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Oaken, so nice. Allows double dipping of interest.
June 30, 2022
5:18 pm
blake
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I have been moving all TFSA funds out of Oaken. They often have the money in the “transfer to” account 7 days before maturity. And is the full matured amount as well. So 1 week extra interest.

July 1, 2022
1:07 am
speedwagen
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Are you sure about that? I've never heard of funds from maturing GIC's reg'd or not being transferred before maturity. If this actually happened, somebody there screwed-up & you benefited, but there's no way that's their policy. If anything, Oaken's EFT policy has taken a turn for the worse in the last few months.

For the longest time, if you set up a transfer after 6pm ET, the funds were debited immediately, but dated next business day & guaranteed in your external acc't the following day, effectively same day with no interest lost.

Now, the official policy states 1-2 business days, but practically speaking, the funds are still debited immediately & dated the next day, however, they refrain from transmitting the funds for another day so that there's a guaranteed 1 day loss or 3 days if initiated Thursday evening.

Considering the fact that Oaken acc'ts can't be linked externally & therefore, you can't pull funds out, you're totally reliant on their transfer-out & now guaranteed to lose interest on outgoing funds.

Needless to say, I'm no longer funding any acc'ts with them, with the exception of GIC's, since we can request a cheque for principle &/or interest, which they send you 2 wks before the due date...provided they haven't discontinued that policy.

July 1, 2022
9:17 am
blake
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speedwagen said
Are you sure about that? I've never heard of funds from maturing GIC's reg'd or not being transferred before maturity.
1000% sure

If this actually happened, somebody there screwed-up & you benefited, but there's no way that's their policy. If anything, Oaken's EFT policy has taken a turn for the worse in the last few months.
That’s your opinion, I guess. Has happened before as well. My guess they do it through some type of clearing ledger which is more work for them. I think they do similar for RRIF payments too, as they cannot tell you how much was principal or interest until a week later.

For the longest time, if you set up a transfer after 6pm ET, the funds were debited immediately, but dated next business day & guaranteed in your external acc't the following day, effectively same day with no interest lost.
I have never tracked that, because I never need the funds immediately. I have a policy to leave no cash there.

Now, the official policy states 1-2 business days, but practically speaking, the funds are still debited immediately & dated the next day, however, they refrain from transmitting the funds for another day so that there's a guaranteed 1 day loss or 3 days if initiated Thursday evening.
Okay.

Considering the fact that Oaken acc'ts can't be linked externally & therefore, you can't pull funds out, you're totally reliant on their transfer-out & now guaranteed to lose interest on outgoing funds.
Okay.

Needless to say, I'm no longer funding any acc'ts with them, with the exception of GIC's, since we can request a cheque for principle &/or interest, which they send you 2 wks before the due date...provided they haven't discontinued that policy.  
Okay

July 1, 2022
12:38 pm
Loonie
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I've had Oaken transfers arrive early too but not so much lately. I had a TFSA transfer that arrived exactly on time yesterday.

I was told they send them out a few days early to be sure they get there on maturity date. Sometimes they arrive early.

July 2, 2022
9:47 am
Norman1
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I suspect it is a clerical error by the receiving financial institution. Oaken's postdated cheque was deposited early.

It used to be a common courtesy for post-dated cheques to be mailed for dividends, GIC interest, and maturing GIC principal. That way, the recipient could deposit it the day he or she was to have the funds.

July 2, 2022
5:48 pm
Loonie
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I was under the impression that post-dated cheques could be cashed at any time, and that it was a courtesy to hold them (as well as less likely to be NSF). Is that not still the case?

July 2, 2022
6:18 pm
HermanH
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I believe that is the current practice and that banks no longer bother checking dates on the instruments.

July 2, 2022
7:10 pm
Norman1
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Accepting and clearing a post-dated item early is an error.

Rule A1 specifically disallows that:

Post-Dated Items

10. No Item that is post-dated shall be Exchanged, for the purpose of Clearing and Settlement.

But, the bank is free to accept the post-dated item and front the money until the date of the item.

July 3, 2022
12:04 am
smayer97
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Norman1 said
Accepting and clearing a post-dated item early is an error.

Rule A1 specifically disallows that:

Post-Dated Items

10. No Item that is post-dated shall be Exchanged, for the purpose of Clearing and Settlement.

But, the bank is free to accept the post-dated item and front the money until the date of the item.  

From experience and from statements from banks, they no longer check the date when deposited via ATMs BUT are supposed to check if deposited at teller. If post-dated cheque deposited early at ATM, bank will only act on this IF the issuer complains of early processing.

July 3, 2022
8:47 am
blake
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@smayer97

That makes sense as ATMs get modernization like the BMO no envelope ones and phone Apps of which are very loose. Seems are based on the numbers typed in vs what is written.

July 3, 2022
12:59 pm
Loonie
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I have to agree with smayer form experience. They seem to have tacitly decided that the cost of remedying any errors due to premature cashing is less than that of ensuring they observe the dates.

July 4, 2022
7:04 am
RetirEd
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In general, there seems to be less and less verifying of deposited instruments. I was told point-blank that one institution never corrects anything under $20 unless:

1. Somebody complains
or
2. The error is not in the bank's favour.

That institution, like many others, uses a fulfillment company to process its ATM business, and seems to hate paying for error-correcting time.

RetirEd

RetirEd

July 4, 2022
12:33 pm
Loonie
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Some years aback, at least 10, I complained to TD, I had deposited a few small cheques at an ATM, and one of them had been under-credited by about five bucks. I had the deposit slip
So, I phoned. They immediately and cheerfully gave me the credit. It was clear nobody was going to be checking this out

July 4, 2022
12:38 pm
HermanH
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Very true. Spending $100 of worker time to correct a $5 error is impractical; which is why Walmart and other major retailers are considering giving customers return credit for items without even asking them to send the items back. They have significant backlogs in their warehouses and it would simply cost them more to process, transport, and store.

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