This year’s interest rates for the new Ontario Savings Bonds have been announced. They are on sale today until June 21, 2002 – for just three weeks.

The five-year Step-Up Bond interest rates are 2.50 % this year, 3.75 % in the second year, 4.50 % in the third year, 5.0% in the fourth year and 5.50 % in the final year. The three-year Fixed-Rate Bond interest rate is 4.625 %, and the seven-year Variable-Rate Bond rate is 2.75 % for the first six months.

The interest rate for the next six months for the 1997 – 2001 Variable-Rate Bonds was also set today – at 2.75 %. This year, 1999 Fixed-Rate Bonds are maturing and purchasers can extend their benefits by exchanging them for 2002 Ontario Savings Bonds.

Ontario residents can buy their bonds directly by telephone or by downloading an application form from the internet. Bonds are also available at banks, trust companies, credit unions, caisses populaires, Province of Ontario Savings Offices and through investment dealers.

Ontario Savings Bonds are available in amounts from $100 to $500,000, and are backed 100 % by the Province of Ontario.