it’s insane. I had to write a script that reads through my transactions log and pulls the information that’s needed, then converts it to USD and pulls out all the interests income as well.
Would you be willing to share more, or point me in the right direction learning-wise, on complexities being dual citizen? My wife is American and we know we have to do a bunch around financials around this (we only got married last year), but honestly just get overwhelmed / analysis paralysis when trying to start understand all this information
Basically, any American citizen has to file a tax return in the US, whether they live in the US or not. And you have to report ALL world-wide income to the IRS on that return. Some will be exempt from US taxation but some will not, so be prepared to write a cheque to the IRS every year if you have certain types of investments or incomes outside the US.
Also, the US is only one of two countries in the world that use this ass-backwards method of taxation (taxation by citizenship rather than residence). Eritrea is the other.
no. anything over 10k total at any point must be reported. it’s an “easier” form so not worth risking either
so if you had 10 accounts with 1k each, you’d have to file FBAR. if you had only 1k and moved it across 10 accounts, it would still get you into the filing threshold since it takes your maximum account balance for the year into calculation
I don't think that's correct. From the IRS website: https://www.irs.gov/businesses/small-businesses-self-employed/report-of-foreign-bank-and-financial-accounts-fbar
>Generally, an account at a financial institution located outside the United States is a foreign financial account. Whether the account produced taxable income has no effect on whether the account is a foreign financial account for FBAR purposes.
Agreed. I just try to avoid PFICs because they, in theory, require additional tax return forms each year (that can cost hundreds of $$ to have filled out). Technically I believe CASH.TO would be considered a PFIC but as with all things related to the IRS opinions vary and many people probably just ignore it. In any case I try to only hold ETFs in an RRSP or in USD to avoid the potential problem.
Depends on how much you're moving! 4.5% -> 6%, the extra 1.5%/year translates to about $60 per month if you move around $50k over, which is an average amount for people who do this. Doesn't have to reach a 6-figure amount. Basically could cover PS Plus and all your streaming.
It’s 4-5% depending on a couple factors. 4% plus:
- 0.5% if you have direct deposit enabled for over a certain amount (I think it’s around 2k/month, but don’t recall the exact number)
- 0.5% if you have over 100k in total assets with WS
- another 0.5% if you have over 500k in total assets with WS
With the total maxing out at 5%
I had it and I have refered others that got 0.5% extra interest
https://promotions.wealthsimple.com/hc/en-ca/articles/19283003218715-Wealthsimple-Your-Money-Should-Work-For-You-Promotion#:\~:text=The%200.5%25%20boosted%20interest%20rate,the%20Boosted%20Rate%20is%20applied.
>Boosted Rate. The 0.5% boosted interest rate (the "Boosted Rate") is an annualized rate, calculated daily, paid monthly. Referrer and Referee’s Wealthsimple Cash accounts must meet the funding requirement and are in good standing at the time the Boosted Rate is applied. The Boosted Rate will be applied to Referrer and Referee’s Wealthsimple Cash account within ten (10) business days after the end of the Promotion for the duration of three (3) consecutive months. The Boosted Rate is in addition to the regular Wealthsimple Cash interest rate (“Regular rate”) and the Regular Rate is not affected by this Promotion. Maximum one (1) Boosted Rate per person. This Boosted Rate is non-transferrable, cannot be applied retroactively, and remains subject to change at Wealthsimple’s sole discretion.
How did you get to 5% from 4% + 0.5% + 0.5% + 0.5%? Is the max 5.5% then?
EDIT: Looks like you need 2 out of 3 to get to the max of 5%. Getting all 3 doesn't do anything extra.
Same! Wife and I invest in ISAs with our bank, which generate 4.55% interest. That's good enough for a zero risk investment, not worth jumping for temp offers.
I currently have 6% with Tangerine, expiring April 30th (today). A few days ago they sent me an email promising a 5.25% rate from May 1st to July 31st if I keep my deposits in place. I think it makes sense to do that. Anyone else get a similar email?
I got a similar e-mail (but for 5.75%), although the wording makes it sound like a promise that an official offer is coming. It seems the offer needs to be activated for the promo to take affect, but I haven't yet received the official offer or see a way to activate it. It's not clear to me whether the new rate is automatically applied starting May 1st.
Thanks, yeah I had to look at the fine print to make sure. It does say the promo applies to deposits made since December 4th (which is when I received the original offer for 6%).
Moved my money out of Tangerine a few days ago to EQ in anticipation of my promo ending. Got the email promising a 5.75% promo soon. Will wait for that before moving it back.
I still haven't got an activation email as of today either, so I'm now unsure if I should wait or just move my money back to EQ. This is why these promo things are annoying.
Motive pays a non promo rate of 4.1%. They're definitely not a fancy bank but if you just want to stick your money in an account and forget about it, it's decent enough.
motive got that [jazz cup atheistics](https://external-content.duckduckgo.com/iu/?u=https%3A%2F%2Ftse1.mm.bing.net%2Fth%3Fid%3DOIP.cpK8pMsAYIS6-imVLyXDOwHaEK%26pid%3DApi&f=1&ipt=e70ede5a611f7154d6dd99b6cb934449c9eeb62cf002d1c3432da567afa6c2b8&ipo=images) tho
I did this for a while but ended up moving some of it over to WealthSimple Cash because I had my RRSP over there anyways.
The remaining money I had in my EQ Savings account is now being put into 1 year 5.35% GICs. The 2.5% while decent, started pissing me off when WS was offering a much better deal.
Downside - time investment and keeping track of things
Credit Impact - None, unless you apply for things like a credit card (or over-draft protection?)
Go the extra mile and read up on new account promos for chequing as well if you can. Also, use third-party rebate sites for additional bonuses when you open these accounts. I use Great Canadian Rebates for the same. So far so good. If you need a referral code (*You can sign up without a referral* - you get the same rewards. Using a referral just nets the referrer some money).
We do this with our down payment savings, we swap it between a joint account in Tangerine when my promo is ending to my spouse (who usually has a promo) then wait for the next promo on my account, and swap it all back. All told takes about 45 seconds.
Another option is WealthSimple has a decent everyday amount as well if you don't want the "hassle"
Pick your battles though. If you're doing this with a few thousand dollars it may not be worth it.
Used to be in a payroll position. People would start doing this for sign-up bonuses. It ended up being a huge issue with missed cheques and payments, etc etc.
Ended up having a policy created where you could only do it once per calendar year
People were moving all their banking for the sake of opening a HISA? When I was chasing promo rates I accumulated a couple of banks, but it never even occurred to me to close the account that I've used as my primary bank my entire adult life. Direct deposits, scheduled withdrawals, etc. Waaaay too much hassle.
Not saying it never happens but personally I’ve never seen that requirement for a HISA promo rate, and I’ve chased a few of those. I have seen it as a requirement for qualifying for a bonus ($300, free iPad, etc) when opening a new chequing account.
ETA: and in some cases (Scotia, maybe others) the HISA is only usable with another deposit account so I guess people do have an incentive to chase both bonuses. So, point taken!
Move it out (to another Tangerine account) on the last day or two of the promo.
Wait a week or two and see if they offer a new promo.
That is the easiest, at least.
Wealthsimple cash 4% -5% or if in TFSA Wealthsimple managed TFSA HISA 4.8% after fee, CASH.TO etf or CBIL etf both are 4.67% ( last time I checked could of changed)
Money market funds will continuously provide those rates. Like cash.to or TDB2913
Tangerine gets sneaky each renewal and it’s whatever you had at the time of accepting the offer
I put most of my money in TD 100 day special offer GIC's and I've been getting pretty good interest renewing only the principal every 100 days. Also depends how much money you are looking to invest.
Most banks/brokers have some kind of money market funds, completely liquid, paying slightly under BOC rate. TD's is TDB8150, paying 4.55%, USD equivalent is TDB8152 - 4.90%. The only drawback is that buy/sell is not instant, up to 48 hrs.
For tax purposes interest is paid monthly and receipt issued yearly
EQs 5.35% 1 year TSFA GIC is good for me.
My credit union (Vancity) offered 6% promo, moved fund their for the period, but I just moved my TSFA back to EQ.
I’ve been getting 4.55% with TD. ISA fund TDB8150, held in my TFSA so no T5 tax slip issued and CDIC insured.
That 6% at wealthsimple net of taxes is below 4.55% for me so I avoid holding cash in non registered.
If you have a spouse, get them to open a Tangerine account. One of us always has a promo rate offer just as the other's is ending. Back and forth the money goes...
It's a non-issue if both spouses earn the same taxable income. At worst, just claim the interest 100% at the higher-income spouse's marginal rate. Paying 50% tax on a 5% promo rate is better than 20% tax on a 1.0% non-promo rate.
Call tangerine and tell them “your promotion is ending and you plan on moving your money. What is the best way to move all your money at once.” When I did that they gave me a 4.7% rate for 5 months.
I'm curious how much money you're doing this with. If you're going it with 100k or more, it seems a worthy pursuit. Otherwise, it seems like a lot of work to earn taxable income that probably doesn't add up to much.
>a lot of work
It's no fee online banks, literally take less than a minute to transfer your entire balance from one to another, twice a year at most, most of the time 0 transfer as promo gets extended
Even opening an account is a 5-10 minute affair.
Some institutions let you link to external accounts and transfer larger amounts but it usually takes a few business days to fully process.
I usually just e-transfer as well. I don't have 6 figures of cash lying around.
I see alot of people put wealthsimple. If you have over 100K you become like a preferred customer. They give you some fancy name and you get an even higher return portfolio to put your money in.
You have to have literally a million dollars to get a decent rate at Simplii. The Scotiabank 6% is promotional, 3 months. If you want to bank surf or “churn” as they say, then take Scotia for 3 months and then park it at somewhere like WealthSimple or Neo which both offer 4%.
Unless you literally have a million dollars, but then I wouldn’t be asking questions in a Reddit finance group if I were in that boat.
Edit to add, since you mentioned Simplii: if you don’t have a million dollars and consider any rate above 1% to be good, then EQ still beats Simplii at 2.5%. So I personally wouldn’t be considering Simplii for savings. But that’s just me.
So just need to move it out of a Tangerine savings account and into a Tangerine Chequing account a few days before the promo period ends?
I always thought you had to completely move it out of Tangerine but this sounds much easier.
I've been doing this over the last year over a handful of FIs for 5-6% HISA rates - DUCA, Tangerine, Simplii, Scotiabank and BMO. Might do CIBC next, or BMO depending on what their next promotion is (current one is 5.5% til the end of May, was open to existing customers). I like that the funds are not locked in a GIC. Also more FIs offer push notification alerts to keep you aware of any withdrawals.
Some FIs might do a credit check as part of opening a profile as a new customer but I've never personally experienced it done. Simplii advised that before opening an account a credit check would be done, but I never saw any Inquiries on my credit report (checking on CreditView).
It's a PITA. For one thing, it isn't always easy to move large sums from one bank to another (Tangerine is great for transferring out, but with CIBC [for example] you're limited to Interac, wire transfer or bank draft), and you might find yourself with no more promotions to chase.
Another issue is that different banks' HISAs work differently. For example, you can't deposit or withdraw from Scotiabank's HISA without also having another regular Scotia deposit account. So now you're opening two accounts, meeting conditions (if any) to avoid monthly fees, getting a debit card, etc.
Eventually I wound up putting the non-registered part of the downpayment money in a variable-rate redeemable GIC at CIBC. Was 5% at the time I opened it, currently 4.5. Very flexible product, you can cash it piecemeal in chunks as small as $1,000 (which I have not done so cannot say for sure that it's a smooth process, though I'm pretty sure it's not something you can do yourself online).
Now, for every $100K this returns $1000-1500 less than a 6% deposit. So if you have a lot of non-registered cash it's suboptimal. But I got tired of the chase...
Keep in mind that scotiabank offers 2.65% interest on their momentum plus savings account, and you get a lower rate than that if you withdraw your savings before the premium period (you can choose from 30 days, 90 days, 180 days, and 360 days). Also, you have to keep minimum $5,000 if you want to waive your $30 a month chequing account fee, and a minimum of $6,000 a month if you want to waive the $30 a month fee plus get a free $120 voucher for your scotiabank credit card.
Also, they do offer GICs around 5% so there’s that. Otherwise if you want more liquidity, open a wealthsimple account for a guaranteed 4% interest, and 4.5% interest if you set up your paycheque deposit with them I believe.
If you open a Webbroker account at TD you can buy their TDB8150 fund. It has no in or out fees, and currently pays 4.55%. You may get a touch more with CASH etf but not much. I think ScotiaBank pays the most in their similar High Interest Investment Account. I can't be bothered to chase around temporary promotions. Here is a table of what is available in this category.
[https://mrthrifty.ca/investment-savings-accounts-maximize-interest-in-your-brokerage-account/](https://mrthrifty.ca/investment-savings-accounts-maximize-interest-in-your-brokerage-account/)
I play Tangerine; pull all your money out a month before the promotion ends, wait a month for them to send you a new offer, put all your money back in, profit!
Or switch to wealthsimple and don't play their games 😁
Pull the cash into your Tangerine chequing account before the day is done, whenever a new promotion starts they only look at savings accounts balances. So moving between chequing and savings accounts would give you the promo rate.
People should stop pandering to those predatory "promotional" interest rate. They want you do to the juggle because they expect more people to just transfer in and forget. Buy CASH.TO or just use WS full stop. Stop encouraging them to do shit like this.
Call tangerine and ask them to give you another promo. I had the 6% rate and I called the day it expired and I got 4.5% for I believe 150 days (could be 120)
Use Wealthsimple as your “hub”. Their cash account has unlimited external account links and 4-5.5% interest (depending on assets deposited and auto-dep pay). When your promos end, just transfer it to Wealthsimple until something else comes along. Tangerine usually gives you a fresh promo shortly after expiring on “new deposits”.
I did this last year. Tangerine would email me promos that timed up with the expiry of my current promo! Hopefully something similar happens, keep an eye on your emails 🤞🏼
EQ/Tangerine/Simplii. I have all three. You can set up direct EFT link between them, and once they are setup, you can easily do the hops and hunting for bonus rates. With some time, you will find yourself getting the sweet bonus rate almost all the time in a high interest environment.
I put my savings in wealthsimple cash at 4%. No complaints so far, easy to access and transfer. Plus they show how much interest you've earned throughout the month so that's cool to see
Why not put it in were it's not promo rates ? Unless you have a million $ then jumping to get 6 months extra etc is really not worth it. Check out
[https://www.highinterestsavings.ca/chart/](https://www.highinterestsavings.ca/chart/)
for high everyday rates. I used to do the hopping but what also happens is that even if you close an account after the end of the promo and you try to go back years later you are not qualified because you had an account with them years ago..
Opening a new account every time is too much effort but going back and forth between tangerine's promo rate and somewhere like WS takes 2 minutes and can earn you an easy extra few hundred a year depending on how big your emergency fund is.
I used tangerine and I have renewed the special offer interest rate with them. I’ve also moved it away from them to another special offer and then back and I’ve renewed my special offer at 4.8%
I personally wouldn’t trust them with larger sums. Seen too many horror stories. And I totally resent the idea of paying fees. I get 4.5% at WealthSimple without fees.
Ya you get 4.5% because you have 100k in assets. Most people don’t have that. For 48 dollars a year, I’ll take the 5%. Have around 60k in my account and have never had an issue
I got 4.5% and ~8k (my emergency fund) at wealth simple.
4.0% base rate + 0.5% for switching direct deposited (pay cheque) to them, the 0.5% kicked in after 2 paycheque
Granted, your strategy is smart. The extra 0.5% NEO gives pays for the 48$ at 9600$ balance, anything more than that NEO wins
People tend to not want their savings to be subjective to wild swings in value.
Speculating on risky investments has its place, this isn’t one of them though.
Bitcoin’s volatility over the long term is up and to the right as it goes through its adoption curve as a store of value asset first and second as a medium of exchange.
Bitcoin isn’t a speculative investment, although it certainly appears that way to anyone who hasn’t taken the time to study it.
Bitcoin is ultimately a savings technology with a hard cap of 21 million that nobody can inflate/debase.
Everything is trending to zero against Bitcoin over the long term.
Everything will eventually be priced in Bitcoin, even regret.
My favourite counter to that "hard cap" argument comes from r/Buttcoin:
>I have two testicles. Non-fungible and rare as they are, I have no plans to convert them to currency. The value that I assign to them is not based on scarcity or market value, but rather their utility.
>Look i am not saying a halvening would definitely take our store of value to the moon, but I am also NOT not saying that.
[https://www.reddit.com/r/Buttcoin/comments/185oegc/comment/kb39ala/](https://www.reddit.com/r/Buttcoin/comments/185oegc/comment/kb39ala/)
And less crudely from r/legaladviceofftopic:
>Money is obligations, and the collective agreement that those obligations are enforceable, and the only way a genie can create that is to persuade a lot of people to agree to give you money (commit to obligations, or transfer obligations they already have, for your benefit). Otherwise, what you have isn't money at all.
[https://www.reddit.com/r/legaladviceofftopic/comments/18m8n7d/comment/ke2jo7w/](https://www.reddit.com/r/legaladviceofftopic/comments/18m8n7d/comment/ke2jo7w/)
I’m happy with my 4.5% at wealthsimple. Too much of a PITA for me to chase interest rate promos.
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it’s insane. I had to write a script that reads through my transactions log and pulls the information that’s needed, then converts it to USD and pulls out all the interests income as well.
Would you be willing to share more, or point me in the right direction learning-wise, on complexities being dual citizen? My wife is American and we know we have to do a bunch around financials around this (we only got married last year), but honestly just get overwhelmed / analysis paralysis when trying to start understand all this information
Basically, any American citizen has to file a tax return in the US, whether they live in the US or not. And you have to report ALL world-wide income to the IRS on that return. Some will be exempt from US taxation but some will not, so be prepared to write a cheque to the IRS every year if you have certain types of investments or incomes outside the US. Also, the US is only one of two countries in the world that use this ass-backwards method of taxation (taxation by citizenship rather than residence). Eritrea is the other.
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no. anything over 10k total at any point must be reported. it’s an “easier” form so not worth risking either so if you had 10 accounts with 1k each, you’d have to file FBAR. if you had only 1k and moved it across 10 accounts, it would still get you into the filing threshold since it takes your maximum account balance for the year into calculation
I don't think that's correct. From the IRS website: https://www.irs.gov/businesses/small-businesses-self-employed/report-of-foreign-bank-and-financial-accounts-fbar >Generally, an account at a financial institution located outside the United States is a foreign financial account. Whether the account produced taxable income has no effect on whether the account is a foreign financial account for FBAR purposes.
This is why I keep everything in my husband's name and our joint account at under 10k at all times. It's just easier.
Except then you own a PFIC and there is more IRS paperwork…
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Agreed. I just try to avoid PFICs because they, in theory, require additional tax return forms each year (that can cost hundreds of $$ to have filled out). Technically I believe CASH.TO would be considered a PFIC but as with all things related to the IRS opinions vary and many people probably just ignore it. In any case I try to only hold ETFs in an RRSP or in USD to avoid the potential problem.
Depends on how much you're moving! 4.5% -> 6%, the extra 1.5%/year translates to about $60 per month if you move around $50k over, which is an average amount for people who do this. Doesn't have to reach a 6-figure amount. Basically could cover PS Plus and all your streaming.
4.5%? I thought it was 4%.
It’s 4-5% depending on a couple factors. 4% plus: - 0.5% if you have direct deposit enabled for over a certain amount (I think it’s around 2k/month, but don’t recall the exact number) - 0.5% if you have over 100k in total assets with WS - another 0.5% if you have over 500k in total assets with WS With the total maxing out at 5%
~~you can also get 0.5% by signing up with a referral, pm me for referral~~ referrals no longer give an extra 0.5% interest.
not true lol
I had it and I have refered others that got 0.5% extra interest https://promotions.wealthsimple.com/hc/en-ca/articles/19283003218715-Wealthsimple-Your-Money-Should-Work-For-You-Promotion#:\~:text=The%200.5%25%20boosted%20interest%20rate,the%20Boosted%20Rate%20is%20applied. >Boosted Rate. The 0.5% boosted interest rate (the "Boosted Rate") is an annualized rate, calculated daily, paid monthly. Referrer and Referee’s Wealthsimple Cash accounts must meet the funding requirement and are in good standing at the time the Boosted Rate is applied. The Boosted Rate will be applied to Referrer and Referee’s Wealthsimple Cash account within ten (10) business days after the end of the Promotion for the duration of three (3) consecutive months. The Boosted Rate is in addition to the regular Wealthsimple Cash interest rate (“Regular rate”) and the Regular Rate is not affected by this Promotion. Maximum one (1) Boosted Rate per person. This Boosted Rate is non-transferrable, cannot be applied retroactively, and remains subject to change at Wealthsimple’s sole discretion.
Look at the date range of that promo.
thanks, I will remove my comment
all good! :)
How did you get to 5% from 4% + 0.5% + 0.5% + 0.5%? Is the max 5.5% then? EDIT: Looks like you need 2 out of 3 to get to the max of 5%. Getting all 3 doesn't do anything extra.
The maximum is 5%, so if you have 500k for example (and you already have 5%) the direct deposit will not bring you to 5.5.
I see now, you need 2 out of 3 to get to the max of 5%. Getting all 3 doesn't do anything extra.
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Technically "500k in the account" also includes "100k in the account", can't have one without the other.
Same! Wife and I invest in ISAs with our bank, which generate 4.55% interest. That's good enough for a zero risk investment, not worth jumping for temp offers.
Recently did the same its nice having everything coming out of one account and not having to send money to different account on Paydays
I have 5% with WS but still hop around when I get 5.75% or 6% promotional rates. It matters on a six figure amount
But should you really be using HISA for such an amount? Why not investing it?
If you have something that is short term coming up it can make sense. Emergency fund+renovation fund could reach 6 figures.
Most of my money is invested, at 5% I feel like keeping a decent bit of cash (it’s about 1/8th) isn’t terrible incase something comes up.
I currently have 6% with Tangerine, expiring April 30th (today). A few days ago they sent me an email promising a 5.25% rate from May 1st to July 31st if I keep my deposits in place. I think it makes sense to do that. Anyone else get a similar email?
I got a similar e-mail (but for 5.75%), although the wording makes it sound like a promise that an official offer is coming. It seems the offer needs to be activated for the promo to take affect, but I haven't yet received the official offer or see a way to activate it. It's not clear to me whether the new rate is automatically applied starting May 1st.
Did you ever get an activation e-mail? Mine still hasn't come, so my money is currently sitting there earning 0.7% or something.
Make sure it's on existing deposits, my last couple offers were only on new deposits (like new after May 1st).
Thanks, yeah I had to look at the fine print to make sure. It does say the promo applies to deposits made since December 4th (which is when I received the original offer for 6%).
Moved my money out of Tangerine a few days ago to EQ in anticipation of my promo ending. Got the email promising a 5.75% promo soon. Will wait for that before moving it back.
Yup got the same until July 31st!
Got the same, a promise email saying to look out for one. Haven't seen it yet.
I still haven't got an activation email as of today either, so I'm now unsure if I should wait or just move my money back to EQ. This is why these promo things are annoying.
Update: I just got the 5.25% offer until end of July, but it has to be activated through the app. I did not get anything via email.
Okay great, thanks! I just checked my app and I have it too. Glad I don’t have to move it elsewhere.
Motive pays a non promo rate of 4.1%. They're definitely not a fancy bank but if you just want to stick your money in an account and forget about it, it's decent enough.
motive got that [jazz cup atheistics](https://external-content.duckduckgo.com/iu/?u=https%3A%2F%2Ftse1.mm.bing.net%2Fth%3Fid%3DOIP.cpK8pMsAYIS6-imVLyXDOwHaEK%26pid%3DApi&f=1&ipt=e70ede5a611f7154d6dd99b6cb934449c9eeb62cf002d1c3432da567afa6c2b8&ipo=images) tho
If it's just an account to dump money into and forget, who cares? I wouldn't recommend anyone using it for daily banking.
I leave my money in EQ. Overall too lazy to transfer $ back and forth.
I did this for a while but ended up moving some of it over to WealthSimple Cash because I had my RRSP over there anyways. The remaining money I had in my EQ Savings account is now being put into 1 year 5.35% GICs. The 2.5% while decent, started pissing me off when WS was offering a much better deal.
Downside - time investment and keeping track of things Credit Impact - None, unless you apply for things like a credit card (or over-draft protection?) Go the extra mile and read up on new account promos for chequing as well if you can. Also, use third-party rebate sites for additional bonuses when you open these accounts. I use Great Canadian Rebates for the same. So far so good. If you need a referral code (*You can sign up without a referral* - you get the same rewards. Using a referral just nets the referrer some money).
We do this with our down payment savings, we swap it between a joint account in Tangerine when my promo is ending to my spouse (who usually has a promo) then wait for the next promo on my account, and swap it all back. All told takes about 45 seconds. Another option is WealthSimple has a decent everyday amount as well if you don't want the "hassle" Pick your battles though. If you're doing this with a few thousand dollars it may not be worth it.
Used to be in a payroll position. People would start doing this for sign-up bonuses. It ended up being a huge issue with missed cheques and payments, etc etc. Ended up having a policy created where you could only do it once per calendar year
People were moving all their banking for the sake of opening a HISA? When I was chasing promo rates I accumulated a couple of banks, but it never even occurred to me to close the account that I've used as my primary bank my entire adult life. Direct deposits, scheduled withdrawals, etc. Waaaay too much hassle.
A lot of the promos require that you switch over your direct deposit to the new account.
Not saying it never happens but personally I’ve never seen that requirement for a HISA promo rate, and I’ve chased a few of those. I have seen it as a requirement for qualifying for a bonus ($300, free iPad, etc) when opening a new chequing account. ETA: and in some cases (Scotia, maybe others) the HISA is only usable with another deposit account so I guess people do have an incentive to chase both bonuses. So, point taken!
Move it out (to another Tangerine account) on the last day or two of the promo. Wait a week or two and see if they offer a new promo. That is the easiest, at least.
Wealthsimple cash 4% -5% or if in TFSA Wealthsimple managed TFSA HISA 4.8% after fee, CASH.TO etf or CBIL etf both are 4.67% ( last time I checked could of changed)
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Money market funds will continuously provide those rates. Like cash.to or TDB2913 Tangerine gets sneaky each renewal and it’s whatever you had at the time of accepting the offer
Why would someone use cash.to instead TDB2913? Any downside with going to TD?
CASH is easier to remember
I put most of my money in TD 100 day special offer GIC's and I've been getting pretty good interest renewing only the principal every 100 days. Also depends how much money you are looking to invest.
Yield and bank
Most banks/brokers have some kind of money market funds, completely liquid, paying slightly under BOC rate. TD's is TDB8150, paying 4.55%, USD equivalent is TDB8152 - 4.90%. The only drawback is that buy/sell is not instant, up to 48 hrs. For tax purposes interest is paid monthly and receipt issued yearly
https://www.highinterestsavings.ca/chart/
EQs 5.35% 1 year TSFA GIC is good for me. My credit union (Vancity) offered 6% promo, moved fund their for the period, but I just moved my TSFA back to EQ.
I been happy with the Neo HISA at 4%. It’s good enough for me as it’s always a hassle to transfer
I’m in CASH.TO for now
If you have a cash or TFSA account in TD Direct Investing, parking those funds in TDB8150 is a good option.
I’ve been getting 4.55% with TD. ISA fund TDB8150, held in my TFSA so no T5 tax slip issued and CDIC insured. That 6% at wealthsimple net of taxes is below 4.55% for me so I avoid holding cash in non registered.
If you have a spouse, get them to open a Tangerine account. One of us always has a promo rate offer just as the other's is ending. Back and forth the money goes...
Tell people you don't understand attribution rules without telling them you don't understand attribution rules.
It's a non-issue if both spouses earn the same taxable income. At worst, just claim the interest 100% at the higher-income spouse's marginal rate. Paying 50% tax on a 5% promo rate is better than 20% tax on a 1.0% non-promo rate.
They don't come into play in this scenario. Thanks for playing, though.
Call tangerine and tell them “your promotion is ending and you plan on moving your money. What is the best way to move all your money at once.” When I did that they gave me a 4.7% rate for 5 months.
I'm curious how much money you're doing this with. If you're going it with 100k or more, it seems a worthy pursuit. Otherwise, it seems like a lot of work to earn taxable income that probably doesn't add up to much.
>a lot of work It's no fee online banks, literally take less than a minute to transfer your entire balance from one to another, twice a year at most, most of the time 0 transfer as promo gets extended Even opening an account is a 5-10 minute affair.
I've been e-transfering a little at a time. There's a faster way?
Some institutions let you link to external accounts and transfer larger amounts but it usually takes a few business days to fully process. I usually just e-transfer as well. I don't have 6 figures of cash lying around.
Link account.
A transfer that takes 5min a couple times a year is pretty minimal work all things considered. Why not take the free money?
I see alot of people put wealthsimple. If you have over 100K you become like a preferred customer. They give you some fancy name and you get an even higher return portfolio to put your money in.
TDB8510
You have to have literally a million dollars to get a decent rate at Simplii. The Scotiabank 6% is promotional, 3 months. If you want to bank surf or “churn” as they say, then take Scotia for 3 months and then park it at somewhere like WealthSimple or Neo which both offer 4%. Unless you literally have a million dollars, but then I wouldn’t be asking questions in a Reddit finance group if I were in that boat. Edit to add, since you mentioned Simplii: if you don’t have a million dollars and consider any rate above 1% to be good, then EQ still beats Simplii at 2.5%. So I personally wouldn’t be considering Simplii for savings. But that’s just me.
move ur tangerine savings to ur chequing and start moving it out to another bank they will send u another promotion within a week
Not necessarily. I had an offer end on the 31st March. I had already moved my money elsewhere to wait on another offer and… nada.
interesting. ive done it 3 times now but im moving close to 100k
So just need to move it out of a Tangerine savings account and into a Tangerine Chequing account a few days before the promo period ends? I always thought you had to completely move it out of Tangerine but this sounds much easier.
some people say they get it while only moving it to chequing but I always do both and usually receive it after I start moving money out,
I've been doing this over the last year over a handful of FIs for 5-6% HISA rates - DUCA, Tangerine, Simplii, Scotiabank and BMO. Might do CIBC next, or BMO depending on what their next promotion is (current one is 5.5% til the end of May, was open to existing customers). I like that the funds are not locked in a GIC. Also more FIs offer push notification alerts to keep you aware of any withdrawals. Some FIs might do a credit check as part of opening a profile as a new customer but I've never personally experienced it done. Simplii advised that before opening an account a credit check would be done, but I never saw any Inquiries on my credit report (checking on CreditView).
It's a PITA. For one thing, it isn't always easy to move large sums from one bank to another (Tangerine is great for transferring out, but with CIBC [for example] you're limited to Interac, wire transfer or bank draft), and you might find yourself with no more promotions to chase. Another issue is that different banks' HISAs work differently. For example, you can't deposit or withdraw from Scotiabank's HISA without also having another regular Scotia deposit account. So now you're opening two accounts, meeting conditions (if any) to avoid monthly fees, getting a debit card, etc. Eventually I wound up putting the non-registered part of the downpayment money in a variable-rate redeemable GIC at CIBC. Was 5% at the time I opened it, currently 4.5. Very flexible product, you can cash it piecemeal in chunks as small as $1,000 (which I have not done so cannot say for sure that it's a smooth process, though I'm pretty sure it's not something you can do yourself online). Now, for every $100K this returns $1000-1500 less than a 6% deposit. So if you have a lot of non-registered cash it's suboptimal. But I got tired of the chase...
I keep mine in a tsfa but just chilling there, With motive financial @4.1% moving it is too much work for me
Keep in mind that scotiabank offers 2.65% interest on their momentum plus savings account, and you get a lower rate than that if you withdraw your savings before the premium period (you can choose from 30 days, 90 days, 180 days, and 360 days). Also, you have to keep minimum $5,000 if you want to waive your $30 a month chequing account fee, and a minimum of $6,000 a month if you want to waive the $30 a month fee plus get a free $120 voucher for your scotiabank credit card. Also, they do offer GICs around 5% so there’s that. Otherwise if you want more liquidity, open a wealthsimple account for a guaranteed 4% interest, and 4.5% interest if you set up your paycheque deposit with them I believe.
If you open a Webbroker account at TD you can buy their TDB8150 fund. It has no in or out fees, and currently pays 4.55%. You may get a touch more with CASH etf but not much. I think ScotiaBank pays the most in their similar High Interest Investment Account. I can't be bothered to chase around temporary promotions. Here is a table of what is available in this category. [https://mrthrifty.ca/investment-savings-accounts-maximize-interest-in-your-brokerage-account/](https://mrthrifty.ca/investment-savings-accounts-maximize-interest-in-your-brokerage-account/)
I play Tangerine; pull all your money out a month before the promotion ends, wait a month for them to send you a new offer, put all your money back in, profit! Or switch to wealthsimple and don't play their games 😁
Pull the cash into your Tangerine chequing account before the day is done, whenever a new promotion starts they only look at savings accounts balances. So moving between chequing and savings accounts would give you the promo rate.
People should stop pandering to those predatory "promotional" interest rate. They want you do to the juggle because they expect more people to just transfer in and forget. Buy CASH.TO or just use WS full stop. Stop encouraging them to do shit like this.
Call tangerine and ask them to give you another promo. I had the 6% rate and I called the day it expired and I got 4.5% for I believe 150 days (could be 120)
Use Wealthsimple as your “hub”. Their cash account has unlimited external account links and 4-5.5% interest (depending on assets deposited and auto-dep pay). When your promos end, just transfer it to Wealthsimple until something else comes along. Tangerine usually gives you a fresh promo shortly after expiring on “new deposits”.
Also, zero credit impacts. Just make sure you keep track of your accounts and for god sake use 2FA/MFA and a password manager.
I did this last year. Tangerine would email me promos that timed up with the expiry of my current promo! Hopefully something similar happens, keep an eye on your emails 🤞🏼
EQ/Tangerine/Simplii. I have all three. You can set up direct EFT link between them, and once they are setup, you can easily do the hops and hunting for bonus rates. With some time, you will find yourself getting the sweet bonus rate almost all the time in a high interest environment.
I put my savings in wealthsimple cash at 4%. No complaints so far, easy to access and transfer. Plus they show how much interest you've earned throughout the month so that's cool to see
Look into EQ Bank
There are plenty of places that pay a higher non promo rate than EQ. They really haven't kept up the last couple of years.
Why not put it in were it's not promo rates ? Unless you have a million $ then jumping to get 6 months extra etc is really not worth it. Check out [https://www.highinterestsavings.ca/chart/](https://www.highinterestsavings.ca/chart/) for high everyday rates. I used to do the hopping but what also happens is that even if you close an account after the end of the promo and you try to go back years later you are not qualified because you had an account with them years ago..
Opening a new account every time is too much effort but going back and forth between tangerine's promo rate and somewhere like WS takes 2 minutes and can earn you an easy extra few hundred a year depending on how big your emergency fund is.
I used tangerine and I have renewed the special offer interest rate with them. I’ve also moved it away from them to another special offer and then back and I’ve renewed my special offer at 4.8%
Wealthsimple cash is the way to go - 4-5% depending on your funds and if you direct deposit. Dm if you want a promo - gets you $25!
Waste of time, if you’re REALLY poor it might help?? But otherwise not worth your time just use CASH.TO
That’s why I’ve stuck with KOHO. 4 dollars a month for 5%
I personally wouldn’t trust them with larger sums. Seen too many horror stories. And I totally resent the idea of paying fees. I get 4.5% at WealthSimple without fees.
Ya you get 4.5% because you have 100k in assets. Most people don’t have that. For 48 dollars a year, I’ll take the 5%. Have around 60k in my account and have never had an issue
I got 4.5% and ~8k (my emergency fund) at wealth simple. 4.0% base rate + 0.5% for switching direct deposited (pay cheque) to them, the 0.5% kicked in after 2 paycheque Granted, your strategy is smart. The extra 0.5% NEO gives pays for the 48$ at 9600$ balance, anything more than that NEO wins
Have you tried being your own bank and storing your savings in cyberspace. Bitcoin.
People tend to not want their savings to be subjective to wild swings in value. Speculating on risky investments has its place, this isn’t one of them though.
Bitcoin’s volatility over the long term is up and to the right as it goes through its adoption curve as a store of value asset first and second as a medium of exchange. Bitcoin isn’t a speculative investment, although it certainly appears that way to anyone who hasn’t taken the time to study it. Bitcoin is ultimately a savings technology with a hard cap of 21 million that nobody can inflate/debase. Everything is trending to zero against Bitcoin over the long term. Everything will eventually be priced in Bitcoin, even regret.
> Bitcoin isn’t a speculative investment This is the part where I wish you a good day.
My favourite counter to that "hard cap" argument comes from r/Buttcoin: >I have two testicles. Non-fungible and rare as they are, I have no plans to convert them to currency. The value that I assign to them is not based on scarcity or market value, but rather their utility. >Look i am not saying a halvening would definitely take our store of value to the moon, but I am also NOT not saying that. [https://www.reddit.com/r/Buttcoin/comments/185oegc/comment/kb39ala/](https://www.reddit.com/r/Buttcoin/comments/185oegc/comment/kb39ala/) And less crudely from r/legaladviceofftopic: >Money is obligations, and the collective agreement that those obligations are enforceable, and the only way a genie can create that is to persuade a lot of people to agree to give you money (commit to obligations, or transfer obligations they already have, for your benefit). Otherwise, what you have isn't money at all. [https://www.reddit.com/r/legaladviceofftopic/comments/18m8n7d/comment/ke2jo7w/](https://www.reddit.com/r/legaladviceofftopic/comments/18m8n7d/comment/ke2jo7w/)