John Manley, Deputy Prime Minister and Minister of Finance, announced details of the New Canada Savings Bonds campaign, including terms and conditions for Canada Premium Bonds and Canada Savings Bonds, which go on sale today.

Series 78 CSB’s, which are on sale for the remainder of the month, will carry a 2% rate as of November 1, 2002. A release from the Department of Finance said the interest rate will be increased “if market conditions warrant.” CSB’s can be cashed anytime, but pay no interest if cashed in the first 90 days.

Even though the Bank of Canada has raised interest rates three times this year, they remain near 40-year lows following nine cuts in 2001.

Manley highlighted key plans and activities for this year’s sales campaign, including greater access to New Canada Savings Bonds and the Payroll Savings Program and continued programming including a national storytelling initiative and a focus on youth.

“Canadians will benefit from this year’s plans to improve access to Canada Premium Bonds and Canada Savings Bonds,” said Manley. “Innovation in the way we offer and sell New Canada Savings Bonds and greater online access ensure that we are keeping up with the ways in which Canadians are choosing to purchase their financial products.”

“Canada Savings Bonds have a long and proud tradition in our country. In fact, many Canadians were first introduced to the concept of saving through the gift of a bond,” said Jacqueline Orange, president and CEO of Canada Investment and Savings. “Since beginning the storytelling initiative, we have received hundreds of heartwarming entries from Canadians right across the country who shared their personal stories about how bonds helped put them on solid ground.”

Manley also announced today that Finance Canada, together with Canada Investment and Savings, the special operating agency responsible for the Retail Debt Program, has implemented a new Internet-based delivery service to provide notification of future interest rates for subsequent bond series. It will no longer issue news releases to announce interest rates following the start of the traditional fall campaign. Instead, effective immediately, persons interested in receiving information about rates may subscribe to an automatic e-mail notification service.

Canadians can purchase CPBs and CSBs directly from the Government online at www.csb.gc.ca, by phone between 8 a.m. and 8 p.m. Eastern Time, Monday to Friday, by calling toll-free at 1 888 773-9999, or wherever they bank or invest.