Complaint Letter
July 19th, 2022
Client Service
Toronto-Dominion Bank, Kelowna Branch
1633 Ellis Street Suite 410
Kelowna, British Columbia, V1Y 2A8
Attention: Mr. Alex Jensen
Dear Mr. Jensen,
Toronto-Dominion Bank is a major leader in Canada’s financial sector, and offers various excellent financial products. I have been a customer for three years, with a Student Chequing account, Everyday Savings Account, and Cash Back Credit Card, but a recent interaction with a product was confusing and somewhat agitating.
On June 27th, I switched from an Everyday Savings Account to an E-Premium Savings Account, with the understanding the annual interest rate for the new E-Premium savings account (0.5%) is fifty times higher than the Everyday Savings account’s (0.01%).
However, on June 30th, when checking the new E-Premium account’s balance for its monthly interest credit, the interest credit’s amount was much less than expected. The interest amount received was 67 cents, but the expected amount was closer to $6.70.
The expected amount was based on a calculation where I divided the E-Premium’s 0.5% annual interest rate by 100, and then multiplied the result (0.005) by the money roughly in my account ($15,000). This gave the likely yearly interest credit ($80.4), so then I divided that number by 12 to determine the likely monthly interest credit ($6.70). I double-checked TD’s website, making sure I used the right interest rate in my calculation, when I noticed a third savings account offered, the High Interest Savings account. This account stood out, because its annual interest rate was 0.05%, which is the exact interest rate that would yield 67 cents per month. I am pleased to be earning more from my savings compared with my previous account, but I wonder if when my account was switched, it was unintentionally switched to the High Interest Savings account instead of the E-Premium one.
I understand account changes take time to properly appear in digital systems and financial records, but I wanted to ensure my savings with TD are maximized, as with greater savings I could more effectively explore other TD products like Direct Investing and mutual funds.
Considering this, I would highly appreciate it if a TD representatives could confirm my account was properly switched to the E-premium Savings version, and then further discuss the account’s terms with me, making sure I fully understand the product. Since I have already received 67 cents of my interest credit, in that discussion I also hope to learn how I might claim the remaining $6.03 in interest credit I seem owed.
I appreciate your time, and am otherwise highly satisfied with all TD’s products and services. I hope this issue can be resolved before the month’s end, so that I may get the best value from TD’s excellent products.
Sincerely,
Leif Jack
Response Letter
July 19th, 2022
Mr. Leif Jack
4623 Darin Pl.
Kelowna, British Columbia
Dear Mr. Jack,
Thank you for the extended use of many TD financial products, and taking the time to research their benefits. 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.
We checked your account, 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, the calculations in the letter we received 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 the account. Since your E-Premium account was only active for 4 days of June (27th-30th), and the rest of June was with the 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, since the E-Premium account was activated on July 1st and beyond, the account should 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 in Kelowna, one on 1633 Ellis Street, and the other on 605 KLO Rd. For quick service, booking an appointment 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