Personal Finance

Oaken to raise GIC rates (e.g. to 3.25% for 5-years)

  • Last Updated:
  • Feb 14th, 2018 8:26 am
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[OP]
Deal Guru
Jan 7, 2002
13071 posts
5474 upvotes
Waterloo, ON

Oaken to raise GIC rates (e.g. to 3.25% for 5-years)

See newer rates downthread.

From an e-mail:

Please note that effective today, Wednesday, January 10, 2018, we have increased the interest rates for all our long-term GICs (registered and non-registered):
• 1 Year GIC – 2.25% (previously 2.00%)
• 18 Month GIC – 2.50% (previously 2.25%)
• 2 Year GIC – 2.60% (previously 2.35%)
• 3 Year GIC – 2.85% (previously 2.65%)
• 4 Year GIC – 3.00% ( previously 2.75%)
• 5 Year GIC – 3.15% (previously 3.00%)
These new rates will be applied automatically for all corresponding GICs booked on January 3, 2018 or later.
Last edited by bylo on Jan 10th, 2018 10:38 am, edited 1 time in total.
veni, vidi, Visa
30 replies
Deal Addict
Oct 7, 2007
3729 posts
1064 upvotes
This is hard to believe given the long, downward trajectory we have seen for almost the rememberable past.
Deal Addict
Nov 28, 2013
1100 posts
338 upvotes
London, ON
choclover wrote:
Jan 10th, 2018 1:27 pm
This is hard to believe given the long, downward trajectory we have seen for almost the rememberable past.
I believe things have improved other there.

keep it under 100K and you'll be fine.
Deal Addict
User avatar
Jan 4, 2009
3548 posts
916 upvotes
on the links
choclover wrote:
Jan 10th, 2018 1:27 pm
This is hard to believe
Actually, it's not that difficult to believe. The BoC rate will likely rise by 25 bps next week...the question is who else will raise deposit rates?
Deal Addict
User avatar
Jan 4, 2009
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on the links
Their rates have been bumped again, effective today...

• 1 Year GIC – 2.50% (previously 2.25%)
• 18 Month GIC – 2.75% (previously 2.50%)
• 2 Year GIC – 2.85% (previously 2.60%)
• 3 Year GIC – 2.95% ( previously 2.85%)
• 4 Year GIC – 3.05% (previously 3.00%)
• 5 Year GIC – 3.25% (previously 3.15%)
Deal Addict
Oct 7, 2007
3729 posts
1064 upvotes
Sauerkraut wrote:
Jan 26th, 2018 8:05 am
Their rates have been bumped again, effective today...

• 1 Year GIC – 2.50% (previously 2.25%)
• 18 Month GIC – 2.75% (previously 2.50%)
• 2 Year GIC – 2.85% (previously 2.60%)
• 3 Year GIC – 2.95% ( previously 2.85%)
• 4 Year GIC – 3.05% (previously 3.00%)
• 5 Year GIC – 3.25% (previously 3.15%)
Although small these increases are such a breath of fresh air. :)
Deal Fanatic
Feb 1, 2006
9391 posts
510 upvotes
Sauerkraut wrote:
Jan 26th, 2018 8:05 am
Their rates have been bumped again, effective today...

• 1 Year GIC – 2.50% (previously 2.25%)
• 18 Month GIC – 2.75% (previously 2.50%)
• 2 Year GIC – 2.85% (previously 2.60%)
• 3 Year GIC – 2.95% ( previously 2.85%)
• 4 Year GIC – 3.05% (previously 3.00%)
• 5 Year GIC – 3.25% (previously 3.15%)
Thanks for updating! Nice to see savers finally getting ahead of inflation.
Member
Jun 10, 2013
398 posts
138 upvotes
Let's see if they get up to 4%, I haven't seen that pre-08-crisis...
I hope EQbank raises their 2.3%, no liquidity risk with that one...These mortgage banks are welcome competition in our markets. Big 5 is doing nothing despite the rate hikes (they are hiking their lending rates however).
Member
Jun 10, 2013
398 posts
138 upvotes
bylo wrote:
Jan 27th, 2018 12:55 pm
You're too young. I recall the days when bank interest rates on savings accounts were as high as 19% and even Canada Savings Bonds paid 19½%.
I've never seen those. I've only read about them through economic history (Volcker's discipline which we'll never see again). Apparently houses were only 5 figures then as well...What a time to be alive. Now homes are 7 figures and I've never personally seen an interest rate above the 4% handle on deposits. I guess when you saw 0-1% rates on deposits you knew something was really wrong...
Sr. Member
Oct 14, 2012
578 posts
292 upvotes
Woodstock
Tangerine was over 4% in 2001 and significantly over that in earlier years. And that was on a regular daily interest savings account not a GIC. https://www.tangerine.ca/en/rates/histo ... index.html

Don't forget when investment interest rates were 10-20%, mortages were *higher* than that. And house prices were in the 6 figures then too. Your entire first few years of mortgage payments only went against the interest and a few hundred dollars against the principal.

House prices were in the 5 figures when mortgages were for 25 years and did not renew, and were at 7%+ , like when my parents built/bought in 1967. And that was considered a great rate. Houses have never been as cheap as some people like to believe.

The slow climb back to more expected interest rates, like 3% on a 5-year GIC, is what will put pressure on blue chip dividend stock prices. If people can get 3.5% on a 5-year GIC with no risk of their capital (except inflation) they start to wonder whether it's worth buying a stock that yields 4% where it could drop significantly in capital value. REITs and other income trusts could also face pressure for this reason.
Deal Addict
May 17, 2012
1465 posts
576 upvotes
ontario
Hobotrader wrote:
Jan 27th, 2018 12:32 pm
Big 5 is doing nothing despite the rate hikes (they are hiking their lending rates however).
sounds like a good reason to invest in the big 5.
Deal Addict
Jun 15, 2012
1056 posts
91 upvotes
MB
100k guaranteed by CDIC?
"I will tell you how to become rich. Close the doors. Be fearful when others are greedy. Be greedy when others are fearful."
- Warren Buffett
Deal Addict
Jun 15, 2012
1056 posts
91 upvotes
MB
Guruguido wrote:
Jan 27th, 2018 10:14 pm
Max 100K
Protect Your Deposit - CDIC

http://www.cdic.ca/SiteAssets/financial ... osits.aspx
Including interest?
If I deposit 85k on 60 months
And Oaken will crash in a near term on 58th month I will get principle plus interest?
"I will tell you how to become rich. Close the doors. Be fearful when others are greedy. Be greedy when others are fearful."
- Warren Buffett

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