High interest rates for savings, GICs and MMFs (2017)

Banking and Saving strategies, maximizing interest rates, budgeting, GICs, HISAs.
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adrian2
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Re: High interest rates for savings, GICs and MMFs (2017)

Post by adrian2 »

BRIAN5000 wrote: 05 Jun 2017 13:47 1 -5 Year Rate Special
1 Year at 2.55%
2 Year at 2.75%
3 Year at 2.80%
4 Year at 2.85%
5 Year at 3.00%
Minimum $5,000 Available for
non-registered, RSP, RIF, TFSA and Corporate.
http://mailchi.mp/gicdirect/gicdirect-r ... 2eaadda83a
Once again, may I ask that you mention the source for these rates?
Is it Oaken, or something else?
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Re: High interest rates for savings, GICs and MMFs (2017)

Post by BRIAN5000 »

adrian2 wrote: 05 Jun 2017 14:48
BRIAN5000 wrote: 05 Jun 2017 13:47 1 -5 Year Rate Special
1 Year at 2.55%
2 Year at 2.75%
3 Year at 2.80%
4 Year at 2.85%
5 Year at 3.00%
Minimum $5,000 Available for
non-registered, RSP, RIF, TFSA and Corporate.
http://mailchi.mp/gicdirect/gicdirect-r ... 2eaadda83a
Once again, may I ask that you mention the source for these rates?
Is it Oaken, or something else?
First if you interested click on the link which clearly has gic direct in it, how hard is that? You will have to stop being so lazy this time and do your own leg work on this one. GIC Direct lists the rates but not the issuer so if you have an interest you have to chase it down. The reason I posted looked like pretty good rates may all be Oaken I'm not sure. If you phone GIC Direct they may send you a PDF so you can see the issuers and make a plan to maintain CDIC coverage. With their online application, which I tried twice both times it crashed, they say to call for quotes on amounts over 1 Mil so most of us will have to call anyway. So now you have me curious looks like providers other than Oaken unless they have shaved bp's for commish.
Last edited by BRIAN5000 on 05 Jun 2017 15:05, edited 1 time in total.
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Re: High interest rates for savings, GICs and MMFs (2017)

Post by adrian2 »

BRIAN5000 wrote: 05 Jun 2017 14:56
adrian2 wrote: 05 Jun 2017 14:48
BRIAN5000 wrote: 05 Jun 2017 13:47 1 -5 Year Rate Special
1 Year at 2.55%
2 Year at 2.75%
3 Year at 2.80%
4 Year at 2.85%
5 Year at 3.00%
Minimum $5,000 Available for
non-registered, RSP, RIF, TFSA and Corporate.
http://mailchi.mp/gicdirect/gicdirect-r ... 2eaadda83a
Once again, may I ask that you mention the source for these rates?
Is it Oaken, or something else?
First if you interested click on the link which clearly has gic direct in it, how hard is that? You will have to stop being so lazy this time and do your own leg work on this one.
I cannot click on certain links, as my company restricts access to external mails accounts.
if I do click, I get a nice warning from corporate that all Internet activity is monitored and I'm being a bad boy. :twisted:
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Re: High interest rates for savings, GICs and MMFs (2017)

Post by SoninlawofGus »

The Oaken site seems really slow today, but this page is showing 3.10% for the five-year.
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Re: High interest rates for savings, GICs and MMFs (2017)

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I cannot click on certain links, as my company restricts access to external mails accounts.
if I do click, I get a nice warning from corporate that all Internet activity is monitored and I'm being a bad boy. :twisted:
Ok sorry that's a pretty good reason but this one needs some personal attention for determining providers thought it may be of interest though.
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Re: High interest rates for savings, GICs and MMFs (2017)

Post by BRIAN5000 »

SoninlawofGus wrote: 05 Jun 2017 15:21 The Oaken site seems really slow today, but this page is showing 3.10% for the five-year.
That may be for direct only if you went through GIC Direct for an Oaken Gic you may only get 3%
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Re: High interest rates for savings, GICs and MMFs (2017)

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Re: High interest rates for savings, GICs and MMFs (2017)

Post by Rysto »

And Oaken hikes rates again...
1 Year GIC – 2.75% (previously 2.60%)
18 Month GIC – 2.85% (previously 2.70%)
2 Year GIC – 2.95% (previously 2.80%)
3 Year GIC – 3.05% (previously 2.90%)
4 Year GIC – 3.15% (previously 3.00%)
5 Year GIC – 3.25% (previously 3.10%)
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Re: High interest rates for savings, GICs and MMFs (2017)

Post by BRIAN5000 »

Just got an email from Oaken this morning

From - Service
Subject - Notification Maturity Alert

WTF? Didn't know what it was for a minute didn't see the non highlighted text never got one of these before.

On closer inspection, My email displays part of the text in the subject line

Oaken Alert: Your Oaken GIC in the amount of $ XX,045.50 will mature on July XX, 2017.

When you click on the email it says its from Service@Oaken.Com, looked like spam to start with just like the phishing attempt from DocuSign above it.

Is this new, Rep says maybe six months old, is this appropriate to display amounts renewing in emails. Rep says if I remove my email I would have no online access. Just checking into this now.

Any comments?
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Re: High interest rates for savings, GICs and MMFs (2017)

Post by AltaRed »

It's almost always a phishing attempt. Never click on anything like that. Use your own trusted access to find out if you indeed have a GIC for that much, maturing on that specific date.
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Re: High interest rates for savings, GICs and MMFs (2017)

Post by BRIAN5000 »

AltaRed wrote: 12 Jun 2017 15:19 It's almost always a phishing attempt. Never click on anything like that. Use your own trusted access to find out if you indeed have a GIC for that much, maturing on that specific date.
Yup I agree, I don't want them to send this anymore supposingly I have no choice.(but I'm checking into that)
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Re: High interest rates for savings, GICs and MMFs (2017)

Post by good4u »

BRIAN5000 wrote: 12 Jun 2017 15:05 Just got an email from Oaken this morning

From - Service
Subject - Notification Maturity Alert

WTF? Didn't know what it was for a minute didn't see the non highlighted text never got one of these before.

On closer inspection, My email displays part of the text in the subject line

Oaken Alert: Your Oaken GIC in the amount of $ XX,045.50 will mature on July XX, 2017.

When you click on the email it says its from Service@Oaken.Com, looked like spam to start with just like the phishing attempt from DocuSign above it.

Is this new, Rep says maybe six months old, is this appropriate to display amounts renewing in emails. Rep says if I remove my email I would have no online access. Just checking into this now.

Any comments?
We have received these kinds of e-mails from Oaken in the past on a regular basis so it is most likely genuine. You can always look at the e-mail address of the sender and if it is indeed service@oaken.com this is probably additional assurance it is authentic. HOWEVER, no need to take a chance and click on anything in the e-mail. Take the e-mail (or not) for what value it provides to you and then contact Oaken via phone or in person to do your business. This is good safe practice from my point of view. Why chance it, ever.
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Re: High interest rates for savings, GICs and MMFs (2017)

Post by Koogie »

EQ has a referral special on. $25 for each new customer (payable to both parties). I won't be so gauche as to list my EQ reference number here but suffice to say, lots of FWFers are EQ users, so feel free to ask around if interested. (given the ongoing situation, remember to stay within the CDIC limit with EQ).

=======================
EQ Bank is better with friends - $25 better, in fact.

Invite your friends to open a new EQ Bank Savings Plus Account and we'll deposit $25 into your EQ Bank Savings Plus Account for each referral, up to a maximum of $125 1.

We'll also deposit $25 in all those new accounts, too.That's $25 for you and $25 for each person who opens an EQ Bank Savings Plus Account.

You still have time to collect as much as $125 to add towards your savings goals.

But the offer only lasts from now until June 20, 2017.
=======================

With our everyday 2.30% interest rate*, it pays to save with us. So share the wealth with friends and family, and spread the word about EQ Bank!
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Re: High interest rates for savings, GICs and MMFs (2017)

Post by AltaRed »

Gotta wonder why EQ is doing what it is doing....to be that far out in front of its competition. As HCG found out, HISA capital can disappear in a flash.
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Re: High interest rates for savings, GICs and MMFs (2017)

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AltaRed wrote: 13 Jun 2017 14:52 Gotta wonder why EQ is doing what it is doing....to be that far out in front of its competition. As HCG found out, HISA capital can disappear in a flash.
As HCG's HISA capital disappears, it has to call in the on demand loans. The on demand loan borrowers has to find other source, some land in EQ who opens its welcoming arms.
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Re: High interest rates for savings, GICs and MMFs (2017)

Post by rhenderson »

Now even Royal Bank is offering 2% until Dec 1. :lol:

http://www.rbcroyalbank.com/dms/pba/e-s ... -d-or.html
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Re: High interest rates for savings, GICs and MMFs (2017)

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max88 wrote: 13 Jun 2017 22:40 As HCG's HISA capital disappears, it has to call in the on demand loans. The on demand loan borrowers has to find other source, some land in EQ who opens its welcoming arms.
That part I understand but have to wonder where EQ has changed their business model some. HCG was the main 'go to' for sub-prime mortgages because of who they were willing to accept (and have a good business doing it). Inded a new opportunity for EQ to encroach on that territory I suspect but HISA money is not what you'd want for lending on sub-prime mortgages. The lesson from HCG is HISA money disappears fast. EQ should be promoting its GICS... but between FB and BNN ads, EQ is spending an awful lot on advertising its HISA this past month.
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Re: High interest rates for savings, GICs and MMFs (2017)

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AltaRed wrote: 13 Jun 2017 14:52 Gotta wonder why EQ is doing what it is doing....to be that far out in front of its competition. As HCG found out, HISA capital can disappear in a flash.
They're using CDIC insured accounts/ products to make subprime loans. Shouldn't be allowed IMHO.
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Re: High interest rates for savings, GICs and MMFs (2017)

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randomwalker wrote: 15 Jun 2017 16:04
AltaRed wrote: 13 Jun 2017 14:52 Gotta wonder why EQ is doing what it is doing....to be that far out in front of its competition. As HCG found out, HISA capital can disappear in a flash.
They're using CDIC insured accounts/ products to make subprime loans. Shouldn't be allowed IMHO.
Probably right on that, but then it would be an EQ insolvency before CDIC would have to pay up on deposits anyway. So they do have skin in the game. What I don't understand is why they are promoting their HISA rather than their GICs. HISA money seems to be inviting instability and NOT what they should really want. BWTFDIK.
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Re: High interest rates for savings, GICs and MMFs (2017)

Post by DenisD »

Don't think they offer GICs. And, after the first few months, they limited new clients to $100k.
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Re: High interest rates for savings, GICs and MMFs (2017)

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DenisD wrote: 15 Jun 2017 16:22 Don't think they offer GICs. And, after the first few months, they limited new clients to $100k.
Sure they do at https://www.equitablebank.ca/investment-rates Just offer the same product at EQ Bank.
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Re: High interest rates for savings, GICs and MMFs (2017)

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randomwalker wrote: 15 Jun 2017 16:04
AltaRed wrote: 13 Jun 2017 14:52 Gotta wonder why EQ is doing what it is doing....to be that far out in front of its competition. As HCG found out, HISA capital can disappear in a flash.
They're using CDIC insured accounts/ products to make subprime loans. Shouldn't be allowed IMHO.

Off The Hook
Alternative lenders can take on risk because they have the security blanket of the Canadian government
By Nathan Munn, Vice News, vice.com May 24, 2017

https://news.vice.com/story/how-alterna ... nders-work
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Re: High interest rates for savings, GICs and MMFs (2017)

Post by randomwalker »

randomwalker wrote: 15 Jun 2017 19:18
randomwalker wrote: 15 Jun 2017 16:04
AltaRed wrote: 13 Jun 2017 14:52 Gotta wonder why EQ is doing what it is doing....to be that far out in front of its competition. As HCG found out, HISA capital can disappear in a flash.
They're using CDIC insured accounts/ products to make subprime loans. Shouldn't be allowed IMHO.

Off The Hook
Alternative lenders can take on risk because they have the security blanket of the Canadian government
By Nathan Munn, Vice News, vice.com May 24, 2017

https://news.vice.com/story/how-alterna ... nders-work
Purely from the subprime bank/ lender's perspective it's very much a "heads I win, tails I don't lose" type of business model, kind of like running a 2 and 20 hedge fund. It's just a simple spread business, take deposits and pay x then lend the money for X plus a few percent and repeat as long as the music keeps playing and all the while paying yourself along the way.
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Re: High interest rates for savings, GICs and MMFs (2017)

Post by NorthernRaven »

randomwalker wrote: 15 Jun 2017 19:28
randomwalker wrote: 15 Jun 2017 19:18
randomwalker wrote: 15 Jun 2017 16:04

They're using CDIC insured accounts/ products to make subprime loans. Shouldn't be allowed IMHO.

Off The Hook
Alternative lenders can take on risk because they have the security blanket of the Canadian government
By Nathan Munn, Vice News, vice.com May 24, 2017

https://news.vice.com/story/how-alterna ... nders-work
Purely from the subprime bank/ lender's perspective it's very much a "heads I win, tails I don't lose" type of business model, kind of like running a 2 and 20 hedge fund. It's just a simple spread business, take deposits and pay x then lend the money for X plus a few percent and repeat as long as the music keeps playing and all the while paying yourself along the way.
I think some things are being conflated here that shouldn't. Home and Equitable do "alt" and "subprime" mortgages, but they also do some prime mortgages that qualify for CMHC insurance.

Mortgages that go into NHA MBS securities and CMB bonds must be CMHC guaranteed. This means that Home and Equitable can't just throw their subprime mortgages into the pot. The mortgages must meet CMHC underwriting standards for credit score, debt service and so on. Indeed, BMO and others are trying to create mortgage-backed securities from subprime (and non-guaranteed) mortgages, which the Home mess has put a spoke into. That's different from the guaranteed mortgage securities the article is talking about.

The article seems somewhat sloppy in implying that a mortgage coming from Home/Equitable into the MBS programs is different and riskier than than from other banks. This shouldn't be the case - they all have to meet whatever requirements CMHC insurance imposes, and only a subset of Home/Equitable mortgages are going to be eligible, as opposed to a majority from the big banks that pretty much restrict themselves to this sort of borrower. The underwriting/verification scandal that caused Home to terminate those 45 brokers is of note here - it was apparently the CMHC-insurable line that they weren't doing income verification properly. That would have got CMHC's attention, but it doesn't seem that it was anything that caused CMHC to freeze Home out of the securitization process.

For derecognition, even though the mortgages have been "securitized", the original lender is still responsible for fronting the payments to the securitization in case of non-payment, replacing defective mortgages in the pool, etc. While this is so they can't be taken off the balance sheet, and the derecognition process appears to be a second transaction with someone who is willing to take that on the risk/reward of the pooled mortgages. The originator no longer has an investment stake in the mortgages, and is presumably just the servicer for a fee.
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Re: High interest rates for savings, GICs and MMFs (2017)

Post by snowback96 »

Is anybody else taking another look at the juicy yields from Oaken (Home Trust and Home Bank)? Now that things have appear to have stabilized these GICs look much lower risk than they did when they were raised. I still want to stay below CDIC limits but I find it hard to believe that Buffett would invest in this if there was any chance of it going tits up in the next couple years. Thoughts?
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