1-year deposit term suggestions | GIC discussions | Discussion forum

Both are good and professional to deal with. Both are CDIC insured.
Both have no ATM cards or cheque’s. You have to set up me2me transfers. Both allow free transfer out from registered funds.

I do NOT recommend Oaken for TFSA. Oaken does NOT have savings accounts for registered funds.

I would go with PT for TFSA.

I am currently transferring all TFSA out of Oaken.

You might want to verify but last I knew PT has RRSP accounts but NO RRIF accounts.

You might also want to look at Hubert.

Loonie said
What GICInvestor says is true.
I have investments with both of them. I prefer Oaken for the smoothness and efficiency of their operation, but it can be a problem that they don't offer TFSA savings accounts, only GICs. When your TFSA GIC matures, this means you must decide what to do with it right away - either reinvest it there, transfer it to another financial institution, or cash out the TFSA. You can't just let it sit in asvings until you decide what to do or until a better offer cmes along.

Oaken has been more consistent than Peoples in offering top tier rates over several years. So, it is reasonable to think you might just want to leave your money at Oaken until such time as you plan to use it. You could just let the GICs roll over until then, but, still, it's wise to always be aware of competition.

Since you are young, you will probably have intentions of spending this money at some point. Think carefully about how long you want to tie it up in GICs.  

The nice thing about GICS is they mature. You can spend some/all or reinvest part of the funds somewhere.

One drawback with Peoples Trust is, as far as I know, they don’t give notice of their rates decreasing. Today the rates % are 2.10, 2.20, 2.30, 2.30, 2.40 for 1 to 5 years respectively.
(The GIC chart should be updated)

youngAndhungry said
Hey everyone, Just a young guy with all my money in RBC chequing account(not for long). My TFSA contribution is currently 28000 and I have 25000 I want to put away SAFELY(aka no risk).

I have been looking into GICs and the best rates I could find are with Oaken and People trust with 2.3% respectfully. Has anyone dealt with both and know which I should store my money for the one year deposit term, any advice would be greatly appreciated.  

I've never dealt with Peoples Trust, or Oaken Financial, for that matter. Both are equally good options—both earn high marks in customer service from people on these forums and elsewhere. Oaken Financial is set up in such a way so as to reportedly make linking at your external financial institutions problematic, if not functionally impossible, so that's a knock against them. Peoples Trust and Peoples Bank, by contrast, accounts can be linked seemlessly and easily on both sides. Oaken allows digital linking of accounts; Peoples Trust does not, but Peoples Bank may. That part is probably a wash (i.e., personal preference). Oaken lets you book GICs, and possibly HISAs, in the direct-to-consumer channel under both Home Trust Company and Home Bank, effectively doubling your CDIC coverage. Peoples allows this as well, but you will have separate online banking profiles.

I have dealt with Concentra Bank and their process is all digital, simple, and super easy. Downside is their HISA is just a placeholder to park your renewed GICs as it pays no interest.

The bigger question is...what is your likelihood of needing to withdraw those funds in less than one year? Either may allow you to withdraw some or all of your GIC early, but they are under no obligation to do so and, if they do, you will forfeit any interest.

My preference would probably see you to go with Hubert Financial, park it in a 1-year quarterly GIC, allowing you to withdraw, without interest penalty, all or part on each quarterly anniversary date. Also, unlimited deposit insurance coverage through the Deposit Guarantee Corporation of Manitoba.

Cheers,
Doug

Hubert website says.

The good news? You’re not locked in for the entire year — you can redeem your term after three, six, or nine months (and keep the interest that’s already been paid to you). The even better news? If you keep your funds in place for the entire year, you’ll earn an average rate of 2.20%* for the year (with compounded interest). Not too shabby, is it?

pooreva said

I am not confident this is correct info. To my best knowledge, you can close your 1-year GIC at 3, 6 and 9 months 'anniversary' and take principal and interest earned but you cannot withdraw partial amount and leave the rest until end of term (1 year).  

That ⬆ is correct.
.

Norman1 said

I suspect one needs to divide the money into multiple one-year Hubert term deposits in order to have the ability to do a "partial" redemption.

rhvic reported a while back that partial redemption of an one-year Hubert term is not permitted.  

That's ⬆ what i do.

Be aware that the rate for the one year GIC at Hubert is graduated, so the first quarter rate is lower than what you would get in some savings accounts.

In my view, the advantage of the Hubert GIC is, first, cashability in an emergency, and, second, you can upgrade at the end of each quarter if they should offer a better rate, by cashing in and repurchasing, provided the new rate of the first quarter is equal to or greater than the rate you were going to get for that quarter with the original GIC. IN the past I have done the latter a few times.

I don't know if they will honour your original rate. I doubt it. However, if you want a one-year GIC, I wouldn't wait around for rates to improve. You can always cash it in if something dramatic happens.

Unless you are already invested there in excess of your CDIC insurance limits, putting money into Motive's Savvy Savings account at 2.2%, with the money being always accessible, makes the most sense to me. The rate isn't guaranteed, but Motive tends to hold rates longer than most FIs.