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Email this8:35 am
December 17, 2016
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From Rob Carrick, Globe and Mail
The long, dark night for GIC investors and savers has finally come to an end
"The big disappointment of rising rates is that banks have moved slowly to adjust their savings and GIC rates higher. The slothful pace of rate increases looks especially greedy in light of a stunt the banks pulled when rates were falling back in 2015."
8:57 am
February 17, 2013
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Top It Up said
"The big disappointment of rising rates is that banks have moved slowly to adjust their savings and GIC rates higher. The slothful pace of rate increases looks especially greedy in light of a stunt the banks pulled when rates were falling back in 2015."
Then there's Motive, who hasn't adjusted savings account rates since 2015.
Good GIC rates though.
2:50 am
October 21, 2013
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I was amused by this comment in Oaken's current newsletter.
"The good news about the increase in interest rates is that it usually signals better returns on deposits like GICs and high interest savings accounts. The bad news is that it can take some time for those returns to show up. Financial institutions don’t automatically raise savings rates just because the Bank of Canada rate has risen. They will also make their decisions based on competitive market pressures and their own financial needs."
If I were a suspicious person, I might think this was meant to justify foot dragging. It at least suggests that Oaken has been made aware that some folks are not happy.
Many financial institutions seem to have no trouble raising their lending rates automatically, but those pesky savings and GIC rates sure can be perversely stubborn. Sometimes it seems like they've been stuck down with crazy glue. 
Dang those "competitive market pressures" - the lazy little slowpokes! Giddy-up! 
7:27 am
February 17, 2013
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Loonie said
If I were a suspicious person, I might think this was meant to justify foot dragging. It at least suggests that Oaken has been made aware that some folks are not happy.
Many financial institutions seem to have no trouble raising their lending rates automatically, but those pesky savings and GIC rates sure can be perversely stubborn. Sometimes it seems like they've been stuck down with crazy glue.
Dang those "competitive market pressures" - the lazy little slowpokes! Giddy-up!
They don't seem to be susceptible to "market pressures" when the BoC rate goes down. Their prime rate drops instantaneously if not before the BoC adjusts the rate. I guess my pressure on Motive didn't have an effect at all...nothing left in savings there and they haven't moved their savings account rates since the last drop in 2015.
8:17 am
November 19, 2014
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I would suggest that if it is slowness at raising rates that people are angry about there are far better targets (6 large ones in fact) than Oaken. Oaken being one of the few (perhaps by necessity but nevertheless) that rewards savers and consistently raises their rates.
You can of course also purchase the stocks of those institutions that raise lending rates but not deposit rates and increase their margin consistently. They make good investments and the dividend income helps you get over the anger.
Classic "can't beat 'em, join 'em"
5:59 pm
October 21, 2013
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Actually, Oaken has been largely, if not entirely, ignoring BoC increases, and has not been consistently raising their rates.
Before they got into big financial trouble a year or two ago, their rates were becoming less competitive. I am not confident they will remain market leaders. Also, if my last in-office experience is any indicator, the quality of customer service is on a slide.
I just thought it was interesting that they felt the need to justify a widespread industry practice, given their current status as market leaders.
I doubt it was because they wanted to defend the Big Six etc. I conclude that customers are asking them why Oaken hasn't responded to BoC increases.
7:08 am
November 19, 2014
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Well, unlike some posters I can't predict the future but I would feel comfortable assuming since Oaken is the rate leader today, they will probably stay near the head of the pack for a while. Certainly far ahead of the traditional banks.
I have also never had anything but excellent customer service from them. So much so that I just purchased another 5 year GIC from them two weeks ago. Very easy online process and they followed my instructions to the letter.
I was also happy with the industry leading rate they gave me. As they are already up at the head of the pack, I would assume they have (quite logically) decided to stay there until such time as their competitors catch up. Then and only then will they be likely to raise their rates. They are a profit making business after all, not a charity.
5:06 pm
September 11, 2013
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Koogie, your last sentence is dead on, it's always amusing when people expect private sector profit-based corporations to provide public services that are the purview of the public or non-profit sectors.
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