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Oaken Financial for TFSA
September 15, 2019
4:20 am
3oakwest
Ontario, Canada
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I'm thinking of Oaken for my main TFSA GIC account.
As well, I would have some in a Savings account.

I also have the same at Alterna, but it would be smaller amounts.

I prefer to keep all my savings in Ontario to make things easier for my beneficiaries.

I would appreciate thoughts and recommendations for others.

Thanks

September 15, 2019
10:31 am
GICinvestor
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3oakwest said
I'm thinking of Oaken for my main TFSA GIC account.
As well, I would have some in a Savings account.

I have a TFSA Account at Oaken.
Because they do have face to face options in Vancouver.
They usually are on top of the heap for GIC rates.

But their savings account rates are NOT on top of the heap.

And if I am understanding your post......they do NOT have a savings account option for TFSA.

But I do believe their transfer OUT fee for TFSA is at no charge.

September 15, 2019
10:46 am
3oakwest
Ontario, Canada
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Thanks GIC. I plan on buying GIC's for the TFSA and maybe keeping some cash in their savings account.

September 15, 2019
11:24 am
GICinvestor
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But their savings account rates are NOT on top of the heap.

Sorry about my above comment. They ARE amongst many others with same rate.

I have found in the past that their savings rate was usually lower than Accelerate or Implicity. I don’t chase rates nor do I get into the FIs like Motus or Tangerine as they, in opinion, are not fair to all.

I only use Oaken savings as a flow through for GIC maturities, interest payments and purchases. Balance is usually zero. They do have push pull, no ATM cards and no cheque’s.

Thus I hold cash in Accelerate (no push pull, but has cheque’s and ATM card) and Implicity (has push pull, ATM cards, and cheques). But you have to watch withdrawal fees as Accelerate only offers one free per month and $1 thereafter and I believe Implicity is all free. I have only recently moved funds to Implicity to cover myself prior to Accelerate’s system conversion. Neither has best HISA rates but are constantly close to best rate and better than local FIs.

September 15, 2019
2:12 pm
3oakwest
Ontario, Canada
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I know they offer two different banks to deal with, but I can't remember which one has what to offer.
Do you know?

Thanks

September 15, 2019
2:44 pm
Norman1
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The Oaken-branded GIC's can be issued by CDIC member Home Trust Company or CDIC member Home Bank. Same rate from both issuers. For example, the five-year Oaken TFSA GIC's are currently 3.00% until end of Sept. 19.

Home Trust Company and Home Bank also offer GIC's through deposit brokers: Home Trust Company GIC's and Home Bank GIC's. Small difference in their rates. For example, the five-year Home Trust Company TFSA GIC's are 2.20% and the five-year Home Bank TFSA GIC's are 2.19%.

September 15, 2019
2:57 pm
3oakwest
Ontario, Canada
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There was a discussion a few months ago that mentioned one of the two bank options at Oaken had charges and the other didn't.

It was mixed in with another topic discussed and I would like to read it over again.

September 15, 2019
4:50 pm
GICinvestor
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Both the same both all free. You get by choosing Trust or Bank wisely, $200,000 CDIC coverage per account type.

September 15, 2019
5:08 pm
Loonie
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Perhaps the issue about fees had to do with using the parent company, not the online version (Oaken). Oaken is all free as GICI said.

September 15, 2019
11:47 pm
Doug
British Columbia, Canada
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Notwithstanding your age or risk tolerance, I personally would say neither (though, if I had to open a bank GIC or HISA as my TFSA and was shackled, kicking and screaming into it, Oaken would be it).

Having said that, I would recommend either of a Scotia iTRADE, Qtrade, Questrade, or Virtual Brokers TFSA. Among the advantages, the ability to purchase either of ETFs or mutual funds (depending on the institution) free of commissions or fees (some institutions even offer select ETFs commission-free, due to a distribution fee arrangement payable by the fund management company but not the funds themselves). You can also hold, in nominee form (sort of like an "in trust for" account, in simple terms), both HISAs and GICs for that portion of your portfolio that is risk-free and/or fixed income. It just affords you so much flexibility and, with a globally diversified, balanced portfolio, you will a better risk-adjusted return than you would holding 100% risk-free assets.

See also: https://www.highinterestsavings.ca/forum/general-financial-discussion/advice-for-investing-a-small-portfolio-25k/
for a review of balanced portfolio options, all of which are low- or low-ish cost.

Hope that helps,
Doug

September 16, 2019
8:42 am
GICinvestor
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I disagree with the above.

Use Oaken but do not go over $100,000 principal plus interest per account type. The ETF option at itTrade experience I have had over the past twelve years has been a very poor investment. Not a loss but not as good as a five year GIC rate.

September 16, 2019
10:56 am
Loonie
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Just to clarify, you can safely keep up to 200K in each account type at Oaken as long as you divide it equally between Home Bank and Home Trust. Each is separately insured by CDIC. If confused about this, discuss with Oaken staff.

How much money you make or don't make through any brokerage depends on your investment decisions.

September 16, 2019
12:14 pm
3oakwest
Ontario, Canada
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I'm 74 and would only be comfortable with GIC's at this state of my life, and feel GIC's are the route to go. Like Loonie, I would like to make it simple for my beneficiaries to receive my "fortune"
Thanks for your responses.

September 16, 2019
9:21 pm
GICinvestor
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3oakwest said
I'm 74 and would only be comfortable with GIC's at this state of my life, and feel GIC's are the route to go. Like Loonie, I would like to make it simple for my beneficiaries to receive my "fortune"
Thanks for your responses.  

Just to throw another wrench. You might want to verify who accepts your POA and Executor/Will documents created in your province. I thought I would mention as you mentioned “beneficiaries”.

September 16, 2019
10:16 pm
Rick
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3oakwest said
I'm thinking of Oaken for my main TFSA GIC account.
As well, I would have some in a Savings account.

I also have the same at Alterna, but it would be smaller amounts.

I prefer to keep all my savings in Ontario to make things easier for my beneficiaries.

I would appreciate thoughts and recommendations for others.

Thanks  

They don't have TFSA HISAs. Deal breaker for me. What are you supposed to do with your GICs once they mature? Roll em over indefinitely, cash out or transfer?
I am in the process of opening a HISA @ Oaken, but only for non-registered GICs and cash.

September 16, 2019
10:25 pm
GICinvestor
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Rick said

They don't have TFSA HISAs. Deal breaker for me. What are you supposed to do with your GICs once they mature? Roll em over indefinitely, cash out or transfer?
I am in the process of opening a HISA @ Oaken, but only for non-registered GICs and cash.  

TFSA RRSP RRIF upon maturity, reinvest at Oaken or preplan a free transfer to another FI. They send you a letter of direction about a month before maturity. I don’t like the no HISA either. But there are some no cost work arounds.

September 17, 2019
11:38 am
Loonie
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I haven't found any good no-cost workarounds. You could send it to Hubert until you decide what to do but i don't feel that's fair to Hubert and it wastes time with two transfers alhtough Oaken is very efficient with transfers.

Until I hear of a better plan, I am, with regret, staying away from Oaken for registered funds. I do have some there but am moving them out as they mature. They've been warned, but they don't seem to care.

December 18, 2019
11:19 am
hwyc
GTA
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Q. When a Tax-Free GIC matures at Oaken, is there the option of *free* transfer (principal and interest) to one's TFSA at another FI ?

...Thank you for your email.

Oaken Financial does not have any transfer fees. At maturity, you are able to transfer your TFSA to another FI using the TFSA Direct Transfer form and there will no fee.

Their Tax Free GICs still worth considering in 2020 - for the lack of better offers

December 18, 2019
1:53 pm
Dean
Slocan Valley, West Kootenays, BC.
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Rick said

They don't have TFSA HISAs. Deal breaker for me. What are you supposed to do with your GICs once they mature? Roll em over indefinitely, cash out or transfer? I am in the process of opening a HISA @ Oaken, but only for non-registered GICs and cash.  

Ditto ⬆

With no HISA's at Oaken for TFSA's, RSP's, or RIF's, I don't use their registered GIC's. And their free transfers of registered funds to other FI's, is not an incentive to me❗

Q: Does anyone know 'WHY' Oaken has this major shortcoming ... what am I missing ❓

Thanks,

Dean

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

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