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Email this7:50 am
April 7, 2017
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As part of our commitment to making customers the first to know about our rate changes, please note that effective today (Tuesday, May 16, 2017), we have increased our interest rates for the following terms:
1 Year GIC – 2.35% (previously 2.10%)
18 Month GIC – 2.45% (previously 2.20%)
2 Year GIC – 2.55% (previously 2.30%)
3 Year GIC – 2.65% (previously 2.40%)
4 Year GIC – 2.75% (previously 2.50%)
5 Year GIC – 2.85% (previously 2.60%)
1:41 pm
May 28, 2013
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Someone enlighten me please. Oaken is funded by two entities who are in the news because they're operations are being questioned, share price has plummeted and deposits at Oaken have been withdrawn at a record pace BUT it would appear it's business as usual.
I'm already over my CDIC limit with Oaken, some of my laddered GICs have 4+ years before they mature and they are locked.
I'm scratching my head.
2:36 pm
April 22, 2017
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ValueTime said
Someone enlighten me please. Oaken is funded by two entities who are in the news because they're operations are being questioned, share price has plummeted and deposits at Oaken have been withdrawn at a record pace BUT it would appear it's business as usual.
I'm already over my CDIC limit with Oaken, some of my laddered GICs have 4+ years before they mature and they are locked.
I'm scratching my head.
The company, Home Capital, is facing a liquidity issue sparked by a panic that first began after the OSC issued a statement of allegations that the company did not properly disclose its suspension of 45 mortgage brokers from 2014-2015. It should be noted that the mortgages originated from these brokers have largely run off by now and that no credit issues have been found as the problem mortgages represented a very small proportion of those originated by the suspended brokers. Nonetheless, the formal allegations about disclosure started a run on the bank which accelerated when the company was forced to secure a costly line of credit within a very short time window.
As for your GICs, do you have the GICs with both Home Bank and Home Trust? Both are eligible for CDIC coverage. Oaken is just a brand.
2:43 pm
May 16, 2017
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We have several accounts with Oaken and Home Bank. We were over the insurance limit so they were good in transferring the money to another institution. It did take some time but I do realize they were very busy two weeks ago. Everything went as it should and we are planning now to put some money back into GIC's as their rates are very attractive. Just making sure we stay in the CDIC coverage for now.
3:57 pm
May 28, 2013
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Frank,
Thanks for the reply and details. I have $100K with Home Bank and $200K with Home Trust (or vice-versa I don't remember but I have in my records.) I think for now I'll keep the bulk of funds with Hubert - Manitoba has a higher ceiling (100%) for insurance.
Paul
4:15 pm
April 22, 2017
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ValueTime said
Frank,
Thanks for the reply and details. I have $100K with Home Bank and $200K with Home Trust (or vice-versa I don't remember but I have in my records.) I think for now I'll keep the bulk of funds with Hubert - Manitoba has a higher ceiling (100%) for insurance.
Paul
Yes, I would not be worried even if your GICs were above $100k as the company has a lot of excess capital.
5:50 pm
February 24, 2015
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frank87 said
Yes, I would not be worried even if your GICs were above $100k as the company has a lot of excess capital.
On the other hand, if some were in savings or cashable GICs, it would be prudent to reduce those so your total was under $100K in each entity.
7:50 pm
October 21, 2013
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I'm not sure how much ValueTime knows about CDIC coverage. Perhaps well informed. However, it's worth remembering that the coverage is applied separately not just to the two halves of Oaken but also to non-registered, RSP, TFSA, joint accounts etc. Depending on how your money is distributed, you can get quite a lot of coverage.
8:59 pm
May 16, 2017
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The CDIC website also has a handy calculator that allows you to enter each of your accounts (e.g. Your GICs) for each institution (e.g. Homebank) and see exactly what is insured.
It could put your mind at ease if you are unsure. You get confirmation directly from CDIC.
I for one hope Homebank and Oaken recover from this. They have been nice to deal with. Quick email response. Simple, working website that makes it easy to push and pull money.
With their new rates I am looking to maybe add another GIC.
8:13 am
May 28, 2013
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Thanks for all the replies everyone. I have sent an email to "Support at Oaken" and asked them if it is possible to change the name of ownership of $100K of GICs from just my name to my name plus my wife's name. I'll let you know if I am successful and then I have solved the CDIC limit issue.
Thanks again,
4:04 pm
October 21, 2013
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I hope this works for you, ValueTime. Really, it's in everyone's interests for them to cooperate, if they can.
6:03 pm
May 28, 2013
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Loonie, Wes, Kees, Frank et al,
I received a reply ...
From Oaken Customer Care Specialist: "Yes you can request to add a joint holder to existing non-registered GICs with Oaken.
If the person to be added currently holds non-registered accounts with Oaken, they can be added by providing a letter of direction signed by each of you. If they are not currently a client they will need to go through our onboarding process, in addition to the letter of direction."
Thanks all for your input and I hope this helps others,
Paul
6:12 pm
October 21, 2013
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that's terrific news, Paul. Definitely should be helpful to others in the same predicament - and no doubt a relief to you.
6:44 pm
May 28, 2013
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Kees,
Thanks for the tip to check out CDIC website. From the calculations I learned I could ...
Home Bank GICs: $100K me + $100K wife + $100k joint + the same at Home Trust which equals $600K all covered by CDIC
Now all I need to do is go out into my back yard and harvest my money tree .
Paul
9:09 pm
October 21, 2013
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Shake that money tree real hard and you could get another 400K covered in your RSPs or RIFs, and probably all of your TFSAs as few people would have over 200K in them yet.
11:42 am
May 20, 2016
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As part of our commitment to making customers the first to know about our rate changes, please note that effective Tuesday, May 23, 2017, we will be increasing our interest rates for the following terms:
Long-term GICs
1 Year GIC – 2.60% (currently 2.35%)
18 Month GIC – 2.70% (currently 2.45%)
2 Year GIC – 2.80% (currently 2.55%)
3 Year GIC – 2.90% (currently 2.65%)
4 Year GIC – 3.00% (currently 2.75%)
5 Year GIC – 3.10% (currently 2.85%)
2:00 pm
May 28, 2013
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The wheels are in motion to add my wife to $100K of GICs with Home Bank @ Oaken. I had to add my wife to the account by filling out a new account application. Additionally Oaken wanted a copy of our joint account which I did by sending last month's bank statement - RBC - which showed both our names. Will try and let everyone know when the process is complete. I also sent copy of Oaken statement showing $200K under me and instructed them to make $100K with Home Bank joint.
Going forward I'll decide whether to add another $400K being careful to split out to me, wife & joint ... I like the 1yr 2.60% GIC
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