GIC Rates Decreasing | Oaken Financial | Discussion forum

Beginning of a slow and long descent

And Peoples cut their 1-year from 5.8 to 5.65 just days before my roll-over. No rate holds available. Oh, well, it's a tiny amount.

Wouldn't you know it that I have a big GIC maturing at Oaken on Dec. 22!

I had been considering one of their 5.75% terms for one year, and should have the funds in my Home Bank HISA from the GIC maturing on the morning of the 22nd.

Now, would it be possible to open the 5.75% GIC on the evening of Dec. 21, and then have the funding pulled from my Home Bank HISA the next morning? Or would that internal transfer be instant, and thus overdraw my Home Bank account?

I recall that in opening other Oaken's GIC's, there was always a day or two's delay before the funds were pulled, but those were done with externally linked bank accounts.

RetirEd said
Rail Baron: Hey, can't hurt to try!  

Well, it might hurt if I get a NSF charge on my Home Bank savings account.

Has anyone in this forum bought a GIC and funded it internally through their Home Bank HISA? Did the debit go through immediately, or was there a day or two delay (as with externally linked accounts) while they processed the GIC?

Rail Baron said

Well, it might hurt if I get a NSF charge on my Home Bank savings account.

Has anyone in this forum bought a GIC and funded it internally through their Home Bank HISA? Did the debit go through immediately, or was there a day or two delay (as with externally linked accounts) while they processed the GIC?  

My guess is that you wouldn't incur an NSF charge in this case. But I don't even think you'd be able to open the GIC in the first place. When you get to the "how to fund" section, there simply won't be enough $ in the savings account.

I think the bigger risk to you is that they end up opening the GIC after Dec 21, and then you have to battle to get the old rate. Maybe they will, maybe they won't. Regardless, Oaken does not work fast.

I think Dean's advice is best -- give them a call on Monday and explain the situation. I bet they'll be OK with it, especially if it's going to be a larger GIC.

Rail Baron said
It turns out that Oaken's rates went down 48 hours ahead of my GIC maturing, not 24 hours. That was too long to apply for the new GIC without funds available from my old GIC.

So I'm now diving in to the world of deposit brokers, and going to obtain GICs from some of the smaller and more specialized institutions out there, at least until the next wave of promotions by Oaken, Tangerine and others.  

If you're looking at 1-year and are comfortable (and eligible) for Ontario credit unions, then take a look at Windsor Family. You can get a 1-year for 6.18% I think, which is even better than Oaken.

Rail Baron said
It turns out that Oaken's rates went down 48 hours ahead of my GIC maturing, not 24 hours. That was too long to apply for the new GIC without funds available from my old GIC.

..... at least until the next wave of promotions by Oaken, Tangerine and others.  

January (a.k.a "TFSA promo season") could be interesting this year, as Oaken is starting TFSA accounts, and the odds of doing that while not offering highly competitive GIC rates is about nil, IMO.

I was surprised that I got a call today from oaken to finally set up my 1 year commercial GIC at 6%. Here i thought they totally forgot about me. Took a whole 3 weeks. I wonder what the GiC inception date will be? Overall, looks like Oaken really is pretty reasonable but not the quickest institution.

Rail Baron said
I'm in BC, so no Ontario credit union GICs for me, at least not without a broker.

Kevin Rotenberg is still able to get >6% on GICs for a 2 year term, and the spread is now big enough that I'm prepared to sign up with a deposit broker to keep the 6% party going for a bit longer.  

Who is the 2 year with? Windsor Family? Credit Union Atlantic?

Rail Baron said
I'm in BC, so no Ontario credit union GICs for me, at least not without a broker.

Kevin Rotenberg is still able to get >6% on GICs for a 2 year term, and the spread is now big enough that I'm prepared to sign up with a deposit broker to keep the 6% party going for a bit longer.  

For me I rather choose 4y/5y at 5.6% and higher. 1y and 2y at 6% will have ur maturity right around the time when rates will be much lower for renewal/reinvestment.
Obviously every one has different strategy and needs based on one's unique situation.