Interest rate changes | Oaken Financial | Discussion forum

Loonie said
They normally give us a week's notice. This is only 3 days - effectively two. Are they in crisis?  

I think that'd be a huge leap to make. I suspect, given the volatility in the bond markets and the frequency of central bank policy actions, they simply cannot afford to give one week rate change notices. A lot of financial institutions, much larger than Home Trust Company, don't give any advance notice.

At any rate, with Bank of Canada's purchase action in the Canadian fixed income markets to the tune of $5-10 billion per week ($5 billion in just federal government securities; they're pumping billions more into the financial system), the liquidity concerns on the secondary market for bonds has abated to a fairly significant degree. So, as I predicted, the GIC rate declines will resume in a more moderated fashion.

Barring another market shock, which is definitely possible, I expect GIC rates to trend downward over the next 2+ years, in tandem with further HISA rate declines. There's a good chance of another liquidity event, which could see GIC rates spike up in the short term, so you will have to be nimble to take advantage of those. Rate change notices and rate holds will either evaporate or shorten.

Cheers,
Doug

Please note that effective Tuesday, April 21, 2020 we will be decreasing the interest rates for all our long-term GICs (registered and non-registered) as follows:

Long-term GICs
• 1 Year GIC – 2.35% (currently 2.50%)
• 18 Month GIC – 2.40% (currently 2.60%)
• 2 Year GIC – 2.40% (currently 2.65%)
• 3 Year GIC – 2.40% (currently 2.65%)
• 4 Year GIC – 2.40% (currently 2.65%)
• 5 Year GIC – 2.50% (currently 2.65%)

All other Oaken rates will remain unchanged.

Loonie said

Please note that effective Tuesday, April 21, 2020 we will be decreasing the interest rates for all our long-term GICs (registered and non-registered) as follows:

Long-term GICs
• 1 Year GIC – 2.35% (currently 2.50%)
• 18 Month GIC – 2.40% (currently 2.60%)
• 2 Year GIC – 2.40% (currently 2.65%)
• 3 Year GIC – 2.40% (currently 2.65%)
• 4 Year GIC – 2.40% (currently 2.65%)
• 5 Year GIC – 2.50% (currently 2.65%)

All other Oaken rates will remain unchanged.  

Yup ... I got that ⬆ same email this morning.

I have very little in my Oaken SA right now, but I'd like to get in on their 18 Month GIC before the 21st.

Does anyone know if Oaken will accept a cheque in the mail, and how soon do they have to receive it ❓

Thanks for the help,

Dean

Dean call them about the cheque. I usually feed them money from my Accelerate account. Ie I pull $5000 from Accelerate and then do a GIC online at Oaken and in the notes I say I have say I have pulled the money in.....which they can see as well. I asked about holding a rate and they said to do GIC first then send money. And now I am thinking...the online entry asks how you are funding....just don’t remember if one says cheque. I was also told if the timing caused me a lower rate than what I was applying for....to call them.

Dean said
...
Does anyone know if Oaken will accept a cheque in the mail, and how soon do they have to receive it ❓
...

Yes, mail in is one of the 4 ways with Oaken. On the downloaded mail-in form, it is written rate is good for 5 business days.

... I would apply online first to get a reference point, then send cheque by mail.

Loonie said
I am aware that in some areas mail delivery is not up to usual speed right now. I'm not sure if this is supposed to be related to Covid or not, just that mail is not getting through. Should be OK in the cities, but who knows these days?  

Yes if I was Dean, I would courier or see how quickly he can set up a new push/pull at Oaken. Also couriers, are very busy too with increased on line purchases AND some are doing grocery Delivery too.

I don’t get much mail as most bills and statements are online. But I couldn’t tell you when it was when I received mail on a THURSDAY. I am convinced we only have 4 day delivery here.

As Canadians, we got totally hosed with the community box delivery. I now wonder if the postal union has a pandemic clause in their contract because we haven’t had delivery for days at a time for the past weeks.

Also I did find somewhere if they miss mailing for 2 days, Canada Post has to post it online.

Has any one here tried prescription drug delivery from Costco? Do they leave it in the community box or is a signature required?

Thanks londonguy

That was 2 of my concerns.
1. Non delivery. Means no drugs and a hassle to have them refilled and delivered at zero cost. And the counter that deducts from your eligibility to have them filled for 360 days worth.
2. Having to be home to accept delivery on a normal day. And then there is the lazy fill in or a contractor without the digital device that just delivers into your box, the notification to pick up at their pick up site. That defeats any savings to drive somewhere to get them.

We usually hit Costco once every 4-5 weeks so we often reorder when we have two weeks left and just combine the pick up with our grocery shopping. We have only been out once in the past 2 months. We went to Costco and 2 Save-on foods. Costco has fantastic control and stock and Save-on did not.

Thanks for sharing your experience.

Dean said

Yup ... I got that ⬆ same email this morning.

I have very little in my Oaken SA right now, but I'd like to get in on their 18 Month GIC before the 21st.

Does anyone know if Oaken will accept a cheque in the mail, and how soon do they have to receive it ❓

Thanks for the help,

Dean  

Well ... I applied on-line yesterday for that 18 month GIC, but I was only given two (2) options for payment:

- From my Oaken SA (which is almost empty)
- A cheque in the mail (which I sent yesterday by registered mail).

I was told at the post office that because of the present situation (pandemic), my cheque might not get to Oaken in time (5 business days, or less).

Fingers crossed

GICinvestor said

I was told at the post office that because of the present situation (pandemic), my cheque might not get to Oaken in time (5 business days, or less).
Fingers crossed sf-confused

Dean:
Your application has the current rate embedded into it. I did similar with Oaken years ago. They led me to believe my application would be honoured and suggested if not that if I called they would adjust in my favour.

Also years ago I was chasing rates and I had a pension thing to take care of. I used Canada Post registered mail at $15 each for a letter envelope. The work one to Montreal tracking said it it had wrong address and was undeliverable and the other to Oaken had not yet arrived.

I called for my work one as I had a per addressed envelope for the Montreal destination.....call confirmed they had received it.

I then called Oaken and they gave me the time it arrived on the 24th floor and what time it left them to move to the 25th floor.

A $30 needless head ache.

The next time I used Purolater (owned by Canada post and on same plane as Canada Post) and arrived amazingly one time within their promised number of days in transit. My Hubert one arrived in Selkirk at 9am. I have driven from Winnipeg to Lockport along the along the Red River just short of Selkirk. I was amazed that it was delivered so early. Cost from Purolater was similar. So no more expensive and unreliable Canada Post.  

Just FYI...Dean is based in the Selkirk mountains of British Columbia, not Selkirk, Manitoba, as I'm assuming that's why you referenced the Selkirk—Winnipeg drive and mailing times? I want to say he's in Nelson, or Trail. I get he and toto's location mixed up all the time as I know they both live nearby.

Also, when mailing personal cheques for GICs, do you use registered mail, Xpresspost, or regular mail? I just send them regular mail for ~$1.08 (tax incl.) or so. When my parents mailed a cheque to deposit to Hubert (since they don't have mobile deposit yet :(), it took ~5 business days via regular postal mail from West Kelowna, British Columbia, to Selkirk, Manitoba. 1 day to Vancouver, 2-3 days to Winnipeg, and 1-2 days to Selkirk. There was a weekend and a statutory holiday in there, I think, so it netted out at 7-8 calendar days.

Cheers,
Doug