Personal Finance

Luminus Financial : 3.5 % Savings Account Rate - Insured.

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  • Jul 9th, 2016 9:45 pm
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Deal Fanatic
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Feb 19, 2010
6237 posts
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Who is eligible for Luminus Membership?

Luminus is an open-bond credit union, which means we can serve any Ontario resident, business or organization.
Sr. Member
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Aug 10, 2005
596 posts
54 upvotes
From the site:
After September 15, 2016, the investment savings account rate will return to its currently-posted rate of 1.75% (personal) or 1.35% (business), which remains the highest savings rate in Ontario. Interest on the investment savings account is calculated daily and paid monthly.
https://www.luminusfinancial.com/Person ... ffers/ISA/
[OP]
Banned
Jun 14, 2016
45 posts
9 upvotes
angel_wing0 wrote: Annual membership dues of $6, that's a killer.
50 cents a month is a killer ? At 3.5 % with Luminus you will make way more than The Tangerine rate, even that Tangerine rate is after haggling and begging.

More than enough to cover the 50 cents/month. Think big not penny wise, pound foolish.
Moderator
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Mar 23, 2004
43311 posts
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Markham
rfdm4g4g9 wrote: 50 cents a month is a killer ? At 3.5 % with Luminus you will make way more than The Tangerine rate, even that Tangerine rate is after haggling and begging.

More than enough to cover the 50 cents/month. Think big not penny wise, pound foolish.
True, but i dont like to pay to keep money there even if it's $6...and there are fees to move it out (which i do quite often). I rather go with EQ. The 3.5% rate is only for a few months too.
Deal Addict
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Apr 2, 2010
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GTA
angel_wing0 wrote: True, but i dont like to pay to keep money there even if it's $6...and there are fees to move it out (which i do quite often). I rather go with EQ. The 3.5% rate is only for a few months too.
+1
I too just thought Id check the fees, its overkill for a savings account to charge these fees and when the 3.5% is temporary, it kills the deal.

But thanks for sharing OP.

BTW: just moved Tangerine to EQ over the weekend :)
[OP]
Banned
Jun 14, 2016
45 posts
9 upvotes
angel_wing0 wrote: True, but i dont like to pay to keep money there even if it's $6...and there are fees to move it out (which i do quite often). I rather go with EQ. The 3.5% rate is only for a few months too.
That's the whole point. To park it there for 90 days. Its not for people who move around stuff frequently. Consider this to be a 90 day GIC for 3.5 %. Plus You can always withdraw cash at the ATM for free if you want, unlike GIC.

Where are you going to move it out anyways ? Anything better than 3.5 % out there ?

All promotional rates are for a few months, you never know how long EQ's 2.25 % rate is going to last either, it could end tomorrow.

They went from 3 % to 2.25 %, even though they never advertised it as a promotional rate. So did Zag bank, Zen bank et al, they went down pretty quick.
Moderator
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Mar 23, 2004
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Markham
rfdm4g4g9 wrote: That's the whole point. To park it there for 90 days. Its not for people who move around stuff frequently. Consider this to be a 90 day GIC for 3.5 %. Plus You can always withdraw cash at the ATM for free if you want, unlike GIC.

Where are you going to move it out anyways ? Anything better than 3.5 % out there ?
Use it to pay bills, etc etc. Considering it as a GIC is good, but I don't like my money being locked up.

To compare, let's make it easier and say the difference between this and EQ is 1.50%. On $100,000, you get around $375 (100000*1.5%*3/12) more before tax, and assume you do one EFT transfer per month, that's $4.50, and then the annual dues of $6, it comes to around $365. So if you have $100,000 to put in, the extra ~$300 might be worth it. I don't (if I do, majority of it would have went to my mortgage already), so it's not worth it for me to earn that little extra interest.
Deal Fanatic
Aug 5, 2006
6033 posts
2941 upvotes
Global Village
So if you did decide to use this to park say $10K for 91 days the only charges would be $6 for the CU fee and $5 for a certified cheque to withdraw funds if you don't want to withdraw cash? If so it may be a quick way to make $76, based on their annual fee I wouldn't want to stay with them long-term though.
Deal Guru
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May 7, 2007
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So many twists and turns ...

... and not a Canada-wide deal anyhow :)
Deal Guru
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May 7, 2007
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Conquistador wrote: Who is eligible for Luminus Membership?

Luminus is an open-bond credit union, which means we can serve any Ontario resident, business or organization.
I just called them ...

It's "Ontario residents (only basically)" ... for the landing part of their operation ..

But for the investment part ... like this particular bank account and it's current promo ... -- it's open to people outside of Ontario as well ... -- for example, I am in Winnipeg, and wouldn't have any problem opening this account / participate in current promo rate.
Sr. Member
Jul 22, 2015
594 posts
194 upvotes
Ontario
At least they're telling you upfront that this 3.5% promo is ending Sept 15th. EQ didn't do that! Anyone know how long this company has been around?
Deal Addict
Sep 19, 2009
2073 posts
872 upvotes
Toronto
I called them and it seems that the account can be opened online. The yearly $5.99 fee was mentioned as well.

A bit of deal breaker for me is the fact that there is no way to withdraw the money without a charge. This is what the CSR mentioned to me:
- they could mail me a bank draft - $8
- I could buy a checkbook for $20, write a cheque to myself and cash it at another bank.
- use the ATM, withing the daily limit.

Can anyone confirm this?
Deal Guru
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May 7, 2007
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andrew4321 wrote: I called them and it seems that the account can be opened online. The yearly $5.99 fee was mentioned as well.

A bit of deal breaker for me is the fact that there is no way to withdraw the money without a charge. This is what the CSR mentioned to me:
- they could mail me a bank draft - $8
- I could buy a checkbook for $20, write a cheque to myself and cash it at another bank.
- use the ATM, withing the daily limit.

Can anyone confirm this?
How many cheques in that book, lol? :)

Maybe if someone decides to participate in this promo with them ... get a cheque book from them for 20 bucks ...

and keep the account open beyond the promo (with very low balance in the account)...

and then be ready (by buying that cheque book) if such promo ever occurs again :)

You get 20 or 50 etc cheques in that book ... do you know? :)
Deal Addict
Sep 19, 2009
2073 posts
872 upvotes
Toronto
Darkman wrote: How many cheques in that book, lol? :)

Maybe if someone decides to participate in this promo with them ... get a cheque book from them for 20 bucks ...

and keep the account open beyond the promo (with very low balance in the account)...

and then be ready (by buying that cheque book) if such promo ever occurs again :)

You get 20 or 50 etc cheques in that book ... do you know? :)
https://www.luminusfinancial.com/Person ... equeOrder/ 100 for $20 or cheaper size, 4 for $8. When you keep the account open beyond the promo with low balance, they charge you $5.99 yearly.

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