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Another Rate Hike?
September 24, 2018
6:06 am
gicjunkie
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Ad in Toronto Star this morning shows higher GIC rates for 5 years @ 3.60% and 1 year @ 2.90%. Other advertised rates are 3.20% for 18 months (also up) and 2.30% cashable. The Oaken website does not yet reflect these changes. Unfortunately I don't have time to be on hold on the phone with Oaken to confirm this.

September 24, 2018
6:21 am
NorthernRaven
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The Globe&Mail GIC site (which uses the CANNEX feed) is showing 3.6% on a 5-year, so they are probably just late in updating their own site and emailing customers.

September 24, 2018
6:38 am
GR
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GIC new rates:

1 yr 2.90%
2 yrs 3.30
3 yrs 3.35
4 yrs 3.40
5 yrs 3.60

September 24, 2018
7:16 am
gamgam
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Received email today:
Please note that effective today (Monday, September 24, 2018), we have increased the interest rates for our long-term GICs (registered and non-registered) as follows:
1 Year GIC – 2.90% (previously 2.80%)
18 Month GIC – 3.20% (previously 3.00%)
2 Year GIC – 3.30% (previously 3.10%)
3 Year GIC – 3.35% (previously 3.25%)
4 Year GIC – 3.40% (previously 3.30%)
5 Year GIC – 3.60% (previously 3.50%)
These new rates will be applied automatically for all corresponding GICs booked on September 17, 2018 or later.

All other Oaken rates remain unchanged.

September 24, 2018
11:08 am
Peter
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This will make them the leader across the board.

September 24, 2018
12:54 pm
Loonie
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Peter said
This will make them the leader across the board.  

They are still outflanked on the one-year GIC by Meridian (new money), OmniaDirect (Ontario) and Parama CU (Ontario); and on the five year by Meridian (new money). I realize these all have limitations but I think it's still noteworthy - and very significant for many of us who can access these better rates.
Oaken still lags on daily interest.

September 24, 2018
9:22 pm
Vatox
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Hopefully this spurs others to raise GICs too.

October 26, 2018
7:55 am
GR
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New GIC annual interest rates:

1 yr 3.00% p.a.
18 m 3.30
2 yrs 3.30
3 yrs 3.35
4 yrs 3.40
5 yrs 3.60

October 26, 2018
11:34 am
AltaRed
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Loonie said
Oaken still lags on daily interest.  

I think they intentionally are doing this given HCG's near-death experience in 2017 with a run on deposits. Better to entice deposits into less liquid GICs and avoid a repeat of 2017. Given the potential for more loan delinquencies as interest rates move up, I would be wary of alternative lenders who are still promoting high HISA rates unless they have very sound capital basis.

October 26, 2018
12:14 pm
Loonie
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I haven't retained notes but my recollection is that Oaken never did have really high HISA rates. I think they went to 1.75 for a little while.
I know for sure that I have only ever bought GICs there and never saw any reason to put money into their HISA.
I'm sure they were badly hurt by the large cash withdrawals. Some of that was from maturing GICs.

I don't see why, at this time, they couldn't match the savings rates at several other FIs or at least come closer. They have chosen not to do so.

October 26, 2018
12:36 pm
AltaRed
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Loonie said
I don't see why, at this time, they couldn't match the savings rates at several other FIs or at least come closer. They have chosen not to do so.  

Risk management reasons I think per my previous post. HISA money is too fleeting. I'd not want much of it if I was responsible for risk management at a financial institution... only enough to attract depositors to my other products.

October 26, 2018
2:57 pm
Rick
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AltaRed said

Risk management reasons I think per my previous post. HISA money is too fleeting. I'd not want much of it if I was responsible for risk management at a financial institution... only enough to attract depositors to my other products.  

What's Motives excuse? They've been at 1.5 on HISA since 2015. Good news the GIC's are continuing their slow climb. I'm sure Oaken is the first but not the last to bump. Like how the BoC rate goes up .25% and the longer terms go up .1%.

October 26, 2018
7:22 pm
Bud
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i wont look at a 5yr less than 4%

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