Oaken Financial Review 2024: Is It Safe, Legit & Worth It?
Oaken Financial Review Rating: 4.3/5
The emergence of digital banks and financial institutions has made it possible for Canadians to enjoy higher interest rates on their savings and investing accounts.
Since online-only banks do not have physical branches to maintain, they usually have less running costs and therefore give higher interest rates to their customers.
As one of the best online banks in Canada, Oaken Financial offers one of the highest non-promo savings and GIC rates.
This article covers a comprehensive Oaken Financial review and a brief comparison with some other popular online banks in Canada.
Let’s get into the details!
Who is Oaken Financial?
Oaken Financial is a digital bank that is owned by Home Trust company – one of Canada’s largest independent trust companies.
The bank was founded in 2013 and has since then been recognized as one of the best providers of competitive savings and GIC rates in Canada.
As a trademark of the reputable Home Bank (formerly CFF Bank), Oaken Financial has won several awards with its competitive banking products.
While the head office of Oaken Financial is in Toronto, the has offices in Halifax, Calgary and Vancouver.
Deposits held in Oaken Financial accounts have CDIC protection because its parent company Home Trust Company is a member of the Canada Deposit Insurance Corporation.
You can access Oaken Financial products and services by using its online banking portal or the mobile app that is available on Apple App Store and Google Play Store.
Is Oaken Financial Safe?
Short answer, yes! This is because deposits in Oaken Financial accounts are covered by the Canada Deposit Insurance Corporation (CDIC) up to $100,000 per insured category.
Oaken Financial also makes use of various digital security systems to protect its customers against unauthorized transactions from their accounts.
Aside from Face ID and Fingerprint security, the Oaken Financial mobile app also allows customers to block any unwanted browser or device from accessing their account information.
With all these security systems and CDIC protection, you can be sure that Oaken Financial is as safe as other Canadian online banks.
Oaken Financial Accounts
At the moment, Oaken Financial only offers a high-interest savings account and different types of Guaranteed Investment Certificates (GICs).
Let’s have an overview of the savings account and each of the GICs one after the other below:
Oaken Savings Account
This is a high-interest saving account with no monthly fees, minimum balance, and transaction limit.
The Oaken Financial savings account offers one of the highest non-promo interest rates in Canada.
With a high-interest rate of 3.40%, the Oaken savings account stands out among several online banks out there.
The unlimited transaction access of the account makes it suitable for both personal and commercial use.
Oaken Financial GICs
If you’re looking to lock in your savings for a given period, Oaken Finance has 1-year to 5-year GIC terms to choose from.
With competitive rates, Oakeb offers registered and non-registered GIC accounts with $1,000 to $10,000 minimum balance requirements.
Let’s take a deeper dive into the Oaken Financial registered and non-registered plans.
1. Oaken Non-Registered GIC Plans
The Oaken non-registered GIC plans give you the opportunity to get quick access to your principal while earning interest on your deposit.
If you have maxed your RSP and TFSA contribution limit, the Oaken non-registered GIC might be worth considering.
The Oaken non-registered GICs are categorized into long-term, short-term and cashable GICs. More details are provided below.
a. Long-term GICs
Oaken long-term GICs offer higher interest rates for long-term investments.
These GICs have term durations of 1-Year, 18-Months, 2-Years, 3-Years, 4-Years, and 5-Years.
If you are looking to save for a medium to long term, this might be a great choice for you to consider.
Below is a table showing the current long-term GIC rates of Oaken Financial as of May 6, 2024:
| Term | Annual | Semi-Annual | Monthly |
| 1 year | 5.35% | 5.30% | 5.25% |
| 18 months | 5.35% | 5.30% | 5.25% |
| 2 years | 5.20% | 5.15% | 5.10% |
| 3 years | 4.80% | 4.75% | 4.70% |
| 4 years | 4.60% | 4.55% | 4.50% |
| 5 years | 4.50% | 4.45% | 4.40% |
Bear in mind that all these GICs cannot be redeemed and you need a minimum deposit of $1,000 before you can invest in them.
Special Offer (Expired)
In celebrating its 10th anniversary, Oaken Financial offered a special GIC rate of 6% on 1-year, 18-month and 2-year terms for those that signed up between November 1 to 30, 2023. It also conducted a 10% GIC interest contest on new 1-year, 18-month and 2-year terms opened within November 1 to 30, 2023.
b. Short-term GICs
The Short-term GICs offered by Oaken Financial are also non-redeemable. This simply means that you can only access the invested funds when the GIC reaches maturity.
Below is a table showing the current interest rates for the Oaken short-term GICs as of May 6, 2024:
| Term | Rate |
| 30-59 days | 2.25% |
| 60-89 days | 2.25% |
| 90-119 days | 2.25% |
| 120-179 days | 2.25% |
| 180-269 days | 2.25% |
| 270-364 days | 2.70% |
As with the long-term GICs, you also need at least $1,000 to invest in any of Oaken’s short-term GICs.
With these Short-term GICs, you get your principal together with the earned interest within a short period.
c. Cashable GICs
These are very flexible GICs that are redeemable at any time even though they are based on a 1-year term.
The Oaken cashable GICs offer competitive interest rates and the option of withdrawing your investment and the interest earned after the first 30 days or 90 days of investing.
Below are the current interest rates for the 1-year term Oaken cashable GICs as of May 6, 2024:
| Term | Rate |
| 30 days | 2.25% |
| 90 days | 2.25% |
If you choose the 30-day cashable GIC plan, then you will be able to withdraw your principal and the earned interest after the first 30 days of your investment.
And, if you choose the 90-day cashable GIC, you will only be able to access your money and the interest after the first 90 days of your investment.
Note that you also need at least $1,000 to invest in any of the Oaken cashable GICs.
2. Oaken Registered GIC Plans
The registered GIC plans offered by Oaken Financial include Registered Savings Plans (RSP), Retirement Income Funds (RIF), and Tax-Free Savings Accounts (TFSA).
All the Oaken registered GIC plans are non-redeemable and have their respective minimum deposit requirements.
Here are the minimum deposit amounts required to invest in each of the Oaken registered GIC plans.
- RSP GICs – $1,000
- TFSA GICs – $1,000
- RIF GICs – $10,000
The table below shows the current interest rate for the Oaken registered GIC plans as of May 6, 2024:
| Term | Rate |
| 1-Year | 5.35% |
| 18-Month (excluding RIF) | 5.35% |
| 2-Year | 5.20% |
| 3-Year | 4.80% |
| 4-Year | 4.60% |
| 5-Year | 4.50% |
Note that the interest rates of the Oaken registered GICs are compounded annually and paid at maturity.
Below is other important information you need to know about some of the Oaken registered GICs.
- Annual interest is only available for the TFSA plans
- RIF plans have monthly, quarterly, semi-annual and annual income options
- The 18-month GIC term is not available for the RIF plan
- RSP plans are also available under 90-days and above short-term GICs
Oaken Financial Rates
As noted above, Oaken Financial offers one of the highest savings and GIC rates you can find in Canada.
Since we have already discussed each of the Oaken Financial offerings above, the following is a brief overview of the Oaken savings and GIC rates.
Oaken Savings Rates
Oaken Financial currently offers only one savings account which is called the Oaken Savings Account.
The current interest rate for the Oaken Savings Account is 3.40%. This rate is one of the highest you can get right now in Canada.
The best part is that this high-interest rate is not a promotional rate. This means that you can earn the interest rate without limit.
Oaken GIC Rates
The registered and non-registered GICs of Oaken Financial offer competitive interest rates compared to the GICs of other Canadian banks.
Below is a highlight of the current Oaken annual GIC rates for both the registered and the non-registered plans as of May 6, 2024:
| Term | Oaken Registered Rates | Oaken Non-Registered Rates |
| 1-Year | 5.35% | 5.35% |
| 18-Month (excluding RIF) | 5.35% | 5.35% |
| 2-Year | 5.20% | 5.20% |
| 3-Year | 4.80% | 4.80% |
| 4-Year | 4.69% | 4.69% |
| 5-Year | 4.50% | 4.50% |
Oaken Financial Fees
One of the best things about Oaken Financial is that it does not charge a fee for the following:
- Monthly fees
- Balance Inquiry
- Electronic statements
- Account closing (upon request)
- Assisted telephone transaction
- Setting up or amending the instructions for recurring funds transfer
- RIF, RSP or TFSA transfer to another Canadian financial institution
- Electronic funds transfer (external and internal)
The only service fees charged by Oaken Financial are listed in the table below:
| Service | Fee |
| Bank confirmation (Form or letter prepared upon request) | $25.00 per letter |
| Dormant account (no activity for 2-9 years) | $20.00 per year |
| Dishonoured cheque deposit (cheque deposited into Oaken account but later returned as dishonoured) | $20.00 per cheque |
| Past statements retrieval (14 months or greater) | $5.00 per month |
| Monthly statement (Paper) | $2.00 per month |
Pros and Cons of Oaken Financial
Let’s take a look at the main benefits and drawbacks of choosing Oaken Financial as your banking institution:
Pros
- No minimum balance on savings: There is no minimum deposit requirement with the Oaken Savings Account despite its high-interest rate.
- No monthly fees: You do not pay monthly fees to invest in Oaken GICs or save money in the Oaken Savings Account.
- High-interest rates: Oaken Financial has one of the highest savings and GIC rates in Canada right now.
- CDIC Protection: Deposits on Oaken Savings accounts and GIC accounts are covered by CDIC up to $100,000 per insured category.
- Multiple GIC plans and flexible terms: With Oaken Financial, you can choose between the registered and non-registered GICs. Also, Oaken offers both short-term and long-term GICs ranging from 30 days to 5 years.
Cons
- No sign-up bonus: Unlike other Canadian online banks, Oaken Financial does not have a referral program or promotional offer for new customers.
- Limited financial products: Oaken Financial currently offers just one savings account. At the moment, you cannot get a mortgage, loans, line of credit and other financial products at Oaken Financial.
- High RIF GIC minimum deposit: You need a minimum of $10,000 to invest in an Oaken RIF GIC account. This is way higher than the limit of most banks in Canada.
My Oaken Financial Review Rating
I rate Oaken Financial 4.3 out of 5 stars based on comparative analysis and the total rating of the following features.
Oaken Financial Review Rating Methodology
Overall Rating
That makes my Oaken Financial review positive and recommendable to Canadians looking for a low-cost digital bank with competitive interest in savings and GIC accounts.
How Do I Open an Oaken Account?
It shouldn’t take you more than 5 minutes to open an Oaken Financial account online.
But unlike other Canadian online banks, Oaken Financial allows you to open an account with it online, in person, via phone or by mail. Learn more below.
- Via Online: You can open an Oaken account online by clicking on this link
- In-person: Book an appointment online to meet with a representative at Oaken offices in Vancouver, Calgary, Halifax or Toronto.
- Via phone: Call Oaken Financial at 1-855-OAKEN-2 (625-3622)
Oaken Financial also allows you to open an account via mail by downloading and filling out the account opening forms.
After filling out the account opening forms, you can mail them alongside the supporting documents to the following address:
Oaken Financial, 145 King Street West, Suite 2500, Toronto, ON M5H 1J8
Bear in mind that the method by which you choose to open an Oaken account will determine how long it’ll take for your application to be approved.
How Oaken Financial Compares
This Oaken Financial review cannot be complete without comparing the bank to some of its competitors in Canada.
Let’s look at how Oaken Financial compares to three other popular Canadian digital banks and financial institutions:
Oaken Financial vs Saven Financial
Saven Financial is FirstOntario Credit Union’s online banking division that functions like a typical digital bank in Canada.
Saven Financial currently offers the same financial products as Oaken Financial. However, Saven Financial offers a much higher savings rate of 4.20% on HISA and FHSA savings accounts.
In addition, the current GIC rates of Saven Financial GIC rates are higher than those of Oaken Financial. See the side-by-side comparison below:
| Term | Oaken Financial | Saven Financial |
| 1-Year | 5.35% | 5.40% |
| 2-Year | 5.20% | 5.30% |
| 3-Year | 4.80% | 4.90% |
| 4-Year | 4.60% | 4.75% |
| 5-Year | 4.50% | 4.65% |
Both Oaken Financial and Saven Financial do not require a minimum deposit for their high-interest savings accounts.
However, Saven Financial requires new customers to pay a one-time membership fee of $25 to join FirstOntario Credit Union.
More so, only Ontorians can bank with Saven Financial at the moment.
Read our Saven Financial review to learn more about how it compares to Oaken Financial.
Oaken Financial vs EQ Bank
EQ Bank is one of the leading digital banks in Canada that is offering competitive interest rates on its savings and GIC accounts.
Currently, EQ Bank offers multiple savings accounts with interest rates starting from 2.50% up to 4.00%.
With a standard savings rate of 3.40%, the Oaken savings account outshines EQ Bank’s 2.50% starting rate .
However, Oaken Financial has only a regular savings account whereas EQ Bank has both regular, registered (including FHSA) and USD savings accounts.
Below is a list of the savings account types offered by EQ Bank and their respective purposes:
- Savings Plus Account (for everyday banking and transactions)
- Joint Savings Plus Account (for joint banking needs of up to 3 people)
- US Dollar Account (for saving money in US Dollars while living in Canada)
- TFSA Savings Account (for maximizing your earnings without paying tax)
- RSP Savings Account (for tax-deferred savings towards retirement)
Aside from multiple Savings accounts, EQ Bank also offers other financial products like GICs, mortgages, international money transfers and a newly launched prepaid Mastercard.
That being said, the following table compares the GIC rates of Oaken and EQ Bank:
| Term | Oaken Financial | EQ Bank |
| 1-Year | 5.35% | 5.25% |
| 2-Year | 5.20% | 5.00% |
| 3-Year | 4..80% | 4.80% |
| 4-Year | 4.60% | 4.60% |
| 5-Year | 4.50% | 4.50% |
From the above table, it is clear that Oaken currently offers higher GIC rates than EQ Bank.
READ ALSO: Check out our EQ Bank e-Transfer Limit article to learn more about the digital bank.
Oaken Financial vs Tangerine
Tangerine is another popular digital bank in Canada that is offering competitive interest rates with a comprehensive collection of banking and investment products.
While Oaken Financial only offers savings and GIC accounts, Tangerine bank offers the following financial products:
- Savings accounts
- Chequing accounts
- GICs
- Mortgages
- Personal loans
- Lines of credit
- Mutual funds
- Credit cards
Tangerine also offers different types of savings accounts with interest rates ranging from 1.00% to 1.10%.
One interesting thing about Tangerine is that it offers a competitive promotional savings rate. Currently, new account holders get a promotional savings rate of 5.75% with Tangerine. This is one of the highest savings rates in Canada at the moment.
That being said, below is the list of all Tangerine savings accounts and their non-promotional rates:
- Savings Account – 0.70%
- Children Savings Account – 0.80%
- Tax-Free Savings Account – 0.70%
- RSP Savings Account – 0.70%
- US Dollar Savings Account – 0.10%
- RIF Savings Account – 0.75%
With a 3.40% savings rate, Oaken Financial outshines Tangerine in terms of non-promotional interest rates on savings.
Both Tangerine and Oaken Financial don’t charge monthly fees or require a minimum deposit to open a savings account with them.
Below is a side-by-side comparison of Oaken GIC rates with Tangerine GIC rates:
| Term | Oaken Financial | Tangerine |
| 1-Year | 5.35% | 5.20% |
| 2-Year | 5.20% | 3.60% |
| 3-Year | 4.80% | 5.00% |
| 4-Year | 4.60% | 5.00% |
| 5-Year | 4.50% | 5.00% |
Overall, Oaken Financial offers higher non-promotional rates than Tangerine bank.
READ MORE:
- Read our Tangerine High-Interest Savings Account Review to learn how it compares to Oaken Financial Savings Account
- Check out our Tangerine e-Transfer Limit article
- Check our Tangerine Credit Card Promotions review
- Learn how to choose the best online bank in Canada such as Oaken Financial
Verdict on Oaken Financial Review
If you’re looking to switch or open another bank account with a different financial institution, online banks like Oaken Financial are worth considering.
As you can see, Oaken has one of the highest interest rates on savings accounts and GICs among other digital banks in Canada.
However, this Oaken Financial review shows that the bank lags in terms of the number of products offered, welcome bonus and required minimum deposit on RIF GICs.
If you’re concerned about Oaken drawbacks, you have many alternatives to consider including EQ Bank, Saven Financial and Tangerine.
Is Oaken Financial for you? Kindly share your thoughts with me in the comment section.
RECOMMEND READINGS:
- Read our Peoples Trust Review to learn how it compares to Oaken Financial
- Read our Motive Financial Review to learn how it compares to Oaken Financial
- Read our Achieva Financial Review to learn how it compares to Oaken
- Read our AcceleRate Financial Review to learn how it compares to Oaken Financial
FAQs on Oaken Financial Review
Is Oaken Financial available in Quebec?
Yes. Oaken Financial is one of the few online banks that’s available to Quebec residents.
Where is Oaken Financial located?
Oaken Financial’s headquarters is located in Toronto. However, the bank has offices across Halifax, Calgary and Vancouver.
Is Oaken Financial trustworthy?
Oaken Financial is trustworthy as a registered trademark of Home Bank and a subsidiary of Home Trust Company. Deposits with Oaken Financial are CDIC-insured up to $100,000 per eligible account.
Does Oaken Financial charge fees?
Oaken Financial does not charge fees for everyday banking such as monthly fees and electronic fund transfer fees. However, the bank charges other administrative fees to sustain itself in business.
Who owns Oaken bank?
Home Trust is the parent company of Oaken Financial but Oaken operates as the trademark of Home Bank. Home Trust Company is currently the largest independent trust company in Canada.
Is Oaken Financial a Canadian company?
Oaken Financial is not a separate Canadian company, but rather a trademark of Home Bank and a subsidiary of Home Trust.
How do I Withdraw money from Oaken?
To withdraw money from your Oaken Financial account, you have to transfer the money to an external account with another financial institution in Canada.
Does Oaken Financial have an app?
Yes. You can access your Oaken Financial account with the Oaken digital app which is available on Apple App Store and Google Play Store.
The Oaken digital app gives you 24/7 direct access to manage your finances with Oaken Financial.
Is Oaken Financial a bank?
Yes. Oaken Financial operates as a digital bank of Home Trust in Canada. Oaken has won several awards for its competitive banking products and services.
Does Oaken have TFSA?
Yes. Oaken Financial allows you to save in a TFSA GIC with 1-year to 5-year terms.
Does Oaken have RRSP?
Yes. Oaken Financial offers RRSP GIC accounts with 1-year to 5-year terms.
Oaken Financial Review
Summary
This Oaken Financial review is positive and recommendable to Canadians looking for a low-cost digital bank with competitive interest on savings and GIC accounts.
Not sure where you’re getting the 6% rate for oaken. This is not their posted rate and never has been. 6% is what Tangerine offers its preferred clients, but only until the end of January 2024.
Oaken actually offered up to 6% GIC rate as of November 2 (indicated in the post). Rates change frequently so we always provide dates to avoid confusing past rates with current rates.
I’ve been an oaken client for years, checking their site often, especially in the past 60 days, daily. That has never been there. I don’t doubt you saw it – perhaps a coincidental error (is there an American site?).
Sorry, you missed that great offer. Visit the following Wayback Machine link to confirm that Oaken Financial did offer Canadians up to GIC 6% rate in November: https://web.archive.org/web/20231128035824/https://www.oaken.com/gic-rates/ . You can copy their GIC rates link and paste it on Wayback Machine if you’re still doubting.
We’ll I’m sorry I missed that too. Must have been a “whoopsie” because it sure isn’t there now and hasn’t been for weeks.
Wendy
Yeah, it was part of their 10 years anniversary offer.