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Email this1:41 pm
September 11, 2013
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Obviously they're not as sure about that as they were in January, they say the war has injected new uncertainty, they say the pandemic recovery is fast and sharp and that demand is going to continue to be strong, there are labour shortages, and they say "inflation is too high. It is higher than we expected, and it’s going to be elevated for longer than we previously thought" They also say inflation hits marginalized folks more (duh) so they're trying to curb the excessive inflation rate asap for those people, is my sense, plus they want labour to moderate its wage demands, i.e. not base them on current rates of inflation. So as usual they say lots of things, nothing anyone can really object to, and of course they will revise their opinions if things change again in unanticipated ways in the next two months or so.
7:05 am
November 8, 2021
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Seems to me the folks at BoC lack good financial analysts...
Not comparing same tenure times, Mark Carney was phenomenal at planning, analyzing, and executing monetary policy compared to those in office nowadays.
7:27 am
April 18, 2022
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BlueSky said
Seems to me the folks at BoC lack good financial analysts...
Not comparing same tenure times, Mark Carney was phenomenal at planning, analyzing, and executing monetary policy compared to those in office nowadays.
Mark Carney aka "Mr. Bubbles" founder of the real estate bubble. Poloz let it run then Tiff. There's no point to the Bank of Canada if all they do is take orders from the government of the day.
9:26 am
February 14, 2014
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I'm surprised to find out (from a phone call to Oaken) that they have a limit of 2 GICs being set up using the online access, but if you phone them they'll give you six. EQ and Tangerine allow 20.
Does anybody know otherwise about Oaken?
9:57 am
February 7, 2019
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RicksBank said
I'm surprised to find out (from a phone call to Oaken) that they have a limit of 2 GICs being set up using the online access, but if you phone them they'll give you six. EQ and Tangerine allow 20.Does anybody know otherwise about Oaken?
Really? 2 at any given time?
| CGO |
10:02 am
February 14, 2014
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We were told that in order to set up a 5-year ladder, we have to call them. I find it hard to believe!
10:02 am
February 7, 2019
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cgouimet said
Really? 2 at any given time?
I just went on a Chat online and asked "Is it true that you have a limit of 2 GIC's per client?". The reply was "Not true. You can have as many GICs as you would like."
And I will be testing that next week ...
| CGO |
10:16 am
October 21, 2013
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Sorry, I can't help. I've only dealt with them in person.
10:58 am
March 30, 2017
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I have had 2 for each issuer name and able to do everything online. Does not make sense they arbitrarily pick 2 as a limit in my mind.
If the rep meant 2 total under Oaken brand, then I can confirm NOT true.
12:22 pm
February 14, 2014
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cgouimet said
I just went on a Chat online and asked "Is it true that you have a limit of 2 GIC's per client?". The reply was "Not true. You can have as many GICs as you would like."
And I will be testing that next week ...
There are 2 issues. One is how many GICs you can buy yourself using online access, and if limited to 2, how many more can you get if you have phone them. Since my wife mentioned a GIC ladder, the agent said they would give 6 if we phoned. It occurs to me now that the number "6" mentioned by the agent could just be directly addressing the requirement for a ladder and not neccesarily a hard limit.
6:06 pm
November 18, 2017
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cgouimet: Just to be clear, the limit of two GICs was for SETTING THEM UP ON LINE. I don't think anyone here has asked them if one could add extra GICs on line later on, like a year or two later.
RetirEd
RetirEd
8:06 am
February 7, 2019
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RetirEd said
cgouimet: Just to be clear, the limit of two GICs was for SETTING THEM UP ON LINE. I don't think anyone here has asked them if one could add extra GICs on line later on, like a year or two later.
RetirEd
So, I chatted again 2 minutes ago with Oaken ...
Q: How many GIC's can I set up?
A: As many as you would like.
Q: I can do that all online at any time on my own?
A: Correct. Online, phone or by mail.
And, as I wrote yesterday, I'll be testing that Sunday or Monday and I'll report back ...
| CGO |
9:59 am
February 14, 2014
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cgouimet said
So, I chatted again 2 minutes ago with Oaken ...
...
And, as I wrote yesterday, I'll be testing that Sunday or Monday and I'll report back ...
Thanks cgouimet, looking forward to hearing your results. Piecing together various comments, it may simply be that when you add a new GIC, you can add 2 after filling out a bunch of information that they already know, and to add more you have to start over and fill in the personal info yet again?
3:30 am
February 7, 2019
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RicksBank said
Thanks cgouimet, looking forward to hearing your results. Piecing together various comments, it may simply be that when you add a new GIC, you can add 2 after filling out a bunch of information that they already know, and to add more you have to start over and fill in the personal info yet again?
So, I set out to start 3 small Oaken GIC's this morning: 12/18/24-Mo "ladder".
The online application process is different than other FI's I've used in that it's not done from within your account loggin. You need to manually enter your credentials (name and client number), my wife's credentials for joint ownership and the account number from which to source the funds and the account number(s) to redeem the interest and principal.
The application to buy a GIC allows for a second GIC, which I did. Then 5 minutes later I received an email confirming 2 GIC's with tomorrow as the issue date; the date is Oaken's choice, not mine.
Then I proceeded to apply again. That second application also allowed for two GIC's but I just did one. All credentials and all account numbers manually again. Then another email confirming 1 GIC with tomorrow as the issue date.
The confirmation emails also mentioned that the confirmations will be mailed to my address on file within five business days. Presummably, in typical Oaken, via Canada Post.
The three GIC's do not appear on my Account Summary yet and the funds are still in the source Oaken Savings Account. The GIC's 'should' appear tomorrow since that's the 'issue date'. For me to check ...
| CGO |
9:42 am
April 30, 2022
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Can someone (or many someones) please help me understand the thinking behind making 3 and 5-year GIC rates very similar?
I mean, from the FI's perspective, what is the objective?
Are they doing this because they want to nudge customers who would normally lock in at 5-years (to get the best available rate) to go with 3-years instead?
Or, are they doing this because they figure unless they offer relatively high 3-year rates, right now enough people simply won't buy long-term GICs -- and so they are trying to nudge the HISA and 1-2 year GIC people into a 3-year contract (which would ideally be 5-year but the FI doesn't believe that any rate will convince short-term investors to go beyond 3 years at this time).
tl;dr: I'm curious of the FI motive for making 3 and 5-year GIC rates (and throw in 4 year GIC rates as well) so similar/identical. What are they trying to nudge us into doing?
10:55 am
January 13, 2022
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My take on it is based on what I've read from what I believe are reputable sources of information. The current thinking is that skyrocketing inflation requires higher interest rates immediately...but the longer term result of this will be a recession within the next one to three years. If that comes to pass, it's more likely that governments/central banks will have no choice but to lower interest rates back down to ridiculous levels in order to attempt to stimulate more growth and pull economies out of recession. So to me, it seems like FIs are implying that they see higher interest rates as a shorter term cycle, and will be back down to giving away money quite quickly. Thus, no reward for longer terms like five years. And I think a lot of people would jump at longer terms if there was a better reward.
11:05 am
September 11, 2013
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Could be why, lots of possible reasons. Might be as simple as the financial institution just needs, or wants to lessen, some money with those maturities, or maybe this week they need 3 year maturities more than 5 year ones, or maybe just a rebalancing is needed of their maturities going forward. The "why" is not usually of interest to me, but if you're really interested you can try asking them.
11:08 am
February 14, 2014
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Bill & lifeonanisland, Reading between your lines, I'm not sure if you'd go for a 3 year or 5 year if you were getting a GIC right now?
11:26 am
April 30, 2022
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The "why" is not usually of interest to me, but if you're really interested you can try asking them.
The why in this case interests me (no pun intended), because it sheds some light on what FIs anticipate in the next few years.
I tend to agree with lifeonanisland, which is that ultimately FIs are trying to push 5-year GIC people towards 3-year (and even shorter) terms vs. trying to push HISA/1-2 year GIC people towards 3-year terms (because they simply won't go longer at this point).
Thanks for your response Bill. I'd be interested to hear what others think as well. I've been investing in GICs for about a decade and I can't recall a time when so many FIs were offering very similar 3/4/5 year rates. Occasionally I've seen one FI do it for a short period of time. But right now there are several, and it's just...well, it's just weird to me.
Weird good? Weird bad? Weird weird?
11:36 am
January 13, 2022
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RicksBank said
Bill & lifeonanisland, Reading between your lines, I'm not sure if you'd go for a 3 year or 5 year if you were getting a GIC right now?
For me, I'm shuffling around money like crazy right now, just trying to keep everything short term, with 2 to 3 percent yields. I think there will be a window of opportunity some time within the next year to lock in an interesting ladder from 3 to 7 years (EQ offers these longer terms, for example) with 5 to 7 percent returns depending on just how difficult it is to reign in inflation for our central banks. So while many don't seem to be interested in five year terms, I really am. I am entirely suspicious of politicians and central banks and suspect that, if they think they can get away with it, they'll switch back to cheap money at the first opportunity they get, to keep the debt party rolling. Caveat: crystal ball is out of batteries.
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