(January 4 – 10:15 ET) – Interest rates for Canada Premium Bond series 12 and Canada Savings Bond series 63 have been announced by the Department of Finance.
CPB series 12 will be issued February 1 with a 10-year maturity. It will carry an interest rate of 5.00% for the first year, 5.50% for the second year and 6.00% for the third year. Based on these rates the annual compound rate will be 5.49%. CPBs are redeemable once a year on the anniversary of the issue date for 30 days without penalty.
CSB series 63, also issued for 10 years on February 1, will pay 4.40% for the first year. The outstanding CSB series 57 will pay the same rate in the year beginning Feb. 1. CSBs can be cashed at any time.
The new bonds go on sale today until Feb. 1. The government expects to issue two more consecutive monthly series of each bond until April 1, 2000. The interest rates for these future series will be announced when they go on sale.