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October 3, 2019
4:08 pm
Rick
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Could use a little help from someone that has experience with Oaken non-registered GIC's. I've opened a savings account with them to fund some GICs, but frustrated with the lack of knowledge by the CSR I've been talking with. First he told me I could post date the start date to freeze the rate. Now he (same guy) says that's impossible.
Ok...no biggie. I can work around that. My question is, can you take out a GIC on a weekend with the start date on a Saturday or Sunday? He didn't know. I asked what happens when a GIC matures on a non-business day, and was told it matures on the next business day with interest calculated appropriately...ie: 5 years + 1,2 or 3 days extra interest as needed.
I am trying to set up a 5 year ladder with interest paid annually to the savings account I opened. Would like 2 ladders actually... one maturing every 6 months for a cash top-up to the budget or to cash in and contribute to our TFSAs once we burn through our disposable cash. So a deposit from 2 - 5 year ladders every 6 months.
My issue is I don't want my maturity days bouncing all over the place because one matures on a weekend or stat holiday. Can't even open each ladder on a Monday and finish 5 years later on a Friday because there is a leap year in 2020. Kinda OCD...want to keep everything nice and convenient and paying out on the same days.

Can someone that has GIC's with Oaken confirm what actually happens when it rolls over and/or renews?
Mucho appreciado.

October 3, 2019
5:04 pm
GICinvestor
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Rick said
Could use a little help from someone that has experience with Oaken non-registered GIC's. I've opened a savings account with them to fund some GICs, but frustrated with the lack of knowledge by the CSR I've been talking with.

That happens. I have often been frustrated talking to them and also impressed. Call back and hope you get someone else or ask for supervisor. Your questions, from what I read, could have been answered.

First he told me I could post date the start date to freeze the rate. Now he (same guy) says that's impossible.
Ok...no biggie. I can work around that. My question is, can you take out a GIC on a weekend with the start date on a Saturday or Sunday?

Not an exact answer. But. I never have any money in my Oaken savings account for more than a few days. It is used for in/out flow for non registered GICs. What I have done, is ordered a GIC on line on a Friday. Then after, Friday, pulled the funds into Oaken from Accelerate. Then since they don’t work on weekend the GIC is done on Monday or Tuesday and backdated till the Friday even though the funds really are unlikely to be there. I am not sure but I think they did hold a rate for me once. Hubert will with conversation hold a rate for you if you start the GIC online and grab the rate....then once pull is completed you can fund the already stated GIC.

He didn't know. I asked what happens when a GIC matures on a non-business day, and was told it matures on the next business day with interest calculated appropriately...ie: 5 years + 1,2 or 3 days extra interest as needed.

Correct you will see a start date and a different end date based on number of days in a year, leap year, and or if the GIC matures on a weekend. Not a big deal. You will see dates online and on the certificate that they mail you.

I am trying to set up a 5 year ladder with interest paid annually to the savings account I opened.

Can do. I do it all the time. Go slow and make sure you ask for that when you do GIC online. Turn your alerts on and they will email you of a deposit.

Would like 2 ladders actually... one maturing every 6 months for a cash top-up to the budget or to cash in and contribute to our TFSAs once we burn through our disposable cash. So a deposit from 2 - 5 year ladders every 6 months.
My issue is I don't want my maturity days bouncing all over the place because one matures on a weekend or stat holiday. Can't even open each ladder on a Monday and finish 5 years later on a Friday because there is a leap year in 2020. Kinda OCD...want to keep everything nice and convenient and paying out on the same days.

Get over it! sf-smile No matter how well you plan it won’t be perfect but within days. I have an excel file of every GIC including date issued, date matured and what ones pay interest annually. Every January I take one of those book calendars that your realtor mails you and document all matures for the year and interest payments. I also 5 year ladder most, but not all, GICs and mostly do GICs every quarter. The exception is TFSAs to do in January ASAP in case of unexpected death, to enable spouse to acquire under the TFSA rules.

Can someone that has GIC's with Oaken confirm what actually happens when it rolls over and/or renews?

All GICs you will have a letter mailed to you weeks before maturity. You can also see instructions online and you can change them over the phone or online. And you can set up when ordering. And like I say set up your alerts.

Mucho appreciado.  

Ps. Oaken has the BEST online GIC ordering. Of the ones I use.

October 3, 2019
5:06 pm
gicjunkie
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Non business days do not exist for interest payments and renewals. Oaken is actually one of the best for paying interest on time, ie. they will actually pay the annual interest due to you in advance if it comes due on a weekend. As far as maturity goes, they pay out on the next business day after a weekend or holiday with appropriate additional interest. A lot of companies do that.

Oaken sends out a renewal notice well in advance of maturity, asking for instructions or changes to the instructions on file if necessary. You may fill out a form and mail it with amended instructions or phone them directly. Oaken will pay interest and principal, on maturity, to an off-site financial institution (for example, another bank where you have an account) or an Oaken account depending on your needs. The payment to an off-site institution actually is made on the due date. No delays. As good as Oaken can be, they have occasionally screwed up the instructions, especially when they are holding an expiring interest rate for a cheque that's in the mail. I have in the past arranged a GIC at a specific rate, right before a rate drop, submitted a cheque on time, within the allowed 5 business day waiting period, and then been given the new reduced rate in error. It took a phone call to fix it, but it was fixed. Read your GIC certificate carefully when it is issued.

As far as your maturity days bouncing around, sorry, can't control the 365 /366 day calendar pattern. The only way to control when a GIC matures is to initiate it on a day that works for you 1, 2, 3, 4 or 5 years later. Hope that helps.

October 5, 2019
9:24 am
Rick
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GICinvestor said


Correct you will see a start date and a different end date based on number of days in a year, leap year, and or if the GIC matures on a weekend. Not a big deal. You will see dates online and on the certificate that they mail you.   <br
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Kind of is a big deal. I will be opening 10 GICs totaling into 6 figures. I have enough on my plate dealing with my rsp/tfsa, as well as my wife's (I do all our banking), GICs. Don't need to make it more difficult by having 10 more with floating maturity dates. Add interest being deposited over several days, eventually weeks, just makes it too complicated for me, and eventually my wife after I kick the bucket. Just want to keep things as simple as possible.

GICinvestor said

Get over it! sf-smile No matter how well you plan it won’t be perfect but within days. I have an excel file of every GIC including date issued, date matured and what ones pay interest annually. Every January I take one of those book calendars that your realtor mails you and document all matures for the year and interest payments. I also 5 year ladder most, but not all, GICs and mostly do GICs every quarter. The exception is TFSAs to do in January ASAP in case of unexpected death, to enable spouse to acquire under the TFSA rules

Don't think I should have to get over it. Motive & Hubert don't seem to be stymied by weekends. Can open a GIC on weekend or stat with them, and rollovers and payouts are paid on or before the anniversary date. As it should be. It's all computerized. Not like someone has to come in on their day off to settle any GICs that are maturing.

gicjunkie said

As far as your maturity days bouncing around, sorry, can't control the 365 /366 day calendar pattern. The only way to control when a GIC matures is to initiate it on a day that works for you 1, 2, 3, 4 or 5 years later. Hope that helps.

Understand that. IF they allowed me to buy them on any day of the week, wouldn't have to worry about it. Since that's not possible with Oaken, can achieve purchasing 5 x 5year GIC's on business days if purchased on a Monday AFTER Feb 29. Problem there is annual interest payouts and maturity dates start getting bumped around. The longer you hold them, the more diverse the dates become.

Tried opening a GIC today (Saturday) and it bumped the start date up to Monday. Will be withdrawing all funds from Oaken and closing accounts. My bad for not doing due diligence and researching before leaping. In my defense, I have never come across this situation before. Didn't imagine it existed. Will definitely confirm how ICICI handles a similar situation before committing.

Thanx for all your input!

October 5, 2019
12:11 pm
gicjunkie
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Would definitely be wary of ICICI service. They seemed to be very inflexible. We had a 5 year GIC and had an arrangement to receive annual interest by mail. They would not, at that time, do direct deposits to another bank. To get the annual cheque, we had to remind them to send it . Lucky to get it within a week. Same issue with funds at maturity. Maybe you want to open an account there for ease of access. We don't like having to open an account where we just have a GIC, if not entirely necessary.

They can sometimes have great rates at ICICI, but awful service. Maybe things have changed there in the last couple of years. Good luck! And, you're welcome.

October 5, 2019
4:04 pm
Rick
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Definitely wary. But there is a branch 8 blocks from me, so would open a HISA account in person and have the interest deposited to it yearly. Any issues linking to other FI's?

October 5, 2019
8:31 pm
gicjunkie
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Rick said
Any issues linking to other FI's?  

We did not have this option when we dealt with them. Don't know if you can do that now. You'd better ask lots of questions and get names of people who helped you. Also triple check the info given. I personally don't trust their answers after the experience we had.

October 7, 2019
4:25 am
dentgal
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I've been banking with Oaken for a few years now buying GICs. I guess I'm missing something here, Rick. I usually don't check the day of the week when the GIC matures and of course, sometimes it falls on a weekend. Are you concerned with potentially missing a couple of days of interest? Or are you simply wondering if you should call them on the Friday before the maturity date or wait until the Monday? I think that their CSR is open on Saturday. They will not "hold" a rate; apparently they will "hold" a rate if you bring them a cheque with new funds, but otherwise they will only give the rate posted on the date that your GIC comes due. You can sign up for rate alerts--which gives you advance notice if the rates are changing (and they have recently gone down). You can also have the money, upon maturity, put into a savings account, rather than automatically "rolling over" into another GIC. I recently had some GICs mature; I called them to re-purchase new ones, but had the balance and interested accrued put into my savings account. I then transferred this money to TD. It was quick and seamless. I have no probs with Oaken. HOWEVER, I am mindful of the CDIC limits per account. So on a 2 yr Gic, I only put $95,000 in--just in case!!

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