Ontario Savings Bonds, starting at $100 only, on sale until June 21

ontariobondsStarting today, Ontario Savings Bonds (OSBs) are on sale until June 21, 2016.

OSBs are safe and flexible investment options, fully backed by the province, and start as low as $100, going up to $1 million. Available to all Ontarians, they offer the opportunity to start or expand investment portfolios while investing in the province and contributing to Ontario’s growing economy.

These retail bonds offer the flexibility of annual or compound interest, with terms of three, five, and 10 years, and fixed, step-up or variable rates. Variable-Rate Bonds can be redeemed annually and Step-Up Bonds are redeemable semi-annually. Fixed-Rate Bonds are not redeemable until maturity.

The interest rates for the 2016 OSBs series are:

Five-year Step-Up Bond :

  • 0.60 per cent this year
  • 0.75 per cent in the second year
  • 1.00 per cent in the third year
  • 1.25 per cent in the fourth year
  • 1.50 per cent in the fifth year

Fixed-Rate Bonds :

  • 1.00 per cent for the three-year Fixed-Rate Bond
  • 2.20 per cent for the 10-year Fixed-Rate Bond
  • Three-year Variable-Rate Bond interest rate is 0.65 per cent for the first year.

The interest rate on the Variable-Rate Bonds is effective from June 21, 2016 to June 20, 2017. The interest rate on Variable-Rate Bonds for the 2014 and 2015 series was also reset today at 0.65 per cent and is effective from June 21, 2016 to June 20, 2017.

  • OSBs are attractive to investors because the buyer pays no fees to purchase them and their principal and interest are both fully backed by the province.
  • Only Ontario residents can purchase OSBs through banks, trust companies, credit unions, caisses populaires and investment dealers.
  • OSBs support education, health care and infrastructure initiatives across Ontario.
  • OSB interest rates are based on current economic conditions and market trends. – CINEWS

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