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Tangerine

A special 4.75% Savings rate* is coming soon

  • Last Updated:
  • Jan 30th, 2023 3:13 am
Newbie
Nov 25, 2014
77 posts
156 upvotes
Toronto
blueadept wrote: Somebody explain to me why this is better than putting cash in CASH.TO at 4.78% with no mucking around with promo rates. And no, CDIC doesn't matter.
I've never heard of this until now, very interesting!

My guess is, at least from my perspective, is that money that I'm putting in my HISA accounts is usually money that I need access to quickly (i.e. emergency/rainy day funds, or if I'm looking to make a large purchase in the near future and need immediately accessible cash). CASH.TO and any stock/ETF wouldn't be able to liquidate as quickly not to mention you'd have to pay any trading fees with your bank/brokerage for buying/selling. Then, if you're looking to go to no fee brokerages it makes it even slower to liquidate. Also, 4.78% appears to be the gross yield, with the ETF having a 0.13% MER, equating to 4.65% net yield and not yet accounting for trading fees.
Last edited by PhanTheMan on Jan 6th, 2023 12:32 pm, edited 1 time in total.
Member
Jun 19, 2009
485 posts
141 upvotes
Ottawa
Sigh.. didn't get the offer and EQBank only offers the regular 2.5%.. what to do..
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Jun 6, 2010
9095 posts
5059 upvotes
Toronto, Ontario
evilYoda wrote: https://www.transunion.com/article/clos ... edit-score

As usual it depends on your situation.
That article say nothing about saving account. As a matter of fact, I do not see any saving or checking account in transunion.
If I buy something that is not in deep discounted, my father will punish me; everyone will laugh at me. I will be the strange kid who doesn't fit in.
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Nov 15, 2020
5792 posts
4420 upvotes
bank account. Are you saying tangerine isnt a bank. What are you saying.
Deal Addict
Dec 28, 2007
1145 posts
736 upvotes
superxxxstud wrote: That's exactly what i said i don't want. I want it to remain at the banking/savings account level (where a lot of these teaser rates are).
I don't think you'll find what you're looking for, as the price for instant liquidity on savings is a low rate. Perhaps the best you can do is open a sufficiently large LOC/HELOC with your bank and move your savings to a higher rate elsewhere. If you need the money on short notice, pay the 1-2 days worth of interest on the LOC while you transfer your savings.
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Feb 5, 2006
7637 posts
1578 upvotes
Toronto
evilYoda wrote: it damages your credit rating.
Why not just leave $1 in the account?
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Nov 15, 2020
5792 posts
4420 upvotes
basically what im doing with my bank accounts.
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Apr 1, 2005
1223 posts
16 upvotes
Toronto
blueadept wrote: Somebody explain to me why this is better than putting cash in CASH.TO at 4.78% with no mucking around with promo rates. And no, CDIC doesn't matter.
CASH.TO wasn't on my radar, but I looked into it and found this:
https://www.ratehub.ca/bank-accounts/high-interest-etfs


What are the disadvantages of high-interest savings ETFs?
While there are advantages, there are also disadvantages:
Past performance doesn’t help you. Unfortunately, how an ETF has performed in the past can’t help you predict how it will perform in the future.
Unlike high-interest savings accounts, an ETF is not CDIC-insured. If something were to happen to the assets of the ETF for whatever reason, there’s no government insurance to secure your investment. For instance, if the ETF placed its money with a bank that failed, the ETF’s shareholders could lose a significant amount of their principal.
The second risk may seem technical but it’s worth discussing. ETFs represent underlying investments, whether in stocks, bonds, currencies, etc. At the end of every trading day, there is a value per share calculated, which is called the net asset value (NAV). In addition, there is the actual value of the shares on the stock exchange. In almost all cases, the NAV and the value per share will be nearly identical. This is because large market players stand ready to profit if they see a large difference between the NAV and the price per share. However, it’s also possible that the price per share of a high-interest savings ETF could be significantly less than the NAV of its investments. If this happens, an investor in the ETF will suffer a loss when they sell their shares. This wouldn’t happen with comparable investments like high-interest savings accounts or guaranteed investment certificates (GICs), where the bank is legally obligated to pay you back your principal plus interest.
Sr. Member
Nov 21, 2007
517 posts
623 upvotes
Peterborough
02xtreme12 wrote: I put over $40K into my Tangerine TSFA for the previous interest promo ending Dec 31st. I had not used my TSFA for the past few years, had lots of room and capped out my limit.
I received the new offer starting Jan 5 from Tangerine, however, TSFA is not included.
Should I move the $40K from my Tangerine TSFA to my high interest savings?

I also have an offer from Simplii for 5%, believe it is also high interest savings only and not TSFA.

Thanks in advance
You could buy a 1 year GIC in your Tangerine TFSA. Currently sitting at 4.85%
Newbie
Feb 6, 2017
77 posts
8 upvotes
Anyone transfer a TSFA from Tangerine to Simplii?
Look like Simplii requires transfer form and may take 12-25 days.
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Dec 18, 2017
1486 posts
3451 upvotes
Vancouver, BC
So if I don't have a Tangerine account yet, what's the best promo out there for me? This one here appears to only be for existing customers.
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Deal Addict
Nov 10, 2012
2754 posts
2076 upvotes
Calgary
blueadept wrote: Somebody explain to me why this is better than putting cash in CASH.TO at 4.78% with no mucking around with promo rates. And no, CDIC doesn't matter.
One thing I am wondering about CASH.TO is how the distributions are taxed… does your tax slip come through as interest income? Return of capital? Obviously can’t be eligible dividends (wouldn’t that be nice).
Deal Addict
Aug 1, 2010
1120 posts
779 upvotes
blueadept wrote: Somebody explain to me why this is better than putting cash in CASH.TO at 4.78% with no mucking around with promo rates. And no, CDIC doesn't matter.
CASH.TO has a 0.13% MER which actually equates to 4.65. 4.75>4.65.
You may also lose a couple cents per share on the spread if you need to liquidate quickly.
Member
User avatar
Jul 1, 2008
392 posts
72 upvotes
How does interest work if you use CASH.TO as a bank account, in and our multiple times a month? Do they compute all daily closing balances?
Deal Addict
Oct 13, 2008
1635 posts
2203 upvotes
Mississauga
I received a promotional offer of 5% on all my accounts from Jan. 10, 2023 till May 31, 2023. This includes TFSA Savings, RSP Savings, US$ Savings and HISA accounts this morning in my insights. This is on new deposits as I had emptied out all my accounts. Please check your insights today!
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Member
Mar 17, 2017
365 posts
170 upvotes
jadoogar wrote: I received a promotional offer of 5% on all my accounts from Jan. 10, 2023 till May 31, 2023. This includes TFSA Savings, RSP Savings, US$ Savings and HISA accounts this morning in my insights. This is on new deposits as I had emptied out all my accounts. Please check your insights today!
Lucky! I didnt receive nothing
Sr. Member
Nov 21, 2007
517 posts
623 upvotes
Peterborough
I received the 5% offer as well. My question is that I transferred my money to EQ on Saturday January 8th (the transaction then posted on the 9th). The new offer states the interest will be on amounts over the account balance as of January 9th. If the transfer happened on the 9th, when are they looking at the account balance, at the start of the 9th or the end?

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