Ontario Finance Minister Greg Sorbara has announced the interest rates for the 2004 Ontario Savings Bonds. The bonds went on sale today.

The five-year Step-Up Bond interest rates are 1.7% this year, 3% in the second year, 3.5% in the third year, 4.5% in the fourth year and 6% in the final year. The three-year Fixed-Rate Bond interest rate is 3.3%, and the seven-year Variable-Rate Bond rate is 1.8% for the first six months. The interest rate for the next six months for the 1998-2003 Variable-Rate Bonds was also set at 1.8%.

Ontario residents can buy their bonds directly by telephone (1-800-433-3596) or by down-loading an application from the Internet. OSBs are also available at banks, trust companies, credit unions, caisses populaires and through investment dealers.

Available until June 18, OSBs are backed 100% by the Government of Ontario. They are sold in amounts from $100 to $500,000.