# Home Trust (Oaken) GIC



## gardner (Feb 13, 2014)

I'm setting up a non-registered 5y GIC ladder.

The best rates I find for 4y and 5y seem to be with "Oaken" which is Home Trust -- 3.05% 5y. Based on what TD DT shows me available, the best I could do would be a Scotia GIC at 2.55% 5y. The TD offerings are not competitive. Anything else I should be looking at?


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## gibor365 (Apr 1, 2011)

Not sure about 5 years, but for 1 - 3 years looks like Peoples Trust has the best rates, they just increased 1 year GIC to 2.2%


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## andrewf (Mar 1, 2010)

The trouble I have is with investing more than $100k with small-fry banks like PT.


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## gibor365 (Apr 1, 2011)

andrewf said:


> The trouble I have is with investing more than $100k with small-fry banks like PT.


This is why I split $$$ between several accounts, myself and my wife have joint account and each of us has individual account , also I have joint with my mom and my wife joint witn our son.... there is no one account that exceeds 100K, so all money comboned are insured under CDIC.
Just moved more than 200K from ING to PT and speaded it among 3 accounts... the difference in rates now about 0.7% , so for 200K it's additional $1,400, no too small amount


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## CanadianCapitalist (Mar 31, 2009)

BMO InvestorLine also has 5-year GICs at 2.60% (from Home Trust incidentally). 2.55% at ING Direct as well. Looks like Oaken is far and away the best rate... Never heard of them, so thanks for the post.


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## andrewf (Mar 1, 2010)

I'll have to think about it. I don't want to recommend these small banks, especially given the problems some of them have had with IT/privacy breaches. I recommended going with GICs through Questrade. It also has the convenience of not having to fill out a stack of paperwork and move money around to get good rates when they mature (since the issuing institution will probably be acquired and made uncompetitive by our friendly banking oligopoly over the term of the deposit).

It'd be really nice if CDIC was raised to $250k per person per account type like the FDIC in the US.


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## Squash500 (May 16, 2009)

I forget what thread it was? Some poster on CMF made an excellent point that HT (Oaken) is able to offer a 3.05% 5 year GIC because they don't have to pay trailer fees ( I believe at least a .25 basis point commission) to the discount brokers in order to showcase their product.

IMHO in order to buy a HT (Oaken) GIC you have to set up a separate account with HT (Oaken) in order to take advantage of that 3.05% rate.

This can be a bit unwieldy as one of the benefits of having a discount brokerage account is you can keep everything (stocks, ETFS, GICS etc) in one account.


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## gardner (Feb 13, 2014)

Squash500 said:


> This can be a bit unwieldy


Yes. With these guys I have to set up an account at HT to hold these GICs and link it to one of my real bank accounts. Awkward, but not un-doable.

I am not especially worried about the CDIC angle. I would be putting perhaps 25K-50K in the ladder, at least for now. HT may well not be the best game in town in a year or twos time.


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## gibor365 (Apr 1, 2011)

andrewf said:


> It'd be really nice if CDIC was raised to $250k per person per account type like the FDIC in the US.


For this point I'm comletely agree with you 
Actually in Peoples trust after you open 1 account, it very fast open other accounts/account types, everything is done online... The only inconvenience I noticed, they have very long holding period when transfering money in (I think 7 days), but if you call even next dday and want to buy GIC , PT will unlock $$$. 
Looking that no CDIC financial institution felt bankrupt in last 15-17 years, looks like they changed some rules , so small banks are more sustainable now


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## canucked_up (Feb 23, 2014)

andrewf said:


> I'll have to think about it. I don't want to recommend these small banks, especially given the problems some of them have had with IT/privacy breaches.


Just a quick search, and this most recent I see. http://nakedsecurity.sophos.com/201...s-up-to-data-breach-465000-customers-at-risk/ among others not so recent. Not to mention what we don't hear about.

It's not just the small banks. The bad guys will never stop trying. I'm a PT client, unfortunate incident, but I'm no more worried there than anywhere else. They handled it well in my opinion.



> I recommended going with GICs through Questrade. It also has the convenience of not having to fill out a stack of paperwork and move money around to get good rates when they mature (since the issuing institution will probably be acquired and made uncompetitive by our friendly banking oligopoly over the term of the deposit).


There's something to be said for convenience. I wish I had 1 account where I could get the best GIC and HISA rates, free MF trading and cheap market trading. I don't find it too onerous for now.


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## gibor365 (Apr 1, 2011)

canucked_up said:


> Just a quick search, and this most recent I see. http://nakedsecurity.sophos.com/201...s-up-to-data-breach-465000-customers-at-risk/ among others not so recent. Not to mention what we don't hear about.
> 
> It's not just the small banks. The bad guys will never stop trying. I'm a PT client, unfortunate incident, but I'm no more worried there than anywhere else. They handled it well in my opinion.
> 
> ...


1. True. Huge Target had same issue last month
2. Also true  If CIBC/CIBC IE would give even close interest to PT 1.8% on HISA, 3% on HISA TFSA and 2.2% on 1 year GIC, I'd definitely move all money there..... however, even with stuff account we have , CIBC rates much much lower....


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## Kursor (Mar 7, 2014)

All FI's big and small have had IT or privacy breaches. Actually non-FI's too (Sony, Google, Adobe, etc). Majority don't disclose it to the public if they know they can get away with it. It's a shame CDIC doesn't reimburse for fraud, only bankruptcy. Best we can do is keep monthly paper statements and track all of our transactions.

A little off topic, a few co-workers of mine used to frequent a Sushi restaurant. One time, it was shutdown, red card displayed. One colleague insisted on going there once they *cleaned up their act* and got their green card. His reasoning, the restaurant is now more cleaner than ever. They'll be ever more vigilant to ensure these mistakes don't happen again. Probably more so than the other restaurants that always have a green sign...because they haven't been caught yet.

Now if PT were to have another privacy breach, I'm sure the vast majority will be running for the hills.



andrewf said:


> I'll have to think about it. I don't want to recommend these small banks, especially given the problems some of them have had with IT/privacy breaches. I recommended going with GICs through Questrade. It also has the convenience of not having to fill out a stack of paperwork and move money around to get good rates when they mature (since the issuing institution will probably be acquired and made uncompetitive by our friendly banking oligopoly over the term of the deposit).
> 
> It'd be really nice if CDIC was raised to $250k per person per account type like the FDIC in the US.


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## doctrine (Sep 30, 2011)

For the information of those here, Oaken Financial is an initiative of Home Trust, which is wholly owned by Home Capital Group (HCG.TO), a stock that many of you will know about. The deposits are CDIC secured. 

http://www.homecapital.com/press_releases/2013/Oaken final.pdf


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## gibor365 (Apr 1, 2011)

doctine, any opinion about Peoples Trust?


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## doctrine (Sep 30, 2011)

No, I've never researched them. I'd be comfortable owning a product by Home Trust though as equally as any other major bank.


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