Home Capital’s Oaken Financial is offering substantially higher rates on a five-year registered GIC, according to data released on Thursday by mortgage rate website ratehub.ca.

The company’s 3.25 per cent return rate could net investors an extra $300 on a $5,000 investment when compared to the second-highest offered rate.

 

5-year registered GIC rates

INSTITUTION RATE RETURN ON $5,000
Oaken Financial  3.25 %  $813 
PC Financial  2.00 %  $500 
Tangerine  2.00 %  $500 
Manulife Financial  1.90 %  $475 
RBC Royal Bank  1.60 %  $400 
TD Bank  1.50 %  $375
National Bank  1.50 %   $375 
 Bank of Montreal 1.50 %  $375
 CIBC 1.25 %   $313 
Scotiabank  1.25 %   $313 

The data – released the same day Home Capital (HCG.TO) announced a $2-billion loan from Warren Buffett’s Berkshire Hathaway (BRKa.N) – highlights Home Capital’s efforts to rebuild investors’ trust.

“This is an attempt, along with the investment from Buffett, to give Canadians confidence that they’re depositing money with a safe and reputable company,” RateHub’s co-founder James Laird told BNN.ca.

“It’s business as usual at the larger banks and the smaller banks. They don’t have a crisis of confidence with their banks and with their brands, so there’s no need for them to price well above market, whereas Home Capital… they’ve been in a very precarious position for the last 30 days or so which means that Canadians are certainly pausing before they deposit money there.”