When purchasing a GIC through Oak Tree Financial, we are serving as registered deposit brokers, and instead of purchasing an “In-house” product, we are sourcing rates from our large network of banks and credit unions.. We serve as a way to connect you with the top banks or credit unions to find you the best rates, and we are able to cast a wider net to access banks and credit unions across Ontario and the rest of Canada
Are your GIC’s guaranteed.
Yes - Every GIC that we offer is covered by various federally or provincially regulated deposit insurance programs, including but not limited to the CDIC (Banks) or FSRA (Credit Unions)
What are the guarantee Maximums?
CDIC coverage covers deposits up to $100,000, and FSRA up to $250,000. This will include principal AND interest. See links below:
Protecting your deposits - cdic.ca
Deposit insurance overview | Financial Services Regulatory Authority of Ontario (fsrao.ca)
What if my investment is over the eligible guaranteed amount?
Because we have access to over 100 banks and credit unions, we can easily work with our clients to find the best way to separate the investment between different institutions to obtain the highest rate, while ensuring that the investment remains guaranteed.
Should I purchase a GIC in a TFSA or in a non-registered account?
GIC’s within a TFSA may have a lower rate, but after tax, it may be beneficial to earn slightly less tax free interest rate, instead of paying tax on a higher rate. We can help you to determine if this is beneficial for your situation.
(There are other tax and estate planning benefits of holding a GIC within a TFSA to structure a low-risk and guaranteed portion of your estate plan.)