Top Out Your Investments: Oaken GIC Rates

Oaken Financial classifies long-term GICs as those that last at least one year. The institution has GICs with terms that range from one to five years, and the minimum deposit is $1,000.

Each option lets you receive interest annually, semi-annually, or monthly. Annual rates are higher than the others, even for GICs with the same fixed term.

Rates on a one-year GIC are 1.3% for monthly, 1.35% for semi-annual, and 1.4% for annual payments. The 18-month GIC has an even higher rate of 1.5% to 1.6%, depending on the frequency of interest payments.

If you get a two-year GIC, you can earn 1.4% to 1.5% on your investment. When you invest for three years, you can get the same rates as you would with an 18-month GIC.

You will earn 1.6% to 1.7% on your investment with a 4 year GIC, again, depending on the frequency of interest payments. A five-year GIC has interest rates from 1.7% to 1.8%.

A long-term GIC can be a good option, but it does mean you can't access that money for a long time. If you don't want to tie up your money for long, you can get a short-term GIC.

Short-term GICs can be for 30 to 364 days, and the interest rates depend on that length. If your GIC is 30 to 59 or 60 to 89 days, you can earn 1.25% in interest.

At 90 to 179 days, you can earn 1.3% in interest.

If you invest in a GIC for 180 to 269 days, you can earn 1.3% on your investment as well. When you invest for 270 to 364 days, you'll earn 1.35% on your investment.

With any short-term GIC, Oaken Financial requires that you deposit at least $1,000. You will get your interest payment when your GIC matures.

If you want a longer-term investment but may want access to your money, you can consider a cashable GIC from Oaken Financial. Unlike other GICs, you'll have access to your money at any point after a penalty period.

You can withdraw your money after 30 or 90 days. The interest rate for this GIC at Oaken Financial is 0.50%, and you'll need to deposit at least $1,000. 

A cashable GIC can be a good way to take advantage of higher interest rates compared to a traditional savings accounts while still being able to access your money. They're great if you want extra security from your investment.

First, you should consider how soon you may need to access your funds. If you've never invested before, you may want to start with a short-term GIC, to dip your toes.

On the other hand, if you're risk-averse and want to maximize your interest rate, a five-year GIC might be best for you.

Getting a GIC will also lock in that interest rate for the entire period. If interest rates decrease, you won't have to worry about potentially earning less interest.

If your GIC matures and interest rates have increased, you can renew your GIC at the new rate.

Consider if you may need access to your money before the GIC matures. If so, a cashable GIC would be more suitable.

You'll still need to wait for a month or so before you can withdraw. But after that period, you can take out money from your GIC without any penalties.

You can also get a standard one-year GIC to get a higher interest rate. You'll have to wait the full year to get your money.

Another thing to think about is your savings goals. A GIC is an excellent investment if you're looking to save up for a major purchase because it's return is guaranteed.

If you're saving up to buy a house in a few years, you may not need that money soon. So you could take advantage of the higher Oaken Financial rates with a longer GIC.

For smaller purchases consider this: if you know you’ll need to replace your laptop in a year, you could invest the money you’re willing to spend on your purchase in a short-term GIC, allowing you to earn interest on it. You could use your profits to buy a better laptop than you originally envisioned, or for any other purposes.