Oaken Financial Review

What is Oaken Financial?

What is Oaken Financial? 

Oaken Financial is a digital bank owned by Home Trust Company, which is a subsidiary of Home Capital Group Inc. (one of Canada’s largest trust companies). Home Trust has been around since 1987 and founded Oaken Financial in 2013. While a digital bank, Oaken Financial has a few physical locations in cities across the country: Vancouver, Calgary, Toronto, and Halifax, although the Halifax location is currently closed. 

Being an online bank, Oaken Financial can pass the savings from overhead costs down to its customers through increased interest rates in both their savings accounts and GICs. Their website introduction outlines Oaken as “a refreshing alternative” to other financial institutions, with their priority being their customers.

Is Oaken Financial Safe?

Safety with finances, and specifically with online banking, is a legitimate concern. And a lesser-known name, such as Oaken Financial, may cause further wariness for would-be clients.

Fortunately, your savings with Oaken Financial are protected by Canadian Deposit Insurance Corporation (CDIC) coverage through either Home Bank or Home Trust Company. This is up to a limit of $100,000 per account type, per issuer. In this case, Home Bank and Home Trust Company are separate issuers, so you can open an account with each issuer to get more room for insured funds. This isn’t something you usually find within a single institution!

Beyond CDIC coverage, Oaken Financial has secured websites, secure login with unique username and password or biometric authentication on the Oaken Digital app, multi-factor authentication, and an internal secure messaging center.

Oaken Financial Fees

When it comes to fees with Oaken Financial there isn’t much to mention! Fortunately for clients, Oaken has kept their fee structure pretty barebones so that you can focus on growing your money.

Account Types

Oaken Financial’s two main products are the Oaken Savings Account, and a comprehensive offering of Guaranteed Investment Certificates (GICs), both of which are dependable options to grow your money. The GICs can be held in non-registered or registered accounts (including TFSAs, RRSPs, and RIFs). They do not offer RESPs or FHSAs. 

Oaken Financial also does not offer chequing accounts which greatly limits their utility as an everyday bank. If you are in search of an account for day-to-day use, check out our top picks for chequing accounts.

If you’re just looking to save and invest with little hassle, you will find their savings account and GIC options attractive. 

Savings Account

The savings account rate with Oaken Financial is competitive at 3.40%. We often see teaser rates that decrease after a set period, or promotional rates requiring you to take actions such as setting up payroll deposits. Oaken Financial’s savings rate is ongoing, however, with no extra work required to receive the 3.40% interest on your savings. This rate is valid for your non-registered and registered accounts. 

There are no fees or minimum balance requirements, and no limitations on the number of transactions you can make with the Oaken non-registered savings account. Within a registered savings account there is a limited number of transactions.

Both types of savings accounts are eligible for CDIC coverage through either Home Bank or Home Trust Company, and you can open a separate account insured by each issuer to maximize your room for insured funds. For a deep dive into the top current rates available in Canada check out our comparison article of Canada’s Best High Interest Savings Accounts.

Tax Free Savings Account (TFSA)

Oaken Financial offers TFSAs and you can choose between receiving their savings account rate or investing in a GIC. 

New to TFSAs? Check out our guide to 2024 TFSA Contribution Room, Rules and Limits.

RRSP and RIF

RRSPs and RIFs are also available accounts through Oaken Financial, and as with TFSAs, you can take either their savings account rate of 3.40% or lock into a GIC of a set time frame.

This could help you on your way to build a $1,000,000 RRSP starting in your 30s, 40s, or 50s.

Oaken Financial GICs

For those looking to securely maximize the amount of interest earned on their money, a Guaranteed Income Certificate (GIC) is a great option. It just takes a bit more planning as your money will be unavailable/”locked away” for the specified term period.

Fortunately, Oaken Financial offers GIC terms from 30 days up to 5 years. The longer you lock in your money, the higher the interest rate you’ll receive. Oaken Financial GICs have a minimum deposit amount of $1,000.

They also offer multiple GIC account options: Non-registered plans, as well as registered plans/accounts. The government-registered accounts included in Oaken GICs are Tax Free Savings Accounts (TFSAs), Registered Retirement Savings Plans (RSPs), and Retirement Income Funds (RIFs). As for term lengths, they have long-term GICs of 1-5 years and short-term GICs of 30-364 days.

Oaken Financial also offers Cashable GICs: flexible investment options allowing you to withdraw your money before the end of the GIC’s term. Oaken’s Cashable GIC term length is 1 year and the interest rates for after both 30 days and 90 days is 2.25%.

In 2023, The Globe and Mail stated, “online bank Oaken Financial started a golden age in GIC investing in June 2022, when it introduced a 5-per-cent rate for a five-year term.” Fast forward to August 2024, and their GIC rates have dropped, but Oaken Financial remains a solid contender when it comes to GIC rates.

New GIC rates fluctuate alongside changing interest rates, so always check for the most recent GIC rates. To see GICs available from other banks, check out our article on the Best GIC Rates in Canada.

Oaken Financial Credit Cards

Oaken Financial does not currently offer credit cards or debit cards. As such, banking with Oaken Financial leads to obvious challenges for day-to-day use.

Oaken Financial Ease of Use

Many Canadians now utilize online banking for many of their day-to-day banking and investing needs. Oaken Financial allows you to bank from anywhere, anytime, through the bank’s website or mobile app. You can track transactions, transfer funds, view and update GIC maturity instructions, open new investments, change personal information, access customer service, and view or download statements.

However, lacking chequing accounts, Oaken Financial does not have debit cards or access through ATMs. They do however allow for free and unlimited incoming and outgoing electronic funds transfers. This is the action you’ll have to take if you need to withdraw funds. This is a big drawback for people looking for an all-in-one bank.

For those who prefer a brick-and-mortar bank, there are some limitations depending on where in Canada you live. Those in Vancouver, Calgary, Toronto, and Halifax can visit an Oaken “store” to meet with a service expert. Their store hours are typically 9 am to 4 pm or 5 pm, Monday to Friday. The Halifax store is currently listed as “temporarily closed”.

Customer Service

Oaken Financial offers many ways for customers to get in touch. Their toll-free phone line has representatives available from Monday to Friday 8 am-8 pm EST and Saturday 9 am-5 pm EST. Outside business hours you can leave a message and have your call returned the next business day.

If you’d rather type than talk, they have a live chat with agents from Monday to Friday 10 am-4 pm EST. Alternatively, you can send an email to their dedicated service account.

If you prefer to meet in person and are in Vancouver, Calgary, or Toronto you can book an appointment with Oaken store personnel.

Mobile App

In 2021, Oaken Financial introduced a mobile app called Oaken Digital. It allows you to manage accounts, transfer funds to and from other institutions with your savings account, and view and download statements.

Between Google Play and the Apple Store, there are less than 100 reviews. The app is rated 2.7 stars on Google Play and 2.5 stars on the Apple Store. Many users have trouble logging in. The developer is responsive to the reviews, so we hope they are working behind the scenes to improve the app.

Oaken Financial vs EQ Bank

We consistently recommend EQ Bank as a top choice for Canadians. Let’s take a look at how Oaken Financial stacks up.

High Interest Savings Accounts and GICs are a core feature of both Oaken Financial and EQ Bank. As digital banks, they both have low to no bank fees and leverage this to attract clients. 

Oaken Financial offers slightly higher long-term GIC rates, but this is counteracted by EQ Bank’s recent introduction of the EQ Notice Account. The EQ Notice Account provides clients an interest rate of 5.00% when they give 30 days’ notice for withdrawal. This guaranteed 5.00% interest rate beats every GIC option currently available from Oaken.

EQ Bank is more of an all-around bank than Oaken Financial and has many more account types and products. Their hybrid chequing-savings EQ Personal Account is set up for everyday use and has a pre-paid cash-back bank card. This card can be added to your phone’s payment app to make contactless “tap” payments.

EQ also has superb ease of use with unlimited free withdrawals from any ATM in Canada and unlimited e-transfers. When paycheck auto-deposit is set up with EQ Bank, clients receive an interest rate of 4.00%, higher than Oaken’s 3.40% interest rate. 

In the continued list of EQ Bank offerings, they also have First Home Savings Accounts (FHSAs).

EQ Bank customer service is top-rated by users, as is its highly functional mobile app. For more information about EQ Bank, check out our 2024 EQ Bank Review.

Frequently Asked Questions About Oaken Financial

Oaken Financial Review – Is It a Good Bank?

In summary, Oaken Financial is a good option for people looking to maximize their return on GICs and savings, but don’t need other traditional bank services in the same place. With Oaken Financial you can get some of Canada’s Best GIC Rates for registered and non-registered accounts, all while avoiding monthly fees. However, if you are looking for an all-in-one account with everyday useability including ATM and debit transactions, Oaken Financial will not be suitable for you. 

Our top-rated online bank, EQ Bank, also offers high interest rates but comes with a better platform and many more account options and products. Their new Notice Account is also a solid option for growing your money. In addition, you can withdraw funds from any ATM in Canada, send and receive e-Transfers for free, and use your cash-back bank card or mobile wallet to make purchases.

So, depending on the scope of your needs, Oaken may or may not be the best choice for you. My goal when writing this 2024 Oaken Financial Review, was that in showing you both the perks and limitations of this banking option you can decide whether it’s the best fit for your banking needs.