Ontario Sets New Annual Savings Bond Interest Rates

0

Secure and flexible investment options are now available to help Ontarians expand their investment portfolio with competitive Ontario Savings Bonds (OSBs) while contributing to Ontario’s growing economy.
Ontario has announced the competitive interest rates for the 2015 issue of Ontario Savings Bonds (OSBs), which are on sale now until June 22, 2015 in a wide range of amounts. Available from as low as $100 to up to $1 million, OSBs provide investment options for investors both large and small.
Because the buyer pays no fees to purchase them and their principal and interest are both fully backed by the province, Ontario Savings Bonds are attractive to investors.
They offer the flexibility of annual or compound interest, with terms of three, five, and 10 years, and fixed, step-up or variable rates. Variable-Rate Bonds can be redeemed annually and Step-Up Bonds are redeemable semi-annually. Fixed-Rate Bonds are not redeemable until maturity.
The interest rates for the 2015 OSBs series are:

The five-year Step-Up Bond interest rates are:

0.75 per cent this year
0.90 per cent in the second year
1.05 per cent in the third year
1.20 per cent in the fourth year
1.35 per cent in the final year

The Fixed-Rate Bonds interest rates are:
0.9 per cent for the three-year Fixed-Rate Bond
2.35 per cent for the 10-year Fixed-Rate Bond

The three-year Variable-Rate Bond interest rate is 0.80 per cent for the first year.
The interest rate on the Variable-Rate Bonds is effective from June 21, 2015 to June 21, 2016. The interest rate on Variable-Rate Bonds for the 2009, 2013 and 2014 series was also reset today at 0.80 per cent and is effective from June 21, 2015 to June 21, 2016.
Offering Ontarians safe, flexible and competitive investment options is part of the government’s plan to build Ontario up. The four-part plan includes investing in people’s talents and skills, making the largest investment in public infrastructure in Ontario’s history, creating a dynamic, innovative environment where business thrives, and building a secure retirement savings plan.