2008 Ontario Savings Bonds Rates Announced



    Bonds Offer Convenient, Flexible And Secure Investment Options For
    Ontarians

    TORONTO, June 2 /CNW/ -

    NEWS

    The Ontario government announced competitive interest rates for the 2008
issue of Ontario Savings Bonds (OSBs), which go on sale today for the next
three weeks.

    
    -  The five-year Step-Up Bond interest rates are 2.40 per cent this year,
       2.55 per cent in the second year, 2.70 per cent in the third year,
       2.85 per cent in the fourth year and 3.70 per cent in the final year

    -  The three-year Fixed-Rate Bond interest rate is 3.20 per cent

    -  The seven-year Variable-Rate Bond rate is 2.55 per cent for the first
       six months

    -  The interest rate on Variable-Rate Bonds for the 2002 to 2007 Series
       was also reset today at 2.55 per cent. This rate is effective from
       June 21 to December 20, 2008.
    

    This year, the 2001 Variable-Rate, 2003 Step-Up and the 2005 Fixed-Rate
Bonds are maturing, and purchasers can extend their benefits by reinvesting in
2008 OSBs.

    QUOTES

    "When Ontarians invest in Ontario Savings Bonds, we are investing in our
own province," said Finance Minister Dwight Duncan
(http://www.fin.gov.on.ca/english/about/min.html). "OSBs offer a guaranteed
return on investment, while helping build a stronger economy and a more
prosperous Ontario."

    QUICK FACTS

    
    -  Available only until June 20, OSBs are backed 100 per cent by the
       Province of Ontario and they are sold in amounts of $100 up to
       $500,000 for small, medium and large investors.

    -  Only Ontario residents may purchase OSBs.

    -  OSBs can be purchased from banks, trust companies, credit unions,
       caisses populaires and through investment dealers.
    

    LEARN MORE

    Visit the OSB website (http://www.ontariosavingsbonds.com/) or call
    1-888-212-BOND (2663).

    Calculate (http://www.ontariosavingsbonds.com/calculator.asp) how OSBs
    could help your investments grow.

    
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    BACKGROUNDER
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                         2008 ONTARIO SAVINGS BONDS
    

    Over the years, the people of Ontario have come to know the Ontario
Savings Bonds (OSBs), as a safe and secure annual investment that is backed
100 per cent by the Province of Ontario. From June 2 to June 20, OSBs are
available from financial institutions, credit unions, caisses populaires or
investment dealers.
    Compared with GICs and term deposits, OSBs offer competitive interest
rates and can be placed into a self-directed Registered Savings Plan.
Available in amounts from $100 to $500,000, OSBs are designed to appeal to all
types of investors. In addition, OSBs can be redeemed in as early as six
months.
    OSBs have been on sale annually since 1995. Many Ontarians have chosen
this safe, flexible and competitive investment option that keeps their money
at home in the province where they live, work and raise their families. To
date, about $26 billion in OSBs have been sold.

    TYPES OF BONDS

    There are three OSB options available for investors to choose from:

    
    -  A three-year Fixed Rate Bond with the same rate until maturity
    -  A five-year Step-Up Bond with an interest rate that escalates every
       year
    -  A seven-year Variable-Rate Bond with an interest rate that is re-set
       every six months until maturity.
    

    The Variable and Step-Up bonds can be redeemed every six months.

    FURTHER INFORMATION

    Call toll-free 1-888-212-BOND (2663) or visit
www.ontariosavingsbonds.com.

    
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                                                     ontario.ca/finance-news
                                                      Disponible en français
    





For further information:

For further information: Gina Lee, Minister's Office, (416) 325-4694;
Scott Blodgett, Ministry of Finance, (416) 325-0324

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