Oaken Financial GIC review

We’ll help you find out whether an Oaken Financial GIC is right for you and how you can apply for one.

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Oaken Financial GIC

Whether you’re a senior, working professional or student, you’ll want to know whether Oaken Financial is the right investment for your financial needs and lifestyle. Read on to learn about the benefits and features of an Oaken Financial GIC. We’ll also help you understand the eligibility requirements and how to apply.

Types of Oaken Financial GICs

Non-registered

You’ll need to make several choices regarding the following:

  • Type of GIC. Choose between cashable and non-cashable GICs as well as whether your GIC is for personal or commercial investment.
  • Term to maturity. Terms range from 30 days to five years.
  • Interest payment interval/frequency. You can earn interest paid monthly, semi-annually, annually or at maturity.
  • Issuer. Pick from Oaken Financial’s two independent CDIS insured issuers, Home Bank and Home Trust Company, for each deposit
  • Minimum deposit. You will need to have a minimum deposit of $1,000.

Registered

Oaken Financial offers registered GICs with the following options:

  • Type of GIC. Most of the bank’s short-term and long-term GICs are non-redeemable, with only one cashable one-year GIC option.
  • Choice of fund. Registered GICs are available only for Registered Retirement Savings Plans (RRSP), Tax-Free Savings Accounts (TFSA) and Retirement Income Funds (RIF).
  • Term to maturity. Terms range from 30 days to five years.
  • Interest payment interval/frequency. Earn interest paid monthly, semi-annually, annually or at maturity for long-term GICs. Short-term and one-year cashable GICs earn interest compounded annually, which is paid at maturity.
  • Minimum deposit. A $1,000 minimum deposit is required for most GIC products, apart from the RRSP option, which is available from 90 days with a $2,500 minimum deposit.
  • Choice of two issuers. Pick from two independent CDIS insured issuers, Home Bank and Home Trust Company for each deposit.

How does Oaken Financial compare to other banks?

Oaken Financial is one of Canada’s CDIC-insured, online-only banks offering competitive interest rates on GICs across Canada.

Oaken Financial GICs are available to all Canadian citizens.

Benefits of buying GICs with Oaken Financial

Competitive interest rates

Oaken Financial offers some of the highest interest rates among Canadian banks. If you’re looking for no-frill, competitive savings rates, the bank’s offers may appeal to you.

No monthly service fee

Similar to other online-only banks in Canada with lower maintenance overheads, in exchange for having to deal mostly with the bank via its digital platforms, Oaken Financial does not charge its customers monthly service fees.

However, some services will still attract specific charges, so it’s best to check the full details of your selected product before applying.

Potential drawbacks of Oaken Financial

Minimum deposit required

In most cases, you’ll need to make a minimum deposit of $1,000 to purchase an Oaken Financial GIC. If you prefer a bank that has no minimum deposit requirement, you may want to carefully consider your other options before making a final investment decision.

Mostly online-only bank

If you prefer a bank that has brick-and-mortar locations, then Oaken Financial may not suit your banking needs. While it does have physical offices that you can book to visit in person, the majority of the time you will be dealing with Oaken Financial through its digital platforms.

No dedicated mobile app

Compared to other online-only banks in Canada, Oaken Financial does not have a dedicated mobile app. This means that you’ll have to access its digital services through its web browser or on your phone or tablet device.

For app-savvy users who highly value intuitive design and prefer to access day-to-day banking services on the go, you may find Oaken Financial’s interface particularly lacking.

Limited investment and savings options

Apart from GICs, Oaken Financial has no other investment offerings and only one savings account option. If you’re looking to do all your banking in one place, Oaken Financial may not be the right provider for your needs.

How do I purchase an Oaken Financial GIC?

There are four ways for you to purchase an Oaken Financial GIC:

  1. Online. When submitting your application online, you will need to supply the required documents [link to section] listed below. You can also email service@oaken.com if you have any questions about your application.
  2. Via phone. Call 1-855-OAKEN-22 (625-3622) on Monday to Friday between 8am to 8pm ET or leave a message outside this time and a representative should get back to you within the next business day.
  3. In person. Choose to walk in or book an appointment to meet at one of Oaken Financial’s branches located in Vancouver, Calgary, Toronto and Halifax. You’ll need to bring one piece of ID, one cheque to open your account and a void cheque to set up the fund transfer. You can also begin filling out the relevant application form(s), which are all available for download on their website
  4. By mail. To open an account, you can first fill out the application forms and applicable supporting documentation available online. Then, mail your completed forms and documentation to Oaken Financial, 145 King Street West, Suite 2500, Toronto, ON M5H 1J8.

Once you’ve submitted your application, you’ll receive an email confirmation of your investment details and instructions to confirm your request.

Eligibility requirements

In general, you will need to be at least 18 years old and a resident of Canada to qualify. Specific GIC products may have further eligibility criteria, so it’s best to check all requirements for your chosen GIC before applying.

Required documents

You’ll need to provide proof of your residency status, age, social insurance number (SIN) and email address.

Existing customers will need to provide their client number or savings account number, which is located on your confirmation document.

Oaken Financials ratings, review and complaints

As a subsidiary of Home Trust Bank (its holding company Home Capital Group is publicly listed on the Toronto Stock Exchange), some customers have been wary of investing in GICs from Oaken Financial because they see the bank as more “risky” due to the negative reputation its parent acquired in regards to potential insolvency.

However, since all deposits under $100,000 are protected by CDIC, as long as your total deposit remains under this limit, you could potentially benefit from the competitive interest rates offered by Oaken Financial while keeping your money safe.

Bottom line

Whether you’re already banking with Oaken Financial or considering purchasing a GIC from them, Oaken Financial offers a large variety of GICs for you to choose from.

If you’re ready to invest in an Oaken Financial GIC, click the green “go to site” button below.

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Frequently asked questions

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