Oaken GIC rates going up | Oaken Financial | Discussion forum

With rates expected to be rising, I would want to choose monthly (or annual) payout of interest rather than accumulation in a term deposit (GIC). I haven't established whether that's available at Oaken, but in general this allows full interest earning in the early part of the term (when it's most advantageous over other market rates) but would not lock that interest in the term to its end. I would prefer the paid-out interest be available for me to invest at higher future prevailing rates.

If rates are expected to fall, I always opt to keep interest in the term.
RetirEd

Loonie said
I switched to annual payout with the GICs I bought this year, and the main reason was because I think rates will rise. Another reason is to simplify bookkeeping as I can keep the principal stable at a round number. For many people, it's important to have the yearly income in hand for spending and for paying the income tax on the interest.

My ladder is working the way it's supposed to.  

Nothing more comforting to us conservative investors than a properly functioning ladder!

Options, Options, Options. Each person has different priorities. I started my 5 year ladder 3 years ago I purchased 1-5 year term. I compounded interest to maturity. At maturity i purchased 5 year term and added a bit more principle to keep an even number with 3 0's. . Works well for declining rates. With rates rising I plan to keep the strategy. I do not know how long it will take for rates to cross.

Please note that effective Friday, November 26, 2021, we will be increasing the interest rates for the Oaken Savings account, short-term, long-term and Cashable GICs as noted below:

Short-term GICs:
• 30 Days GIC – 1.30% (currently 1.25%)
• 60 Days GIC – 1.30% (currently 1.25%)
• 90 Days GIC – 1.35% (currently 1.30%)
• 120 Days GIC – 1.35% (currently 1.30%)
• 180 Days GIC – 1.35% (currently 1.30%)
Long-term GICs:
• 1 Year GIC – 1.80% (currently 1.65%)
• 18 Months GIC – 1.90% (currently 1.75%)
• 2 Years GIC – 2.00% (currently 1.85%)
• 3 Years GIC – 2.30% (currently 2.00%)
• 4 Years GIC – 2.40% (currently 2.15%)
• 5 Years GIC – 2.60% (currently 2.50%)
Cashable GICs:
• 1 Year Cashable after 30 Days – 1.30% (currently 0.50%)
• 1 Year Cashable after 90 Days – 1.35% (currently 0.50%)
Oaken Savings Account - 1.25% (currently 1.20%)

Please note that effective Monday, December 20, 2021, we will be increasing the interest rates for the short-term and long-term GICs as noted below:

Short-term GICs:
90 Days GIC – 1.40% (currently 1.35%)
120 Days GIC – 1.45% (currently 1.35%)
180 Days GIC – 1.45% (currently 1.35%)
270 Days GIC – 1.45% (currently 1.35%)

Long-term GICs:
1 Year GIC – 1.90% (currently 1.80%)
18 Months GIC – 2.00% (currently 1.90%)
2 Years GIC – 2.10% (currently 2.00%)
3 Years GIC – 2.40% (currently 2.30%)
4 Years GIC – 2.50% (currently 2.40%)
5 Years GIC – 2.70% (currently 2.60%)

These new rates will be applied automatically for all corresponding GICs booked on December 13, 2021, or later. All other Oaken rates will remain unchanged.

Agreed, going for the one year, 1,9%.
Rates have to rise more, soon…No?