Personal Finance

Oaken Financial interest rates going "back to normal"

  • Last Updated:
  • Sep 17th, 2017 10:46 am
Member
Jul 17, 2011
285 posts
129 upvotes
TORONTO

Oaken Financial interest rates going "back to normal"

Just received this: "We wanted you to be the first to know that effective Monday, September 18, 2017, we will be returning our interest rates back to normal levels. Our GIC rates will still continue to be among the highest available. Our new rates are below. Our existing rates will apply to all investments received prior to close of business on Friday, September 15, 2017 for terms commencing prior to September 18, 2017.

Long-term GICs (registered and non-registered)

• 1 Year GIC – 1.90% (currently 2.50%)
• 18 Month GIC – 2.00% (currently 2.60%)
• 2 Year GIC – 2.25% (currently 2.70%)
• 3 Year GIC – 2.45% (currently 2.80%)
• 4 Year GIC – 2.50% (currently 2.90%)
• 5 Year GIC – 2.75% (currently 3.00%)


Short-term GICs

• 30-59 Days – 1.60% (currently 2.00%)
• 60-89 Days – 1.60% (currently 2.00%)
• 90-119 Days – 1.60% (currently 2.10%)
• 120-179 Days – 1.70% (currently 2.15%)
• 180-269 Days – 1.75% (currently 2.30%)
• 270-364 Days – 1.80% (currently 2.40%)


1 Year Cashable GICs

• After 30 Days – 1.50% (currently 1.75%)
• After 90 Days – 1.60% (currently 1.85%)

Oaken Savings Account

• 1.50% (currently 1.75%)"
8 replies
Deal Fanatic
Oct 7, 2007
9404 posts
5374 upvotes
While this isn't great for Oaken customers, I take this as a good sign that have achieved some level of stability and normalcy.
Deal Addict
Jan 23, 2006
3097 posts
2399 upvotes
What pisses me off is that banks/lenders are raising the rates on loans, but not on saving.

I think it's time for some government body to probe into this bs...
iamalittlepepper wrote: Non of the Royal Purple is BMW qualified which voids your drivetrain warranty.. especially for those who owns the 3.0L N54 engine
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Member
Mar 16, 2011
422 posts
210 upvotes
So the BOC increases it's prime rate and the banks are going the opposite direction, which increases their profit margins. Yeah, pretty much as expected. ha ha
Deal Fanatic
User avatar
Sep 23, 2009
7082 posts
5209 upvotes
djredhat wrote: What pisses me off is that banks/lenders are raising the rates on loans, but not on saving.

I think it's time for some government body to probe into this bs...
The banks may not think that the economy has improved for the long-term. Of course, this makes sense as the Canadian economy is seasonally stronger in the summer months.

In other words, perhaps they shouldn't have raised rates due to the strong economy when it is attributable more to seasonality than actually witnessing structural economic growth.

I think they have mainly raised rates so that they have a tool in the future when the economy weakens
Newbie
User avatar
Aug 22, 2014
43 posts
15 upvotes
Rideau Ferry
voodoo22 wrote: I think they have mainly raised rates to increase their profits.
Well Bank of Canada has raised the interest rate so the funding cost for the banks have increased, they need to raise it to at least keeping the current profit level.
Deal Fanatic
Oct 7, 2007
9404 posts
5374 upvotes
I believe the central banks were previously colluding to keep raise interest rates low for the longest time and they all seemed to "coincidentally" keep them low.

Now, I have heard from one of the financial pundits, that central banks want to normalize interest rates in the rate of 4-5%. I don't know if our guy is following what the central banks want but so far this may be the case.

I suppose in the end Canada has always fallen the U.S.'s lead so if the U.S. continues to raise their interest rates, we know where ours are going. I know Trump also wanted to normalize interest rates but I also realize that he does not technically have influence over the Federal Reserve so this may be a moot point.

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