It’s been months since the last time President’s Choice Financial or Tangerine offered a special interest rate on savings to anyone willing to phone in and ask. I gradually have moved all of our short-term cash savings to EQ Bank and Oaken Financial because I could only get 0.8% at Tangerine or PCF. But now PC Financial seems to be back on the prowl for new customers and as an enticement they are offering a rate of 2.25% per year but only for a few months.
Can I Really Get 2.5% from PC Financial for my Savings Account?
Not really. The 2.25% rate is an annual amount but they are only offering the deal for new deposits from September 1 – December 31, 2016. Unless they extend their offer you can’t actually earn 2.25%.
This particular offer is also limited to only new deposits made to your PC Financial Savings account that raise your total holdings at PCF above the amount you had in your chequing and savings accounts at the close of the business day on August 31, 2016.
So you can’t just transfer money from your chequing to your savings account to get the bonus rate; nor can you open a new type of savings account (for example, a joint account) and move your existing savings into it.
Will PC Financial Pay Me the Bonus Interest Each Month?
No. Tangerine does that. PC Financial doesn’t. Instead, sometime in late January 2017, you’ll get a single lump sum payment of all of the bonus interest.
The bonus interest is 1.45% (annually) and is payable on your average daily closing balance in excess of your daily closing balance on August 31. You can read the full details on the PC Financial website.
The regular 0.8% (annually) interest will be paid at the end of each month as usual.
That does mean there is no compound interest earned on the bonus interest. It also means there is no tax payable on the bonus interest until you file your return for 2017 as you won’t have earned anything until 2017.
Does This PC Financial Promotion Include TFSAs or RRSPs?
No. This particular promotion is only for cash kept in their daily interest savings accounts.
Will I Leave My Savings at PC Financial Till December 31?
Personally, I’ve moved a chunk of cash from Tangerine to PC Financial to take advantage of this higher short-term interest rate. It only took a few clicks of the mouse, so why not?
However, if Tangerine sees their 2.25% rate and offers 2.5 or 3%, I will happily click again and move it back!
- Do You Play the Interest Rate Transfer Game?
- Why I Recommended my Young Relative Open Their First Bank Account at Tangerine
Are you taking advantage of this new promotion from PC Financial? Or have you received a better offer elsewhere? Please share your experience with a comment.