Security and trust - these are two important qualities sought by savers and investors, and the ideal invoked by new brand Oaken, a direct-to-consumer brand recently unveiled by Home Trust.
Like the stately oak tree, the independent trust company, which has provided savings options to Canadians for over 25 years, is now offering well-rooted and guaranteed options for savers and investors under the new Oaken Financial brand.
Savings and investments with Oaken are fully eligible for CDIC-coverage up to applicable limits and are guaranteed by Home Trust. The new brand was introduced on November 29 with the fitting tagline “Plant for your future”. In addition, the new Oaken Savings account was also launched with an interest rate of 1.65%.
"The introduction of Oaken is part of Home Trust's efforts to provide customers with a secure alternative to managing their savings independently," said Martin Reid, President of Home Trust. "We want to offer our customers choice, respect and simplicity. Consumers today are also looking for better value and Oaken Financial offers some of the best rates in Canada."
The Impact On Existing Consumers
Home Trust is the latest financial institution to introduce a new name as of late - ING Canada unveiled their new moniker Tangerine during a live video announcement last month. However, the important distinction here is that there’s no acquisition involved - ING’s name change is a result of its sale conditions to Scotiabank. Oaken, on the other hand, is a new brand launched by a long-established trust company.
The new brand will apply to all current GIC investors who deal directly with Home Trust. Their services, interest rates and terms will not be altered - the only change will be to their correspondence. GIC investors who are serviced by deposit brokers will continue to receive their correspondence under the Home Trust brand.
New Leaf, New Rates
Home Trust has billed itself as a competitive option for conservative money management - a welcome change for savers who’ve been served a rather raw deal by today’s historically low interest rate environment. A low cost of borrowing may be great for mortgage and loan borrowers - but it equals paltry returns for those looking to securely set aside their funds.
GICs offer one of the highest returns on savings, while maintaining investor security - the initial principal investment plus accrued interest is always guaranteed.
Oaken offers the Oaken Savings Account and a variety of GIC options that range from 30 days to five years to consumers as well as commercial entities. Its registered plans include GICs offered in Registered Savings Plans (RSP), Tax Free Savings Account (TFSA), and Registered Income Fund (RIF).
Currently Oaken Financial is offering 3% on their five-year non-redeemable GIC (with a minimum $1,000 investment). Compare that to the big bank market leader BMO, offering just 1.95% on the same features.
Fresh High Interest Savings
Consumers can also benefit from the high interest Oaken Savings Account, which offers 1.65%, with no monthly fees, transactional limits or required minimum balance. Interest is calculated daily and paid monthly. Online banking services will also be made available in Spring 2014.