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[Simplii Financial] 3% promo on new deposits for 4 months from Simplii (No QC)

  • Last Updated:
  • Dec 7th, 2017 12:30 pm
Newbie
Nov 24, 2017
49 posts
28 upvotes
g-money wrote:
Dec 5th, 2017 6:27 pm
Using average balance is mathematically identical to using daily balance accrual.

For example, the interest for a three-day period with daily closing balances b1, b2, and b3:

(b1 * 2%/365) + (b2 * 2%/365) + (b3 * 2%/365)
= (b1 + b2 + b3) * 2%/365
= (b1 + b2 + b3) * 1 * 2%/365
= (b1 + b2 + b3) * 3/3 * 2%/365
= (b1 + b2 + b3) / 3 * 3 * 2%/365
= (average of b1, b2, and b3) * 3 * 2%/365
= (average of b1, b2, and b3) * 2%/365 * 3

Both
1.(average of daily closing balances over offer period) above Oct. 31 closing balance and
2.portion of daily closing balance above Oct. 31 closing balance, if any,

methods will give the same promotional interest when none of the daily closing balances fall below the Oct. 31 balance.


I found the above in another blog to confirm my thoughts. The bonus is calculated OVER the 4 months so you get Paid the Interest OVER the 4 months.
Look, believe what you want. The explanation I provided in my previous post is quite clear and accurate. But you are free to believe otherwise. It is all written quite clearly in the fine prints, which btw, were not so easy to find in regards to the details of how the 2% bonus is calculated.

I challenge anyone to prove me wrong!
Jr. Member
Oct 24, 2007
161 posts
45 upvotes
Vancouver
Obviously it is not clear in the fine print, nor do you know it's accurate. Otherwise there would not be any discussion around this on RFD and other forums. Have you confirmed this with Simplii? If not, I don't think you should state that your thoughts are correct and that's how it will be calculated.
NumberThree wrote:
Dec 5th, 2017 6:34 pm
Look, believe what you want. The explanation I provided in my previous post is quite clear and accurate. But you are free to believe otherwise. It is all written quite clearly in the fine prints, which btw, were not so easy to find in regards to the details of how the 2% bonus is calculated.

I challenge anyone to prove me wrong!
Newbie
Nov 24, 2017
49 posts
28 upvotes
g-money wrote:
Dec 5th, 2017 6:42 pm
Obviously it is not clear in the fine print, nor do you know it's accurate. Otherwise there would not be any discussion around this on RFD and other forums. Have you confirmed this with Simplii? If not, I don't think you should state that your thoughts are correct and that's how it will be calculated.
Go to Simplii website and look around until you find how the 2% bonus is calculated (I think I spent quite a few minutes before I found it). I stand 100% behind what I wrote and as I have repeatedly said,

the 2% bonus is calculated on the AVERAGE DAILY CLOSING BALANCE OVER THE OFFER PERIOD (4 months). It is written black on white on SImplii's website. Like I said, I challenge ANYONE to prove me wrong.
Deal Addict
May 2, 2010
2343 posts
1611 upvotes
Markham
desi77 wrote:
Dec 1st, 2017 11:35 pm
What a crappy system! Kept getting errors while registering for online access. Had to call twice and the rep told that the telephone passcode I entered first time was not accepted correctly into their system. Had to call two times with rep on the line in order to register for online banking. Now I am in the online banking and I don't see any linked account. How do I deposit money into the account?
Same here. Called twice to get registered online.

Click Transfer on left pane of your online home screen. Click add account on the left pane again on the next screen. Set up the details of your accounts with other institutions. Need to send in hardcopy of void checks to complete the set up.
Member
Oct 8, 2006
294 posts
64 upvotes
Okanagan Valley
NumberThree wrote:
Dec 5th, 2017 2:59 pm
I don't know if this has been mentioned before and you'll have to forgive me for not reading the close to 600 posts...

but you will ONLY get 3% if you deposited ALL your money on November 1st and do not touch it for the whole 4 months.

The 1% of the 3% promotion is calculated on your daily balance. But the extra 2% is calculated on your AVERAGE daily closing balance for the whole period. IOW, each month that goes by from that 4-month period you lose 0.5% of that 2%. Every day that goes by you lose a little bit of that 3% on all new deposits done during the 4 months.

To give you some examples; say you deposit $100,000 on January 1st and your previous balance was zero. You will not get 3% on that $100,000 for 2 months. You will in fact get a total of 2%. 1% basic interest + 2% on an AVERAGE daily balance of $50,000 for the 4 months. Your AVERAGE daily balance for half the 4 months was zero. So in the end your average daily balance is just $50,000. So 2% on $50,000 is equivalent to 1% on $100,000. So in real life you will earn 2% on your $100,000.

Example number 2: Say you deposited $100,000 on November 1st and withdrew the $100,000 on December 1st. You will not get 3% on your $100,000 for a one month period. You will get the equivalent of 1.5% on your $100,000. That's 1% on your $100,000 for one month + one month at $100,000 and 3 months at zero give you an average daily balance of $25,000. So you get 2% on your average daily balance of $25,000 or 0.5% on your $100,000.

Btw, I'm discarding the fact that the 1% is compounded while the 2% is not when providing % as the impact is very small.
If you are anywhere near correct, there will be a horrendous number of pissed of people over the misleading advertisement of 3% and I wouldn't want to be in CIBC's shoes. I tend to lean towards g-money's calculation IMHO.
Newbie
Nov 24, 2017
49 posts
28 upvotes
happy camper wrote:
Dec 5th, 2017 7:06 pm
If you are anywhere near correct, there will be a horrendous number of pissed of people over the misleading advertisement of 3% and I wouldn't want to be in CIBC's shoes. I tend to lean towards g-money's calculation IMHO.
It's not a matter of what I think, it is a matter of the fine prints on Simplii website. It is written black on white. Why don't you verify it yourself? It is clearly written in plain english, the 2% is calculated on the AVERAGE daily closing balance for the offer period (4 months). It is that simple. No one can blame Simplii if you failed to properly inform yourself of the rules of the offer.
Last edited by NumberThree on Dec 5th, 2017 7:31 pm, edited 1 time in total.
Newbie
Nov 24, 2017
49 posts
28 upvotes
Ok, so I wasted a few more minutes on Simplii website to find their ***** fine prints, here it is below, go to their website and click on "Legal" and you can read it all for yourself.

The Promotional Interest is calculated on the portion of the Eligible Savings Account’s average daily closing balance during the Offer Period

So the AVERAGE daily closing balance is NOT the same thing as the daily closing balance. The word 'average' changes everything. And that average is calculated over the 4 months of the offer.
Jr. Member
Dec 22, 2006
114 posts
16 upvotes
Calgary
NumberThree wrote:
Dec 5th, 2017 7:31 pm
It's not a matter of what I think, it is a matter of the fine prints on Simplii website. It is written black on white. Why don't you verify it yourself? It is clearly written in plain english, the 2% is calculated on the AVERAGE daily closing balance for the offer period (4 months). It is that simple. No one can blame Simplii if you failed to properly inform yourself of the rules of the offer.
This is not the first time PCF or Simplii have that clause in their promotional interest, it states:

The Promotional Interest is calculated on the portion of the Eligible Registered Savings Account’s average daily closing balance during the Offer Period that exceeds the closing balance as at October 31, 2017

So base on your example, the calculation is :

Promotional interest: $25,000 (average closing during the Offer period) * 2% * 120/365 (Number of day during the Offer period) - $0 (balance as of October 31) = $164.38
Regular Interest : $100,000 * 1% * 30/365 - $0 = $82.19

Total Interest: $164.38 + $82.19 = $246.57

This is proven correct for past promotion.
Member
Dec 4, 2005
372 posts
140 upvotes
Mississauga
NumberThree wrote:
Dec 5th, 2017 7:45 pm
Ok, so I wasted a few more minutes on Simplii website to find their ***** fine prints, here it is below, go to their website and click on "Legal" and you can read it all for yourself.

The Promotional Interest is calculated on the portion of the Eligible Savings Account’s average daily closing balance during the Offer Period

So the AVERAGE daily closing balance is NOT the same thing as the daily closing balance. The word 'average' changes everything. And that average is calculated over the 4 months of the offer.
NumberThree, you've been trying very hard but the math is simple: in your first example: $100,000 at 2% for 2 months = $50,000 at 2% for 4 months (offer period). I just don't see what the problem is:
$100,000*0.02/12*2(months) = $333.33
$50,000*0.02/12*4(months)=$333.33

The only difference between base 1% and bonus 2% is interest calculation frequency: the base 1% is calculated daily on the closing balance and the bonus 2% is calculated at the end of the bonus period on the average balance. That's it.
Newbie
Nov 24, 2017
49 posts
28 upvotes
ipopov wrote:
Dec 5th, 2017 8:06 pm
NumberThree, you've been trying very hard but the math is simple: in your first example: $100,000 at 2% for 2 months = $50,000 at 2% for 4 months (offer period). I just don't see what the problem is:
$100,000*0.02/12*2(months) = $333.33
$50,000*0.02/12*4(months)=$333.33

The only difference between base 1% and bonus 2% is interest calculation frequency: the base 1% is calculated daily on the closing balance and the bonus 2% is calculated at the end of the bonus period on the average balance. That's it.
Thanks for your contribution. If what you wrote is correct, then it means Simplii would be paying interests for the days when your balance is zero. This is a very odd way of doing business.
Member
Apr 8, 2015
378 posts
335 upvotes
Roxboro, QC
Far more interesting is what people on the average (see what i did there) are putting in these accounts for the promotional period!
Deal Addict
Jan 13, 2007
1306 posts
235 upvotes
superxxxstud wrote:
Dec 5th, 2017 8:22 pm
Far more interesting is what people on the average (see what i did there) are putting in these accounts for the promotional period!
arghh - so if I lump $100k in this account today, then my average daily closing balance would include 0 contribution for Nov,?
Jr. Member
May 3, 2008
176 posts
65 upvotes
Markham
utopianbl wrote:
Dec 5th, 2017 8:34 pm
arghh - so if I lump $100k in this account today, then my average daily closing balance would include 0 contribution for Nov,?
Nope. Think of it as long as your daily balance is never below the snapshot at the beginning of Nov, you will earn 3% on ur new deposit. Obviously its prorated to your daily closing balance above the snapshot if you happen to have multiple withdrawl / deposit. But as long as you maintain ur balance > initial opening balance, you will earn 3%.
Jr. Member
Dec 22, 2006
114 posts
16 upvotes
Calgary
utopianbl wrote:
Dec 5th, 2017 8:34 pm
arghh - so if I lump $100k in this account today, then my average daily closing balance would include 0 contribution for Nov,?
Yes, so you average closing balance would be:

$100,000 * (26 days for Dec. + 31 days for Jan + 28 days for Feb) / 120 days = $70,833 assuming the you don't withdraw anything before Feb. 28, 2018
Member
Mar 20, 2016
334 posts
162 upvotes
NumberThree wrote:
Dec 5th, 2017 7:31 pm
It's not a matter of what I think, it is a matter of the fine prints on Simplii website. It is written black on white. Why don't you verify it yourself? It is clearly written in plain english, the 2% is calculated on the AVERAGE daily closing balance for the offer period (4 months). It is that simple. No one can blame Simplii if you failed to properly inform yourself of the rules of the offer.
Thank you for pointing this out...
With this being said, if I move my money to simplii by Dec 31, my bonus 2% will become 1%, plus the 1% base interest = 2% in total.
Fine... It is not a true 3% but still better than nothing...
Tricky promotion huh? This needs Marketplace investigation

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nikick