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[Tangerine Savings] Tangerine 2.75% Interest Rate 0ct 4 - December 31 [TARGETED]

  • Last Updated:
  • Dec 1st, 2017 3:31 pm
Deal Guru
Jan 7, 2002
10800 posts
Waterloo, ON
eriken wrote:
Nov 11th, 2017 7:04 am
why instead not invest on dividend stock that pays monthly? Corus Enterteiment pays 9% + monthly and never missed a payment. There are safe stocks that will pay quarltly but do your due diligence
If that was such a "sure thing" i.e. low risk, don't you think all the media would be touting this strategy and everyone would already be doing it?

As for "due diligence", that's an easy phrase to bandy about as a disclaimer. It's a lot harder to do it successfully in practice.

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. And of course Corus is hardly as secure and low-risk as a big-5 Canadian bank.

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

See also my comments here and here about why equities, even blue chips, are hardly a substitute for a HISA.
veni, vidi, Visa
Mar 4, 2008
221 posts
Haven't done this with Tangerine much, but I phoned it for the first time to ask if they had a higher interest rate they could offer me, they gave me 2.5% to only savings account and not my TFSA. Most of my money is all in my TFSA...
Nov 30, 2017
25 posts
So is Thursday the best day to do a PULL into Tangerine from your external account like Simplii Financial ?

So the money will be in Tangerine the next business day - i.e Friday & will start earning interest in Tangerine from Friday.

But it won't leave Simplii Financial till Monday . So basically Fri, Sat & Sun for 3 days its earning interest in both places - Simplii & Tangerine.

Does it matter what time you do the PULL on Thursday ? Before 5.00 PM or after 5.00 PM or something like that ? Or it doesn't matter.