GIC Rate Reductions ... Effective Dec. 11th | Oaken Financial | Discussion forum

Dean said
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Today's email from Oaken ⬇

Please note that effective Friday, December 11, 2020, we will be decreasing the interest rates for some of our long-term GICs (registered and non-registered) as noted below:
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Long-term GICs
• 4 Years GIC – 1.70% (currently 1.75%)
• 5 Years GIC – 1.80% (currently 2.00%)
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All other Oaken rates will remain unchanged.
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And I had hoped the Bleeding was over.

Dean

  

I called them today. I have a TFSA maturing on the 21Jan2021. They won't guarantee the old rate if take a new term. Not sure if I'll cash it in or not. Maybe they will up their TFSA rate next month. I never get e-mails from them telling me of rate change so glad it was posted here.

davidgeorge said
Should we lock some fund for 5 year 2% with Oaken before Dec. 11?  

Depends on your strategy.
If you are laddering, you probably already have all you want maturing in 2025.
If you don't already have some maturing in 2025, I would put some in if you are a GIC investor. Nobody, repeat, Nobody, knows if rates are going up or down in the next five years or less.
You could hedge your bets a little bit by taking the interest annually instead of compounding.

P.S.
According to their current online chart, the five year rate for non-registered is 1.95%. 2% only applies to registered funds. I don't recall Oaken making these kinds of distinctions before, so was surprised. Presumably the new rates apply to both.