2008 Ontario Savings Bonds Rates Announced
Bonds Offer Convenient, Flexible And Secure Investment Options For
Ontarians
TORONTO, June 2 /CNW/ -
NEWS
The Ontario government announced competitive interest rates for the 2008
issue of Ontario Savings Bonds (OSBs), which go on sale today for the next
three weeks.
- The five-year Step-Up Bond interest rates are 2.40 per cent this year,
2.55 per cent in the second year, 2.70 per cent in the third year,
2.85 per cent in the fourth year and 3.70 per cent in the final year
- The three-year Fixed-Rate Bond interest rate is 3.20 per cent
- The seven-year Variable-Rate Bond rate is 2.55 per cent for the first
six months
- The interest rate on Variable-Rate Bonds for the 2002 to 2007 Series
was also reset today at 2.55 per cent. This rate is effective from
June 21 to December 20, 2008.
This year, the 2001 Variable-Rate, 2003 Step-Up and the 2005 Fixed-Rate
Bonds are maturing, and purchasers can extend their benefits by reinvesting in
2008 OSBs.
QUOTES
"When Ontarians invest in Ontario Savings Bonds, we are investing in our
own province," said Finance Minister Dwight Duncan
(http://www.fin.gov.on.ca/english/about/min.html). "OSBs offer a guaranteed
return on investment, while helping build a stronger economy and a more
prosperous Ontario."
QUICK FACTS
- Available only until June 20, OSBs are backed 100 per cent by the
Province of Ontario and they are sold in amounts of $100 up to
$500,000 for small, medium and large investors.
- Only Ontario residents may purchase OSBs.
- OSBs can be purchased from banks, trust companies, credit unions,
caisses populaires and through investment dealers.
LEARN MORE
Visit the OSB website (http://www.ontariosavingsbonds.com/) or call
1-888-212-BOND (2663).
BACKGROUNDER
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2008 ONTARIO SAVINGS BONDS
Over the years, the people of Ontario have come to know the Ontario
Savings Bonds (OSBs), as a safe and secure annual investment that is backed
100 per cent by the Province of Ontario. From June 2 to June 20, OSBs are
available from financial institutions, credit unions, caisses populaires or
investment dealers.
Compared with GICs and term deposits, OSBs offer competitive interest
rates and can be placed into a self-directed Registered Savings Plan.
Available in amounts from $100 to $500,000, OSBs are designed to appeal to all
types of investors. In addition, OSBs can be redeemed in as early as six
months.
OSBs have been on sale annually since 1995. Many Ontarians have chosen
this safe, flexible and competitive investment option that keeps their money
at home in the province where they live, work and raise their families. To
date, about $26 billion in OSBs have been sold.
TYPES OF BONDS
There are three OSB options available for investors to choose from:
- A three-year Fixed Rate Bond with the same rate until maturity
- A five-year Step-Up Bond with an interest rate that escalates every
year
- A seven-year Variable-Rate Bond with an interest rate that is re-set
every six months until maturity.
The Variable and Step-Up bonds can be redeemed every six months.
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Gina Lee 6/2/2008 |
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