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Interest rate changes
April 6, 2020
2:08 pm
JenE
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Please note that effective Thursday, April 9, 2020 we will be increasing the interest rate for our short-term GIC (non-registered) as follows:

Short-term GIC
• 90 days GIC - 2.45% (currently 2.05%)

We will also be decreasing the interest rate for some of our long-term GICs (registered and non-registered) effective Thursday, April 9, 2020 as noted below:

Long-term GICs
• 18 Month GIC – 2.60% (currently 2.70%)
• 2 Year GIC – 2.65% (currently 2.75%)
• 3 Year GIC – 2.65% (currently 2.80%)
• 4 Year GIC – 2.65% (currently 2.85%)
• 5 Year GIC – 2.65% (currently 2.95%)

These new rates will be applied automatically for all corresponding GICs booked on April 9, 2020 or later.

All other Oaken rates will remain unchanged.

April 7, 2020
12:40 am
Loonie
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They normally give us a week's notice. This is only 3 days - effectively two. Are they in crisis?

April 7, 2020
8:10 am
Doug
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Loonie said
They normally give us a week's notice. This is only 3 days - effectively two. Are they in crisis?  

I think that'd be a huge leap to make. I suspect, given the volatility in the bond markets and the frequency of central bank policy actions, they simply cannot afford to give one week rate change notices. A lot of financial institutions, much larger than Home Trust Company, don't give any advance notice.

At any rate, with Bank of Canada's purchase action in the Canadian fixed income markets to the tune of $5-10 billion per week ($5 billion in just federal government securities; they're pumping billions more into the financial system), the liquidity concerns on the secondary market for bonds has abated to a fairly significant degree. So, as I predicted, the GIC rate declines will resume in a more moderated fashion.

Barring another market shock, which is definitely possible, I expect GIC rates to trend downward over the next 2+ years, in tandem with further HISA rate declines. There's a good chance of another liquidity event, which could see GIC rates spike up in the short term, so you will have to be nimble to take advantage of those. Rate change notices and rate holds will either evaporate or shorten.

Cheers,
Doug

April 7, 2020
5:15 pm
Save2Retire@55
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I can't help but laughing. I have 3 GICs matured / ing in April. I initially requested transfer to Tangerine to benefit from Tangerine's rate increase. That didn't last enough for me to benefit from any of them. Then I requested the transfer to be cancelled. Had to send a letter and call in to get those cancelled.

And now, Oaken is decreasing their rates just 10 days before the maturing. Confusing timing!

April 16, 2020
2:01 pm
Loonie
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Please note that effective Tuesday, April 21, 2020 we will be decreasing the interest rates for all our long-term GICs (registered and non-registered) as follows:

Long-term GICs
• 1 Year GIC – 2.35% (currently 2.50%)
• 18 Month GIC – 2.40% (currently 2.60%)
• 2 Year GIC – 2.40% (currently 2.65%)
• 3 Year GIC – 2.40% (currently 2.65%)
• 4 Year GIC – 2.40% (currently 2.65%)
• 5 Year GIC – 2.50% (currently 2.65%)

All other Oaken rates will remain unchanged.

April 16, 2020
2:51 pm
GICinvestor
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PT as of today. I wonder if they will follow?

FA900346-F480-4D1D-8FCE-B73197BBCE8F.jpeg

April 17, 2020
9:03 am
Dean
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Loonie said

Please note that effective Tuesday, April 21, 2020 we will be decreasing the interest rates for all our long-term GICs (registered and non-registered) as follows:

Long-term GICs
• 1 Year GIC – 2.35% (currently 2.50%)
• 18 Month GIC – 2.40% (currently 2.60%)
• 2 Year GIC – 2.40% (currently 2.65%)
• 3 Year GIC – 2.40% (currently 2.65%)
• 4 Year GIC – 2.40% (currently 2.65%)
• 5 Year GIC – 2.50% (currently 2.65%)

All other Oaken rates will remain unchanged.  

Yup ... I got that ⬆ same email this morning.

I have very little in my Oaken SA right now, but I'd like to get in on their 18 Month GIC before the 21st.

Does anyone know if Oaken will accept a cheque in the mail, and how soon do they have to receive it ❓

Thanks for the help,

Dean

sf-cool " Live Long And Prosper " sf-cool

April 17, 2020
9:59 am
Alexandra
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Dean said

Yup ... I got that ⬆ same email this morning.

I have very little in my Oaken SA right now, but I'd like to get in on their 18 Month GIC before the 21st.

Does anyone know if Oaken will accept a cheque in the mail, and how soon do they have to receive it ❓

Thanks for the help,

Dean  

Yesterday I transferred funds to Oaken from CIBC & Tangerine. I then purchased an 18 month GIC from Oaken right away via online banking. The funds are on hold, but they will still let you purchase a GIC. It usually takes a couple of days to go through, but they give you the reference number to show that you have purchased to GIC. It only took about 5 minutes to do all three transactions.

April 17, 2020
9:59 am
GICinvestor
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Dean call them about the cheque. I usually feed them money from my Accelerate account. Ie I pull $5000 from Accelerate and then do a GIC online at Oaken and in the notes I say I have say I have pulled the money in.....which they can see as well. I asked about holding a rate and they said to do GIC first then send money. And now I am thinking...the online entry asks how you are funding....just don’t remember if one says cheque. I was also told if the timing caused me a lower rate than what I was applying for....to call them.

April 17, 2020
10:11 am
GICinvestor
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Here are the options to pay online for a TFSA...Non Registered would be similar.

Screen-Shot-2020-04-17-at-10.08.15-AM.png

Also how quickly can you set up a transfer in FI with Oaken??
Is it worthwhile to courier the cheque?

April 17, 2020
10:31 am
hwyc
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Dean said
...
Does anyone know if Oaken will accept a cheque in the mail, and how soon do they have to receive it ❓
...

Yes, mail in is one of the 4 ways with Oaken. On the downloaded mail-in form, it is written rate is good for 5 business days.

... I would apply online first to get a reference point, then send cheque by mail.

April 17, 2020
1:18 pm
Loonie
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I am aware that in some areas mail delivery is not up to usual speed right now. I'm not sure if this is supposed to be related to Covid or not, just that mail is not getting through. Should be OK in the cities, but who knows these days?

April 17, 2020
1:55 pm
GICinvestor
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Loonie said
I am aware that in some areas mail delivery is not up to usual speed right now. I'm not sure if this is supposed to be related to Covid or not, just that mail is not getting through. Should be OK in the cities, but who knows these days?  

Yes if I was Dean, I would courier or see how quickly he can set up a new push/pull at Oaken. Also couriers, are very busy too with increased on line purchases AND some are doing grocery Delivery too.

I don’t get much mail as most bills and statements are online. But I couldn’t tell you when it was when I received mail on a THURSDAY. I am convinced we only have 4 day delivery here.

As Canadians, we got totally hosed with the community box delivery. I now wonder if the postal union has a pandemic clause in their contract because we haven’t had delivery for days at a time for the past weeks.

Also I did find somewhere if they miss mailing for 2 days, Canada Post has to post it online.

Has any one here tried prescription drug delivery from Costco? Do they leave it in the community box or is a signature required?

April 17, 2020
3:31 pm
Londonguy
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GICinvestor said
Has any one here tried prescription drug delivery from Costco? Do they leave it in the community box or is a signature required?  

We've been using Costco Pharma and their delivery service for our meds for a few years now, which is delivered by Canada Post courier rather than mail. Before COVID-19 came along you had to sign for the package, but a few weeks ago they dropped that requirement. Last time they just rang the doorbell and then tossed me the courier bag from about 10 feet away. They may have suspended the signature part, but it's still being sent by courier so I don't believe they will (or even can) leave it in your regular mailbox.

Of additional interest on this subject, it just so happens that my wife currently has an order in transit that was reported as processed by Costco on the 14th and billed to the CC on file on the 15th. The Canada Post tracker email said delivery by end of day on the 15th, which would have been the normal drill. However, it is now past 6pm on the 17th and still no meds, so I starting checking things out.

From past experience I know that the package is picked up at the Costco facility in Concord for handling at the CP Mississauga Gateway facility before being trucked down the 401 to my local distribution depot. You can see these individual steps on the CP online tracker tool, which is usually very close to real-time. However, in the current instance, the little truck graphic has not moved beyond the original pickup at the Costco facility in Concord, suggesting the package is stuck at Gateway. Meanwhile, I just finished reading that there are now 8 reported infections there, so I'm thinking that's the reason for the delay.

Current disruptions aside, we've been very happy with their service, and the dispensing fee is only about 1/3 what Shopper's was charging us before we bailed

April 17, 2020
4:31 pm
GICinvestor
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Thanks londonguy

That was 2 of my concerns.
1. Non delivery. Means no drugs and a hassle to have them refilled and delivered at zero cost. And the counter that deducts from your eligibility to have them filled for 360 days worth.
2. Having to be home to accept delivery on a normal day. And then there is the lazy fill in or a contractor without the digital device that just delivers into your box, the notification to pick up at their pick up site. That defeats any savings to drive somewhere to get them.

We usually hit Costco once every 4-5 weeks so we often reorder when we have two weeks left and just combine the pick up with our grocery shopping. We have only been out once in the past 2 months. We went to Costco and 2 Save-on foods. Costco has fantastic control and stock and Save-on did not.

Thanks for sharing your experience.

April 17, 2020
4:34 pm
Loonie
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My mom, in small town southern Ontario, has not received anything for 2-3 weeks, whereas she normally would receive mail seveal times a week, including small packages (not courier).

I have been missing about one package a year recently - and I don't order that much stuff. The last one was from Euerope and the one before that was a package I sent to Ottawa.

The one to Ottawa did eventually arrive. However, it took so long that I sent a racer on it. After a long wait, the tracer said they had investigated and couldn't find it and that was the end of their story.
However, it had turned up at its destination in the interim, unbeknownst to CP. It was not reassuring to realize that their investigations were both useless and did not offer compensation, even when you have a tracking number and they can't find the darn thing.

April 18, 2020
9:33 am
Dean
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Dean said

Yup ... I got that ⬆ same email this morning.

I have very little in my Oaken SA right now, but I'd like to get in on their 18 Month GIC before the 21st.

Does anyone know if Oaken will accept a cheque in the mail, and how soon do they have to receive it ❓

Thanks for the help,

Dean  

Well ... I applied on-line yesterday for that 18 month GIC, but I was only given two (2) options for payment:

    - From my Oaken SA (which is almost empty)
    - A cheque in the mail (which I sent yesterday by registered mail).

I was told at the post office that because of the present situation (pandemic), my cheque might not get to Oaken in time (5 business days, or less).

Fingers crossed sf-confused

sf-cool " Live Long And Prosper " sf-cool

April 18, 2020
10:03 am
GICinvestor
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I was told at the post office that because of the present situation (pandemic), my cheque might not get to Oaken in time (5 business days, or less).
Fingers crossed sf-confused

Dean:
Your application has the current rate embedded into it. I did similar with Oaken years ago. They led me to believe my application would be honoured and suggested if not that if I called they would adjust in my favour.

Also years ago I was chasing rates and I had a pension thing to take care of. I used Canada Post registered mail at $15 each for a letter envelope. The work one to Montreal tracking said it it had wrong address and was undeliverable and the other to Oaken had not yet arrived.

I called for my work one as I had a per addressed envelope for the Montreal destination.....call confirmed they had received it.

I then called Oaken and they gave me the time it arrived on the 24th floor and what time it left them to move to the 25th floor.

A $30 needless head ache.

The next time I used Purolater (owned by Canada post and on same plane as Canada Post) and arrived amazingly one time within their promised number of days in transit. My Hubert one arrived in Selkirk at 9am. I have driven from Winnipeg to Lockport along the along the Red River just short of Selkirk. I was amazed that it was delivered so early. Cost from Purolater was similar. So no more expensive and unreliable Canada Post.

April 18, 2020
1:38 pm
Doug
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GICinvestor said

I was told at the post office that because of the present situation (pandemic), my cheque might not get to Oaken in time (5 business days, or less).
Fingers crossed sf-confused

Dean:
Your application has the current rate embedded into it. I did similar with Oaken years ago. They led me to believe my application would be honoured and suggested if not that if I called they would adjust in my favour.

Also years ago I was chasing rates and I had a pension thing to take care of. I used Canada Post registered mail at $15 each for a letter envelope. The work one to Montreal tracking said it it had wrong address and was undeliverable and the other to Oaken had not yet arrived.

I called for my work one as I had a per addressed envelope for the Montreal destination.....call confirmed they had received it.

I then called Oaken and they gave me the time it arrived on the 24th floor and what time it left them to move to the 25th floor.

A $30 needless head ache.

The next time I used Purolater (owned by Canada post and on same plane as Canada Post) and arrived amazingly one time within their promised number of days in transit. My Hubert one arrived in Selkirk at 9am. I have driven from Winnipeg to Lockport along the along the Red River just short of Selkirk. I was amazed that it was delivered so early. Cost from Purolater was similar. So no more expensive and unreliable Canada Post.  

Just FYI...Dean is based in the Selkirk mountains of British Columbia, not Selkirk, Manitoba, as I'm assuming that's why you referenced the Selkirk—Winnipeg drive and mailing times? I want to say he's in Nelson, or Trail. I get he and toto's location mixed up all the time as I know they both live nearby.

Also, when mailing personal cheques for GICs, do you use registered mail, Xpresspost, or regular mail? I just send them regular mail for ~$1.08 (tax incl.) or so. When my parents mailed a cheque to deposit to Hubert (since they don't have mobile deposit yet :(), it took ~5 business days via regular postal mail from West Kelowna, British Columbia, to Selkirk, Manitoba. 1 day to Vancouver, 2-3 days to Winnipeg, and 1-2 days to Selkirk. There was a weekend and a statutory holiday in there, I think, so it netted out at 7-8 calendar days.

Cheers,
Doug

April 18, 2020
5:48 pm
GICinvestor
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I said:
I have driven from Winnipeg to Lockport along the along the Red River just short of Selkirk

And Hubert is located in Selkirk. And you would likely pass through Lockport to get there.

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