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Oaken HISA Up and GIC's Up & Dn
August 24, 2022
6:18 am
cgouimet
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Effective Wednesday, August 24, 2022, we will be increasing the interest rate for the Oaken Savings Account, the 1 Year, and 18 Months GICs as noted below.

Oaken Savings Account: 3.00% (currently 2.25%)
1 Year GIC – 4.40% (currently 4.15%)
18 Months GIC – 4.50% (currently 4.30%)

Effective Wednesday, August 31, 2022, we will be decreasing the interest rate for the 2 Years, 3 Years, 4 Years, and 5 Years GICs as noted below:

2 Years GIC – 4.50% (currently 4.60%)
3 Years GIC – 4.50% (currently 4.70%)
4 Years GIC – 4.50% (currently 4.75%)
5 Years GIC – 4.65% (currently 5.00%)

CGO
August 24, 2022
6:42 am
COIN
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Oaken is a rate leader. This could be a sign that rates on the upside have maxed out.

August 24, 2022
7:29 am
agit
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The US10Y bond have recovered from 2.64% end of July to 3.10% today

Smart move from Oaken..., is it strategy???

August 24, 2022
9:41 am
Dean
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.
That constitutes a 'Significant' drop in Oaken's long term rates ... especially in their 3/4/5Yr GICs.

More evidence that GIC rates (in general) have Peaked ❓
Time to lock in those 5Yr GICs that are still @ 5.0% ❓

I'm guessing 'Yes' X 2.

    Dean

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

August 24, 2022
12:14 pm
Rhino
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Transferred funds from Tangerine into both OAKEN entities today; 3.00% is far better than the "negotiated" 2.60% rate until December 31, 2022 @ Tangerine.

August 24, 2022
3:08 pm
phrank
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They'll be back over 5% by the end of the year. You're just falling for their move to concern people and get them to lock in.

August 24, 2022
4:04 pm
RetirEd
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phrank: This has spread to more financial institutions. Are they really colluding on this? That would be illegal. And any FI that cut rates would lose new deposits to competitors if the competitors weren't doing it too.

I suspect this is more likely the deposit takers "pricing in" anticipated downturns, despite the US Fed's possible rate hikes to come in the next month or three.

I have no crystal ball, and you make your own decisions, but I'm glad I "took the five" earlier this month. Which is to say, my pennies have already dropped.
RetirEd

August 24, 2022
7:59 pm
phrank
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I think a lot of people may be mistakenly imagining people in these banks deciding what the rates will be in a meeting or after crunching the data. What I was alluding to was that these sorts of decisions are governed by AI now and AI is only getting better at maximizing profit for their owners by creating volatility which it controls and thereby benefits from.

So I think you're wise Retired. Do what you want when you can, then you're less likely to regret it and more likely to be comfortable with the end result.

August 24, 2022
11:27 pm
Canuck
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RetirEd said
phrank: This has spread to more financial institutions. Are they really colluding on this? That would be illegal. And any FI that cut rates would lose new deposits to competitors if the competitors weren't doing it too.

Which other financial institutions are dropping rates?

August 24, 2022
11:34 pm
HermanH
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I admire their willingness to announce rates 7-days in advance.

August 25, 2022
1:03 am
cgouimet
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HermanH said
I admire their willingness to announce rates 7-days in advance.  

Yes ... Announcing rate reductions 7 days ahead.

They also have been applying rate increases 7 days back ...

CGO
August 25, 2022
6:34 am
agit
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Paraphrasing from Reuters article this morning "Morning Bid: Bond quake" use google to search for the article. "The bond yield surge globally and a potentially bruising further repricing of bonds"

remember BoC and Fed both stated that overnight rate will be 3.25% to 3.50% by year end that is about 30% to 40% higher.

August 25, 2022
6:42 am
savemoresaveoften
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phrank said
I think a lot of people may be mistakenly imagining people in these banks deciding what the rates will be in a meeting or after crunching the data. What I was alluding to was that these sorts of decisions are governed by AI now and AI is only getting better at maximizing profit for their owners by creating volatility which it controls and thereby benefits from.

So I think you're wise Retired. Do what you want when you can, then you're less likely to regret it and more likely to be comfortable with the end result.  

Govern by AI ?! No offence but you clearly dont know how a FI's treasury department works and how decisions are made.....

And No they dont collude or need to.

August 25, 2022
7:10 am
FastJonny
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Canuck said

Which other financial institutions are dropping rates?  

Recently (Aug) Motive, EQ, Oaken, Saven, Simplii, CIBC, Peoples Trust have dropped some GIC rates. These are the ones I noticed anyway...

August 25, 2022
7:14 am
agit
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savemoresaveoften said

And No they dont collude or need to.  

you may enjoy this article
Canada’s big six banks accused of rate-rigging in U.S. lawsuit

https://globalnews.ca/news/3965936/cdor-rigging-canadian-banks-lawsuit/

August 25, 2022
8:33 am
savemoresaveoften
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agit said

you may enjoy this article
Canada’s big six banks accused of rate-rigging in U.S. lawsuit

https://globalnews.ca/news/3965936/cdor-rigging-canadian-banks-lawsuit/  

Thats totally different. CDOR rigging, LIBOR rigging during the 2008 era is nothing new. Thats done at corporate level on the trading floor.

Banks dont collude at retail level, and that is a fact. They just watch each other and then decide what to do. For example, if you watch carefully, you will know and notice that Royal Bank is always the first to come out with prime rate change post BoC announcement. And I wont tell you who is usually the last...

August 25, 2022
9:17 am
cgouimet
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agit said

you may enjoy this article
Canada’s big six banks accused of rate-rigging in U.S. lawsuit

https://globalnews.ca/news/3965936/cdor-rigging-canadian-banks-lawsuit/  

That case was dismissed. It was later appealed but I couldn't find any outcome of that ...

CGO
August 25, 2022
12:02 pm
phrank
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savemoresaveoften said

Govern by AI ?! No offence but you clearly dont know how a FI's treasury department works and how decisions are made.....

And No they dont collude or need to.  

Yes, I'm comfortable with my level of knowledge and will defer from insulting you or stepping on some high and mighty perch you so enjoy.

You do need to learn how to read better as I never said they were colluding or not.

Try to relax and accept that not everyone needs to align with your views or be treated like they're fools. Those are actions of a person I would never trust.

August 25, 2022
1:14 pm
agit
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cgouimet said

That case was dismissed. It was later appealed but I couldn't find any outcome of that ...  

savemoresaveoften said

Banks dont collude at retail level,  

A federal Appeals Court in New York City has reinstated lawsuits against 16 of the world's largest banks, including the Royal Bank of Canada,
alleging they colluded to manipulate a benchmark interest rate.

https://www.cbc.ca/news/business/libor-rigging-banks-1.3597254

August 25, 2022
1:39 pm
cgouimet
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agit said

savemoresaveoften said

Banks dont collude at retail level,  

A federal Appeals Court in New York City has reinstated lawsuits against 16 of the world's largest banks, including the Royal Bank of Canada,
alleging they colluded to manipulate a benchmark interest rate.

https://www.cbc.ca/news/business/libor-rigging-banks-1.3597254  

Do you have anything more recent than that 2016 article?

CGO
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