(September 29 – 15:15 ET) – Secretary of State (International Financial Institutions) Jim Peterson today announced terms and conditions for the New Canada Savings Bonds, including Canada Premium Bonds (CPBs) and Canada Savings Bonds (CSBs), which go on sale October 2, 2000.
Peterson highlighted key plans and activities for this year’s campaign, including direct telephone sales and new electronic processing options for the new Payroll Savings Program.
Peterson said that that the federal government will continue with the six-month sales pilot offering two bonds at the same time: new CPBs and the original CSBs. This years campaingn runs from October 2 and April 1. Bonds may be purchased through financial institutions or calling 1 888 773-9999.
The CPB will offer a higher rate of interest at the time of issue than the CSB that is on sale at the same time. CPBs can be redeemed once a year on the anniversary of the issue date and during the 30 days thereafter. Once an issue date has passed, the announced interest rates for the posted period will not be changed. The CSB will continue to offer minimum guaranteed annual interest rates, and these rates will be increased if market conditions warrant. CSBs are cashable at any time.
Peterson said that Canada Investment and Savings will also enhance the new Payroll Savings Program to better enable Canadians to purchase CSBs through the workplace. This year’s campaign sees the introduction of new electronic upgrades to enhance service delivery, including an on-line application pilot that enables employees at the Bank of Canada to enrol from their desktops.
“These improvements continue to attract a return of companies to the new Payroll Savings Program. This year, we welcome back General Motors of Canada Limited with their 26,000 employees,” Peterson said.
Interest rates for the November 1, 2000, issues of CPB Series 15 and CSB Series 66, together with outstanding rates for CSB Series 50 (November 1, 1995), CSB Series 54 (November 1, 1998) and CSB Series 60 (November 1, 1999), were also announced today.
CPB Series 15, with a 10-year term to maturity, will carry an interest rate of 5.5% for the first year, 5.7% for the second year and 5.9% for the third year. The annual compound rate of return, based on these guaranteed rates, will be 5.69% for a compound interest bond if held for three years.
CSB Series 66, with a 10-year term to maturity, will carry an interest rate of 4.85% for the first year.
Outstanding CSB Series 50, CSB Series 54 and CSB Series 60 will also carry an interest rate of 4.85% for the year beginning November 1, 2000.
-IE Staff