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I am thinking of opening a Simplii account to temporarily park some cash for higher interest rate. Should I open a checking account or high interest saving account? Thanks.
Edit: Never mind. I think I need to create a Saving account.
 

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The chequing account has always paid next to nothing ... though more than a typical chequing account.

The Savings account is higher and is the typical account for promo interest rates (along with TFSA and RRSP accounts).


I'd open both a cheqing and savings account as I find the chequing account useful for fast, low dollar email fund transfers. Plus the cheques are free so it's been useful for me when I want to write cheques.

I'm a PCF account holder that was converted to a SF account holder so I've used the free cheques/savings accounts and promo rates for a long time.

Cheers
 

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Just a reminder to everyone in Simplii, since the last promo ended it's time to withdraw all your cash!

pearl: you mentioned parking cash here for higher interest savings but it's only 0.3%. Why not Tangerine instead, which is showing 2.8% interest for 5 months (new account).
 

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Thanks james4beach. I already have Tangerin account and the rate is 0.25% right now. I expected to have much better rate with Simplii. Anyway, I think it is good to have 2 accounts. I will still waiting for mail from Simplii.
 

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Interesting. I had a pretty high balance at Oct 31, so it's just about impossible for me to actually add more cash. Perhaps their algorithm extended this offer to me (extending previous one in effect based on Oct 31) in the faint hope that I might actually bring more cash.

It could be they custom tune these more than I previously thought. Realistically I don't think I can use this promo anyway, just because I can't exceed the Oct 31 balance.

Maybe they will have a different promo coming out in the summer months, starting June 1 for example? Now I'm wondering if, despite the promo, I should transfer all my cash out in anticipation for a new promo coming soon?
So, I just logged in today and got the same offer. I had logged in yesterday and it wasn't available. The funny thing is that my current balance exceeds the Oct 31 balance, so I guess it works out for me? But I imagine it only counts new money as of 1 May for the special until August.
 

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Thanks james4beach. I already have Tangerin account and the rate is 0.25% right now. I expected to have much better rate with Simplii. Anyway, I think it is good to have 2 accounts. I will still waiting for mail from Simplii.
Well if you go back to Dec or so, it was 1.6% for the savings account and for the chequing account, something better than zero percent a big five bank gives me. :)

If a high rate is the priority then something like EQ Bank at 2.00% might be helpful.

Plus I find it useful to have somewhere to park money so that the Simplii balance is low when the new offer comes in.


The trade off is that it's another account to manage, keep track off and report on one's tax return.
There's also other competitors and if one is comfortable going away from CDIC deposit insurance coverage, online credit unions.



Cheers
 

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I was able to verify the Simplii promotional interest (their payout matched my calculation). In case it helps anyone, here's how I calculated it:

First, determine the baseline balance. In each of their promotions, they say: "portion of an Eligible Account’s average daily closing balance during the Offer Period that exceeds the closing balance as at Some Date"

The balance of all your Simplii accounts on that date is the baseline. In other words, how much money you already had at Simplii. Then, for each month of the promotion, calculate the average daily balance.

additional_bal = (avg_daily_bal - baseline)
... but can't be negative. It's 0 or greater.
promo_interest = additional_bal * (promo_rate - regular_rate) / 12

Example with made up numbers: say promo_rate = 2.5% and regular_rate = 0.5%

If baseline=1000, avg_daily_bal=999, then additional_bal=0 and there is no promotional interest at all.

If baseline=1000, avg_daily_bal=9000, then:
additional_bal = 8000
promo_interest = 8000 * (2.0%) / 12 = $13.33 that month

^ it's 2.0% interest here because the 0.5% regular interest rate was already paid out. When they say the "special annual interest rate" is 2.5%, they mean that on top of the regular 0.5% rate, you'll get another 2.0% to be applied only to the additional balance.
 
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