2025 TFSA options | Page 3 | Tax Free Savings Accounts | Discussion forum

RetirEd said
Oaken is offering 3% in TFSA savings but there's no guarantee it wouldn't fall. Or rise, for that matter.

Oaken's TFSA rate is currently 3.4%, their savings is at 3%.

RetirEd said
Oaken does not have fractional-year GICs under TFSA contracts.

You could pick their 2-year 3.95% GIC and set the maturity date to say December 2027 and effectively create your own fractional-year GIC. Have the matured GIC pay out to a non-registered account for withdrawal, if desired.

Retired - I'm used to the term fractional referring to non-whole years, including greater than 1. I agree that Oaken doesn't do fractional <1 year but they will for 1+ years.

I've done fractional years for TFSA GICs over 1 year. Now, I did it online. But if the capability extends to their web site, I don't see why they couldn't do over the phone or in person.

You did refer to their 2-year GIC rate, so I thought having a December maturity with it might be of use for withdrawal at maturity (or getting into a December maturity cycle).

Wrayzor said
Retired - I'm used to the term fractional referring to non-whole years, including greater than 1. I agree that Oaken doesn't do fractional <1 year but they will for 1+ years.

I've done fractional years for TFSA GICs over 1 year. Now, I did it online. But if the capability extends to their web site, I don't see why they couldn't do over the phone or in person.

You did refer to their 2-year GIC rate, so I thought having a December maturity with it might be of use for withdrawal at maturity (or getting into a December maturity cycle).  

I think that you may be onto something, here. I just did a test set-up/purchase transaction for a GIC. I selected the 2-yr option starting Mar 3, 2025. However, I selected the Maturity Date of 31, Dec, 2027 and it was accepted! I did not complete the purchase, but I saw the details on the 'Review and Submit' screen and think that it might actually go through.

Alas, I just bought a TFSA and wish I had known about this possible loop-hole before finalizing the transaction.

Update: I called Oaken and was told that the portal may accept the request for odd maturity date, but their back office would catch the discrepancy and not issue the GIC under those terms, because they do not exist. Instead, they might issue the 2-yr GIC for 3.95% but then revert to a short-term GIC 2.7% for the remaining days between Mar 3 2027 and Dec 31 2027. Most likely, the back-office would contact the client to ask if they wanted a 2- or 3-yr instrument.

In short, this work-around would most likely not work.

Thanks, all, for at least making me less sure about the situation of fractonal TFSA terms. I will talk to them. I'd like to take the 2-year to end when I can consolidate it with my other early-January TFSA GICs. Currently it ends mid-February.

Fractional periods do exist at Motive. There have been member reports of buying a 24-mo GIC and then selecting the maturity date of 35-mo and still getting the 24-mo rate.

HermanH said
Fractional periods do exist at Motive. There have been member reports of buying a 24-mo GIC and then selecting the maturity date of 35-mo and still getting the 24-mo rate.  

You have to call in to take advantage of fractional periods at Motive. This cannot be done online.

Wrayzor said
I've had separate FI CSRs (not Oaken) give different answers to the same question on multiple occasions. Maybe you can get the opposite answer that HermanH received from another rep.  

Called into Oaken and got some more info. CSR Annie said she has personally seen a GIC that show a fractional maturity date (14 months) and that they are aware of the glitch and were talking about it with their back-office last month. Because they are aware of it, they will supposedly not allow the fractional date in the future and that they would go in and either re-set the date to their standard offer period or else contact the client. So, it looks like they will honour it if you already have it, but won't allow it in the future.