GIC Rates to INCREASE ??? | Oaken Financial | Discussion forum

Please consider registering
guest

sp_LogInOut Log In sp_Registration Register

Register | Lost password?
Advanced Search

— Forum Scope —




— Match —





— Forum Options —





Minimum search word length is 3 characters - maximum search word length is 84 characters

No permission to create posts
sp_Feed Topic RSS sp_TopicIcon
GIC Rates to INCREASE ???
March 18, 2020
2:07 pm
GR
Member
Members
Forum Posts: 628
Member Since:
September 15, 2017
sp_UserOfflineSmall Offline

Can this be correct????

Please note that effective Thursday, March 19, 2020 we will be increasing the interest rates of all of our long-term GICs (registered and non-registered) as follows:

Long-Term GICs
• 1 Year GIC – 2.50% (currently 2.40%)
• 18 Month GIC – 2.70% (currently 2.45%)
• 2 Year GIC – 2.75% (currently 2.50%)
• 3 Year GIC – 2.80% (currently 2.55%)
• 4 Year GIC – 2.85% (currently 2.60%)
• 5 Year GIC – 2.95% (currently 2.70%)

These new rates will be applied automatically for all corresponding GICs booked on Thursday, March 19, 2020 or later.

All other Oaken rates will remain unchanged.

March 18, 2020
2:17 pm
Loonie
Member
Members
Forum Posts: 9214
Member Since:
October 21, 2013
sp_UserOfflineSmall Offline

The Lord works in mysterious ways, as the saying goes.
Manna from heaven?

March 18, 2020
2:23 pm
chamnic
Member
Members
Forum Posts: 31
Member Since:
December 18, 2018
sp_UserOfflineSmall Offline

It's even higher than they were before their march 13 drop ???

March 18, 2020
2:25 pm
hwyc
GTA
Member
Members
Forum Posts: 1160
Member Since:
September 30, 2017
sp_UserOfflineSmall Offline

Hm the mail come today at 4:46pm and effective tomorrow ... and goes against the trend ? You are right - this is beyond my reasoning.

March 18, 2020
2:26 pm
Brimleychen
Member
Members
Forum Posts: 258
Member Since:
September 5, 2013
sp_UserOfflineSmall Offline

I guess BOC only bailout the big six. This market need cash for liquidity.

The C$ tanks after BOC and JT’s helicopter moneys.

https://www.bnnbloomberg.ca/canadian-economy-fighting-a-five-pronged-war-rosenberg-1.1408217

March 18, 2020
2:47 pm
ReX
Member
Banned
Forum Posts: 74
Member Since:
April 28, 2017
sp_UserOfflineSmall Offline

Loonie said
The Lord works in mysterious ways, as the saying goes.
Manna from heaven?  

You are funny in a positive waysf-smilegrew up in a Christian family and familiar with the saying...question is ...has the Lord given you substantial, immediate cash( as I suspect you have taken care of all your investments and have no liquidity) to take advantage of this offer?

On second take, I now see where you coming from...you are happy that others, not savvy as yourself, get a second chance at life...

March 18, 2020
3:10 pm
canadian.100
Member
Members
Forum Posts: 935
Member Since:
September 7, 2018
sp_UserOfflineSmall Offline

Probably not a prudent action by Oaken mgt - except they are probably short on cash flow - remember when mgt just about put Oaken out of business in 2017 - Warren Buffett came to the rescue and bailed them out. So here we go again. Wonder which FIs will be casualties as a result of this economic upheaval. No doubt there will be casualties.

March 18, 2020
3:12 pm
MyUsername
Member
Members
Forum Posts: 14
Member Since:
January 22, 2020
sp_UserOfflineSmall Offline

They've just sent a revised email - it looks like the new higher rates will be applied to all qualifying GICs booked on Mar 12 or later:

Long-Term GICs
• 1 Year GIC – 2.50% (currently 2.40%)
• 18 Month GIC – 2.70% (currently 2.45%)
• 2 Year GIC – 2.75% (currently 2.50%)
• 3 Year GIC – 2.80% (currently 2.55%)
• 4 Year GIC – 2.85% (currently 2.60%)
• 5 Year GIC – 2.95% (currently 2.70%)

These new rates will be applied automatically for all qualifying long-term GICs booked on March 12, 2020 or later.

All other Oaken rates will remain unchanged.

March 18, 2020
3:19 pm
MyUsername
Member
Members
Forum Posts: 14
Member Since:
January 22, 2020
sp_UserOfflineSmall Offline

They are probably expecting (with good reason) a significant number of mortgage payments to be late ... so new cash needed

March 18, 2020
4:21 pm
Save2Retire@55
Member
Members
Forum Posts: 845
Member Since:
January 3, 2013
sp_UserOfflineSmall Offline

My Oaken GICs are going to expire next month. Glad they increased it. Hopefully it stays high till April.

March 19, 2020
12:26 pm
toto
Member
Members
Forum Posts: 305
Member Since:
August 17, 2010
sp_UserOfflineSmall Offline

I'm maxed out at Oaken with cdic insurance.
Love their rates during this crisis, but I think there might be a slight risk to go over.

March 19, 2020
1:02 pm
savemoresaveoften
Member
Members
Forum Posts: 2747
Member Since:
March 30, 2017
sp_UserOfflineSmall Offline

always nice to take in some extra cash to have a bigger cushion during major economic event like now. Just like the guys who bought (not hoard) hand sanitizers, face mask and toilet paper early on...

March 19, 2020
5:14 pm
Loonie
Member
Members
Forum Posts: 9214
Member Since:
October 21, 2013
sp_UserOfflineSmall Offline

They must be needing a lot of extra cash to finance the otherwise insurmountable task of offering registered savings accounts.sf-laugh

March 19, 2020
6:53 pm
Save2Retire@55
Member
Members
Forum Posts: 845
Member Since:
January 3, 2013
sp_UserOfflineSmall Offline

toto said
I'm maxed out at Oaken with cdic insurance.
Love their rates during this crisis, but I think there might be a slight risk to go over.  

Each account has its own CDIC limit, right? Just open a new account 🙂 Unless I am missing something.

March 19, 2020
7:49 pm
Loonie
Member
Members
Forum Posts: 9214
Member Since:
October 21, 2013
sp_UserOfflineSmall Offline

Save2Retire@55 said

Each account has its own CDIC limit, right? Just open a new account 🙂 Unless I am missing something.  

I think you may be misunderstanding, but it depends on what you mean by "account".

toto can have up to 100K in Home Trust and up to 100K in Home Bank in non-registered funds.
And he can have the same in TFSA, and in RSP.
In each of these, it could be one big GIC or several smaller ones or a combo of GICs and savings account.
But if toto opens 3 different GICs, each at 50K at Home Bank, he will not be insured for the last GIC.

If he wants to open a joint account with someone else, then the two of them together can have an additional 100K in HT and 100K in HB, as above.

Also, you need to include the anticipated interest accumulated in order to protect the whole value.

March 19, 2020
8:30 pm
toto
Member
Members
Forum Posts: 305
Member Since:
August 17, 2010
sp_UserOfflineSmall Offline

Yes I'm maxed out with Gics on both sides, home trust and home bank.

March 20, 2020
5:31 am
Save2Retire@55
Member
Members
Forum Posts: 845
Member Since:
January 3, 2013
sp_UserOfflineSmall Offline

Yes I meant different kind of accounts not new let's say Saving or TFSA. So 1 Saving, 1 LIRA, 1 TFSA, 1 RRSP is total 400K on each bank. 2 banks 800K. Is this correct or am I dreaming?

March 20, 2020
5:47 am
savemoresaveoften
Member
Members
Forum Posts: 2747
Member Since:
March 30, 2017
sp_UserOfflineSmall Offline

Save2Retire@55 said
Yes I meant different kind of accounts not new let's say Saving or TFSA. So 1 Saving, 1 LIRA, 1 TFSA, 1 RRSP is total 400K on each bank. 2 banks 800K. Is this correct or am I dreaming?  

even if it is indeed 2 banks 800k (not expert and did not check the fine details how CDIC works) protected, you probably dont want to do it as if they do go under (unlikely), you dont want to have 800k tied up and waiting for the CDIC to issue u a check. Just spread it over a couple of names makes more sense in my mind.

March 20, 2020
6:32 am
Loonie
Member
Members
Forum Posts: 9214
Member Since:
October 21, 2013
sp_UserOfflineSmall Offline

Save2Retire@55 said
Yes I meant different kind of accounts not new let's say Saving or TFSA. So 1 Saving, 1 LIRA, 1 TFSA, 1 RRSP is total 400K on each bank. 2 banks 800K. Is this correct or am I dreaming?  

Yes, that sounds right.
I actually don't know for sure about the LIRA. It's possible it could be counted in same "box" as RSP.

March 20, 2020
6:59 am
smayer97
Member
Members
Forum Posts: 768
Member Since:
September 29, 2017
sp_UserOfflineSmall Offline

The CDIC language is quite simple, so get it from the source:
https://www.cdic.ca/your-coverage/how-deposit-insurance-works/

coverage of $100K for EACH of the 7 categories provided, per institution:
- amount in personal name alone (non-registered)
- amount in joint accts (non-registered)
- RRSP
- RRIF
- TFSA
- amount per beneficiary in a trust
- amount held for paying taxes on a mortgage

And yes, LIRA is lumped with RRSP in one category.

No permission to create posts

Please write your comments in the forum.