July 19th, 2022
Mr. Leif Jack
4623 Darin Pl.
Kelowna, British Columbia
Dear Mr. Jack,
Thank you for your extended use of many TD financial products, and taking the time to research what they offer. The E-Premium Savings Account indeed has a 0.5% annual interest rate, making it our highest interest-rate savings account, and we apologize the received interest credit was below what was anticipated.
Your account was checked, and the recent change to the E-Premium Savings account is reflected in the system and financial record, so fortunately, the right account type was assigned, and the savings within will receive the advertised high interest rate.
Likewise, your letter’s calculations are mathematically correct, and avoid two common misconceptions: that the account’s interest rate is a decimal value and not a percentage, and that the interest rate applies to each month, instead of being a yearly rate whose value divides across the year’s twelve months.
One factor the calculation misses however, is that the interest credit a TD account receives is calculated daily, instead of monthly. This ensures clients’ interest credits increase as soon as more money is put in account. Since your E-Premium account was only active for 4 days of June (27th-30th), and the rest of June was with your Everyday Savings Account, the interest credit received was calculated as a mix of the two interest rates (26 days with 0.01% + 4 days with 0.5%). Considering this, payment of the remaining $6.03 in interest credit for June is not currently possible, as a 0.5% interest rate was not active for the whole month.
Luckily though, since the E-Premium account was active on July 1st and beyond, the account is on track to receive interest credit on July 31st that is closer to the originally expected amount of $6.70.
If there are any questions, a meeting with a TD representative to review the E-Premium account’s terms can easily be arranged. We have two branches operating in Kelowna, one on 1633 Ellis Street, and the other on 605 KLO Rd. To ensure quick service, booking an appointment ahead of time is encouraged, but walk-ins are fine as well. Lastly, various promotions and latest offers from TD are sent through email. If any of these are of interest, we are more than happy discuss them in greater detail.
Thank you for your inquiry,
Alex Jensen,
Manager, Client Service
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