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Rate Alert - effective March 11, 2019
March 4, 2019
2:36 pm
hwyc
GTA
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Anybody rec'd Oaken email today ?
GICs trending downward ranging 0.05% to 0.25%

March 4, 2019
2:39 pm
GR
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Effective Monday, March 11, 2019:
Long-term GICs (registered and non-registered)
• 1 Year GIC – 3.00% (currently 3.10%)
• 18 Month GIC – 3.20% (currently 3.30%)
• 2 Year GIC – 3.20% (currently 3.30%)
• 3 Year GIC – 3.30% (currently 3.35%)
• 4 Year GIC – 3.35% (currently 3.40%)
• 5 Year GIC – 3.40% (currently 3.60%)
Short-term GICs
• 30-59 Days – 2.30% (currently 1.90%)
• 60-89 Days – 2.30% (currently 1.90%)
• 90-119 Days – 2.30% (currently 1.90%)
• 120-179 Days – 2.30% (currently 2.00%)
• 180-269 Days – 2.45% (currently 2.75%)
• 270-364 Days – 2.50% (currently 2.75%)
1 Year Cashable GICs
• After 30 Days – 2.30% (currently 1.80%)
• After 90 Days – 2.35% (currently 2.30%)

March 4, 2019
6:39 pm
Loonie
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Why all the emphasis on the very short term, under six months? - and not very good at that. You can do better in any number of HISAs or a Hubert graduated one-year.

March 4, 2019
7:49 pm
Brimleychen
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For long term, Hubert 4 years is still at 3.55%. Although it was not as good as 4 years at 4% from Ganaraska a few days ago, it is still a very good rate. Hope it won’t drop soon.

March 4, 2019
7:55 pm
Jon
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Loonie said
Why all the emphasis on the very short term, under six months? - and not very good at that. You can do better in any number of HISAs or a Hubert graduated one-year.  

Maybe because after the previous bank run, they want to use short term GIC instead of saving account in order to make their liquidity situation more controllable.

March 4, 2019
9:29 pm
Loonie
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Jon said

Maybe because after the previous bank run, they want to use short term GIC instead of saving account in order to make their liquidity situation more controllable.  

Maybe, but they are only offering 2.3%, which is the same as their HISA rate, so there isn't much incentive.
They aren't the only ones doing this either. EQ and Tang are similar - and with better short rates.

March 5, 2019
12:19 pm
-bsv-
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But for those who open an account before - rates will remain the same, right?

March 5, 2019
4:28 pm
GR
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-bsv- said
But for those who open an account before - rates will remain the same, right?  

Rates on GICs purchased this week won't change.

March 10, 2019
10:56 am
Doug
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GR said
Effective Monday, March 11, 2019:
Long-term GICs (registered and non-registered)
• 1 Year GIC – 3.00% (currently 3.10%)
• 18 Month GIC – 3.20% (currently 3.30%)
• 2 Year GIC – 3.20% (currently 3.30%)
• 3 Year GIC – 3.30% (currently 3.35%)
• 4 Year GIC – 3.35% (currently 3.40%)
• 5 Year GIC – 3.40% (currently 3.60%)
Short-term GICs
• 30-59 Days – 2.30% (currently 1.90%)
• 60-89 Days – 2.30% (currently 1.90%)
• 90-119 Days – 2.30% (currently 1.90%)
• 120-179 Days – 2.30% (currently 2.00%)
• 180-269 Days – 2.45% (currently 2.75%)
• 270-364 Days – 2.50% (currently 2.75%)
1 Year Cashable GICs
• After 30 Days – 2.30% (currently 1.80%)
• After 90 Days – 2.35% (currently 2.30%)  

Loonie said
Why all the emphasis on the very short term, under six months? - and not very good at that. You can do better in any number of HISAs or a Hubert graduated one-year.  

Indeed...it's unusual to see short-term GIC rates (less than one year) go up so substantially, and all to the same rate as the current Oaken HISA rate. On one hand, it makes sense to try and lock those customers into a 30, 90, 180, or 270 day term, but what's curious to me is why not offer an incremental 5-10 bps step up with each short term, such that say someone holding a GIC for 6-12 months could get 2.5-2.75%?

Oaken is definitely focusing, smartly, on GICs instead of HISAs that caused the liquidity crisis in 2017. I will have more to say on this later this week after reviewing recent developments from their parent company's 2018 audited financial statements.

Cheers,
Doug

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