Oaken Continues To Slowly Raise Its Rates | Page 3 | Oaken Financial | Discussion forum

Please note that effective Friday, March 4, 2022, we will be increasing the interest rate for the long-term GICs as noted below:

Long-term GICs:

18 Months GIC – 2.50% (currently 2.30%)
2 Years GIC – 2.60% (currently 2.50%)
3 Years GIC – 2.90% (currently 2.70%)
5 Years GIC – 3.05% (currently 2.85%)
These new rates will be applied automatically for all corresponding GICs booked on Friday, February 25, 2022 or later. All other Oaken rates will remain unchanged.

With 1 year GIC rates 2.25% at Tangerine and 2.20% at Peoples (as well as significantly higher rates available through brokers/agents), it's time for Oaken to raise their 1 year rate from 2.15%!

3 yr is a whooping 0.5%

… but all I care to see is 2 yr above 3% or another increase in HISA

Thank you, cgouimet, that 3 year rate is just what I was looking for!

The three year rate is enticing! But I have to agree with Dean. I think by next year we'll look back at the these rates and have a laugh. Pundits and central banks are clearly telegraphing MUCH higher interest rates coming. I wouldn't be surprised to see Canada bump by .5 percent at the upcoming meeting in April, and in the US, Jerome Powell has implied that will be the case at the Fed's next meeting. So it's not just desirable to have higher GIC locked in rates for me, but also it's becoming a necessity as the implications of out-of-control inflation are only just starting to become clear.

Noticed on CIBC Investor Edge, a few other names (LB, ICICI, EQ) are also offering 3%+ for the 3y term. Range is 3.05-3.1%, which is consistent with brokerage taking 25+ bps compare to direct from issuer.
However the rate is good for registered account as well, which works for me esp for the self directed RRSP. Hard to find any decent cash instrument to be part of the fixed income portion and GIC like this fits the gap.

Even tho I truly believe rates will be higher few months down the road, earning 3%+ until then is better than earning 0 and wait...

cgouimet said
Agree with Dean and Island ... Staying short for now.  

Yep. As I feared may happen when those ridiculously high inflation numbers were released near the end of 2021, the 2.5%, 3yr term GIC I took out last September is not looking so good anymore.

Canadianbull said
Is it easy to open online account with oaken?  

I just started the process of opening an Oaken account.
1. Fri Mar 25 - fill out online application. Scan cheque payable to myself for $1.00 and email it to Oaken.
2. Mon Mar 28 receive email from Oaken requesting clarification that they can electronicially deposit the cheque. They also request a fax, photocopy or scan of a document showing same name and address as on application ie tax notice, utility bill, property tax, etc. Sent document requested by email Mar 28.

will update as things progress

Oaken just raised its 3-year GIC to 3.4%. I bit and moved my ISA cash there into the 3-year. (Non-registered) We're starting to see two trends in GICs:

1. Even the big banks are offering tempting longer rates to discourage depositors from waiting for higher rates. That way, money isn't sitting in savings accounts or short-term GICs and the banks don't have uncertainly about the cash running to other financial institutions.

2. We're getting early signs of an inverted yield curve (with the longest terms dropping behind those a year or two shorter. This usually indicates institutional fears of en economic downturn or recession a couple of years out.

Anyway, the 3.4% 3-year was a good catch, I already have Oaken set up with cash in it, and they set it up on the phone with printed mail confirmation to come. I'm in.
RetirEd

Please note that effective Monday, April 11, 2022, we will be increasing the interest rate for the long-term GICs as noted below:
• Short-Term GICs:
• 90 days – 1.65% (currently 1.45%)
• 120 days – 1.70% (currently 1.50%)
• 180 days – 1.75 (currently 1.50%)
• 270 days – 1.75 (currently 1.50%)
• Long-term GICs:
• 1 Year GIC – 2.60% (currently 2.25%)
• 18 Months GIC – 2.85% (currently 2.70%)
• 2 Years GIC – 3.30% (currently 2.95%)
• 3 Years GIC – 3.70% (currently 3.40%)
• 4 Years GIC – 3.65% (currently 3.15%)
• 5 Years GIC – 3.70% (currently 3.20%)
These new rates will be applied automatically for all corresponding GICs booked on Monday, April 4, 2022 or later. All other Oaken rates will remain unchanged.