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Are high rates temporary?
June 7, 2018
9:25 am
christinad
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I've been considering opening an Oaken account as their 1 year gic rate is quite good. However, I remember in the past their rates weren't all that great and i'm wondering if the good rates are to do with the home trust cash flow problem and they'll go back to mediocre. Just not sure I want to go to the hassle of opening although as I believe they actually have a straight forward poa this may be to my benefit.

Right now I have accounts with Hubert and shifting out of Peoples Trust

June 7, 2018
10:33 am
Nehpets
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christinad said
...Just not sure I want to go to the hassle of opening   

As far as I know, Oaken has no minimum deposit requirement, so if it doesn't cost anything, you might want to open an Oaken savings account, link your outside FI to Oaken and keep a minimum deposit.

That way you can be ready to act quickly if and when the rates are to your liking.

Oaken's history has been more positive than negative the past few years, so being ready to act by having an open account might be worth considering. When rates are attractive, having the benefit of dual CDIC coverage with Home Trust / Home Bank might be another reason for being plugged into Oaken.

Stephen

June 7, 2018
12:13 pm
Bill
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If you've got $97K or so for each of Home Bank and Home Trust that's different than if you have $10K total. Calculate the difference between what you'll make at Oaken compared to your other best option, deduct income taxes, and then decide if that's worth it to you to open new accounts. No-one can really predict where Oaken's rates, compared to others, will be a year from now.

June 7, 2018
4:33 pm
James
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When I read the headline, I was thinking 'What high rates?'. I guess I'm waiting for the BOC rate increase. But to answer your question, there's very little hassle in opening an account at Oaken and it's easy to move money out when the GIC matures. You'll also (probably) get some chocolates at Christmas time if that influences your decision. 🙂

June 7, 2018
4:46 pm
AlainJF
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The only problem I found with Oaken is that they do not have TFSA Saving Account, nor RRSP Saving Account.

This removes some normal and expected flexibility when a TFSA or RRSP GIC comes to maturity.

June 7, 2018
5:08 pm
Loonie
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To be honest, I'm not sure what your concern is.
You are looking at a one year GIC which is at a good rate and, assuming you keep it within CDIC limits, it will be insured.

It sounds like you are concerned that, in a year's time, Oaken may be less competitive. Yes, it's possible. And it's true that before they ran into financial difficulty a year ago, Oaken's rates were becoming less competitive. Undoubtedly the goal of every bank is to not pay more than they have to.

On rates alone, the question is unanswerable.

If it were me,I'd do it.. But if you think rates are on the way down, why don't you take the five year option?

June 7, 2018
5:58 pm
christinad
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Thanks for the replies. The other thing i didn't like about oaken is there is no tfsa savings account. What happens when you don't renew a tfsa gic? Do you have to transfer money out right away or does it sit there as a gic?

June 7, 2018
9:05 pm
Loonie
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You should ask us them this question.
i believe these registered plans can sit in limbo earning no interest for a short while.

This is definitely a shortcoming for Oaken, but they are still one of the FIs that I prefer.

June 8, 2018
12:57 pm
toto
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Oaken has become my staple, great rates and two insurers. Had to renew one of my terms last week and picked up the 1 year at 2.8 . If rates are on the rise in the next little while, 2.8 is in the time ballpark

June 8, 2018
4:01 pm
Saver-Mom
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Love Oaken too, also joint accounts make it easy to increase CDIC coverage. Always pleasant to deal with. Rates have been consistently good since I’ve been with them. Toto, are you laddering or going short on all your new investments? That 3.5% is tempting given the crappy rates we have seen for years...

June 9, 2018
6:40 am
hwyc
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Oaken and EQbank both advertise attractive rates.

I recently selected Oaken GICs but w/o their Savings Account because they offer
(1) JTWROS for the non-registered
(2) monthly interest payout ... no age requirement but at slightly lower rate

June 9, 2018
7:45 am
Nehpets
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hwyc said
Oaken and EQbank both advertise attractive rates..... 

Some people have found administrative and customer service policies of EQ Bank to be intolerable, and like me, have abandoned them, despite their "attractive rates".

Oaken is more pleasant to deal with, does not put a hold on deposits, making investing in GIC's easy and painless.

Oaken is on my primary short list for the time being.

Stephen

June 9, 2018
11:43 am
snoopy
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The problem I have with oaken is that they are home capital and my understanding is there is a huge law suit underway by investors who lost money on their stock due to their fraud the size of this law suit could bankrupt the company .

While there is CDIC protection of deposits that is all way a plan b for me . not a plan a . They would have to be a viable concern . and I am waiting till the law suit is settled dose any one know if this has happened .

Please correct me if any of these facts are wrong

As for service it is important but not so much as getting your money back

June 10, 2018
1:06 pm
toto
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Hi saver mom,

I have a single, joint and in trust on both sides of the insurer at Oaken. To answer the laddering question I was going long on the terms, but decided to go one year on the last one when it matured, because poloz will probably raise in July and hopefully again before year end, so I thought I might hit it right.

June 10, 2018
1:49 pm
Dennis
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Nehpets said

hwyc said
Oaken and EQbank both advertise attractive rates..... 

Some people have found administrative and customer service policies of EQ Bank to be intolerable, and like me, have abandoned them, despite their "attractive rates".

Oaken is more pleasant to deal with, does not put a hold on deposits, making investing in GIC's easy and painless.

Oaken is on my primary short list for the time being.

Stephen  

EQ does not allow to buy GIC with money on hold. So unless the money is in bank (and free from holding), EQ takes at least 5 business days but Oaken takes only minutes.

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