June 7, 2022
I noticed that Oaken Financial does not calculate interest in the same way as other financial institutions do. Specifically:
1) when I made a deposit on Dec 8, I expected to receive interest on that deposit for 24 days (Dec 8 to 31 inclusive);
2) when the interest rate changed effective Feb 03, 2022 (as per official announcement), I expected to receive the higher rate applied for 26days (Feb 3 to 28 inclusive); and
3) when the interest rate changed effective Apr 14, 2022 (as per official announcement), I expected to receive the higher rate applied for 17 days (Apr 14 to 30 inclusive).
In each instance noted above, I received the applicable interest for one day less than expected. During the nearly six months of calling and calling and calling, I was given various reasons such as:
a) your deposit was not received until later in the day so you don't get interest on that day; and
b) you don't receive the increased interest rate until the day after the "effective" date of the interest rate increase.
After speaking many times with many customer service agents I was finally told it is company policy to pay interest "up to, but not for, the last day of the month" and then post that amount to my account on the last day of the month. The interest payable for the last day of the month is then included in the calculation for the next month's interest payment - thus reasoning that "the customer is not shorted on interest but one day's interest is merely delayed to the following month and ultimately, when the customer withdraws funds from the account, everything will balance out".
I see the (intended) effect of Oaken's "policy" to cleverly defer one day's interest, compounded monthly, in perpetuity.
Has anyone else experienced this with Oaken or other institutions?
September 30, 2017
April 6, 2013
Yes, Simplii Financial does the same thing.
EQ Bank does something similar. Interest is calculated for first day to last day of month. Interest is credited on the first day of the next month.
January 12, 2019
April 6, 2013
It is not material whether the monthly interest is paid
- on the last day of the month, after the balance for the last day is closed, or
- at the open of first day of the next month.
#1 was just a common hack to get the interest paid to show on that monthly statement.
I suspect someone realized that the hack could be eliminated if one paid interest instead on the last day of the month for the daily closing balances from the last day of previous month to the second to last day of the current month.
November 18, 2017
March 30, 2017