of the accounts has money in it...
Banned
Oct 31, 2017
49 posts
12 upvotes
Never been with PCF or CIBC before.

1. If I open a brand new JOINT savings account, will I be eligible for the 3 % promo ? Or does it have to be a SINGLE account ?

Somewhere in the T & C , I read only primary holders are eligible for this 3 % offer, does that mean JOINT accounts are excluded ?

2. Does it still take 1 day to transfer money from Simplii Savings to Simplii Checking ?

3. Can you transfer directly from Simplii Savings to Tangerine Savings and vice versa ? Or I have to open a Simplii Chequing account for that ?

4. How do I link Simplii Savings account as external account to Tangerine ? Is it with 2 tiny micro-deposits, which I have to confirm like with some other banks ?
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Jan 7, 2002
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atomiton wrote:
Nov 2nd, 2017 2:00 am
I'm assuming that you must have a large portfolio and that this is just the cash portion... or you need to keep a large float super liquid. 3% is good for a cash interest rate... but a diversified portfolio easily doubles that. There funds that even pump out a higher dividend than 3%!
1. People sometimes have large amounts of cash as proceeds from a house sale. If they intend to use that money to buy another property then HISAs are the only safe place to save that money.

2. "Easily"???

While it may be possible to achieve higher returns by investing in equities there are no guarantees. Stock markets in Canada and the US are trading at record highs. A 10% or higher correction in the near future is quite possible. Such a correction on several $100k could be painful, e.g. it could be the equivalent of the price of a new (luxury) car. Not everyone has the stomach to risk such a loss.

3. "a higher dividend than 3%"???

Dividends aren't guaranteed. A company can cut the dividend rate or even the dividend altogether when times get tough. Usually they have to do this because their business is in trouble and/or the economy is in trouble. Either of those plus a dividend cut usually result in a dramatic decline in the price of the company's stock. So you suffer a loss not only on the dividends but also on the principal.

While Canadian banks haven't cut dividends in decades, it could still happen. Indeed reversion-to-the-mean suggests the longer the upswing the more likely a downswing. Besides it's not a good idea to invest money solely in the financial industry.

Also there have been periods in market history when aggregate dividend yields have been lower than HISAs rates.

4. It sounds easy to play the market when it's been on a tear for several years. It's not so easy to stay in the market after it's pulled back. See 2.

5. HISAs, at least the first $100k, are CDIC insured. Stock markets offer no such protection. If you need the money just after a market correction you're forced to sell at a loss. With HISAs you can always get at least your principal back.

Summary: For many people return of capital is far more important than return on capital.
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Oct 31, 2017
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After you open the Simplii Savings account online . What and how do you activate and fund the account for the initial amount ? Can it be done electronically, or do I mail a SELF cheque to them ?

Do they send you some paper work in mail ? Which you have to sign & send back to them ? What about photo ID's, are you required to send that too ?
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Hmm. Perfect. Need to switch my money later.
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bylo wrote:
Nov 2nd, 2017 7:36 am
1. People sometimes have large amounts of cash as proceeds from a house sale. If they intend to use that money to buy another property then HISAs are the only safe place to save that money.
Yep, I get that. Which is why I mentioned liquidity.
2. "Easily"???

While it may be possible to achieve higher returns by investing in equities there are no guarantees. Stock markets in Canada and the US are trading at record highs. A 10% or higher correction in the near future is quite possible. Such a correction on several $100k could be painful, e.g. it could be the equivalent of the price of a new (luxury) car. Not everyone has the stomach to risk such a loss.
This is true that many can't stomach a short-term loss... but even the 2008 GFC only took 18–24 months to completely recover. I do get that swings can play on people's fears though, which is why many invest in GICs that essentially just preserve capital.
3. "a higher dividend than 3%"???

Dividends aren't guaranteed. A company can cut the dividend rate or even the dividend altogether when times get tough. Usually they have to do this because their business is in trouble and/or the economy is in trouble. Either of those plus a dividend cut usually result in a dramatic decline in the price of the company's stock. So you suffer a loss not only on the dividends but also on the principal.

While Canadian banks haven't cut dividends in decades, it could still happen. Indeed reversion-to-the-mean suggests the longer the upswing the more likely a downswing. Besides it's not a good idea to invest money solely in the financial industry.
Yes, that's true that dividends CAN be cut and in fact they DO get cut. Chasing dividends is a fool's errand. I'm not only thinking of the financial industry.
Also there have been periods in market history when aggregate dividend yields have been lower than HISAs rates.

4. It sounds easy to play the market when it's been on a tear for several years. It's not so easy to stay in the market after it's pulled back. See 2.

5. HISAs, at least the first $100k, are CDIC insured. Stock markets offer no such protection. If you need the money just after a market correction you're forced to sell at a loss. With HISAs you can always get at least your principal back.

Summary: For many people return of capital is far more important than return on capital.
Yes, and it also depends on your time frame. I get all that. Me personally, I have the bulk of my assets in a diversified portfolio, but use HISAs for the cash portion. Earning 2.75% or 3% is GREAT on the fixed part of my portfolio but I'm also cognizant that it's not REALLY 3% as taxes reduce that considerably. Dividends and capital gains are taxed much more favorably.

For me, having 300,000 in a HISA is good if:
  1. You need a holding account ( liquidity )
  2. You are close to retirement and preservation of capital is most important
  3. You have a large equity portfolio and this is the fixed income portion
  4. You'd otherwise be the kind of person who buys GICs.
  5. You consider your 6 month emergency fund to require 300k
I know everyone's situation is different, but are there people here putting the BULK of their growth portfolio in a HISA?
I'd love to write history... in advance.
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atomiton wrote:
Nov 2nd, 2017 11:46 am
...I know everyone's situation is different, but are there people here putting the BULK of their growth portfolio in a HISA?
I don't disagree with the general points you've made above, especially since they echo what I just said upthread ;)

However I take issue about how many people "here putting the BULK of their growth portfolio in a HISA." The "growth" qualifier strikes me as a kind of non sequitur. If the bulk of their assets are in an HISA then, by definition, it's not a growth portfolio ;) I doubt many people are confused on that distinction.

Some more points:

1. Many (most?) people who think they can handle investment risks like market volatility do so having never actually experienced it. Then the first time there's a correction, let alone a crash like 2008, or the 2000 Internet bubble burst, or the 1987 crash, etc. usually panic and sell--at the worst possible time. Suddenly they realize that their previously-held swagger was just hubris. IMO there's no other way to determine one's risk tolerance but to live through a major crash. Some of those who do and who learn from it, vow to steer clear of equities in the future. Whether that's rational or not is immaterial. It's their money. It's also their good night's sleep.

2. There are many people who don't need to invest in equities at all. Between pensions, CPP/OAS and their portfolio of GICs, they have more than enough to live on, including provision for emergencies, without having to take any equity risk. Consider a retired couple with $2M in GICs. Even at 2% interest there's $40k income plus perhaps $30k in CPP/OAS, not to mention private pension plans. Why should they want to invest in equities when they don't need to?

3. These days even 5-year GICs pay around 2%. (Yes some pay more, but others, especially the big-5 banks pay even less.) With interest rates set to rise (at least according to the experts) I suspect many people are hesitant to lock in for 5 years at such low rates, especially when they can wait it out for 3 months AND earn 50% higher rates, e.g. 2.75% (TING) or 3% (Simplii.) In this situation they're holding large amounts in HISAs, not out of ignorance or inertia, but rather deliberately to earn higher-than-GIC rates as well as in the expectation of rising rates. Moreover with all the HISA players competing with promo rates on HISAs it's likely this situation will continue well into 2018. My contention is that in this climate holding HISAs at promo rates at TING and Simplii makes more sense than buying 5-year GICs at 1.8% from their owners BNS and CIBC.
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