The Department of Finance today announced interest rates for Canada Savings Bond (CSB) Series 120 and Canada Premium Bond (CPB) Series 70, which will be on sale October 5, 2009 until November 1, 2009, inclusive.
For a $1,000 bond, CSB Series 120 and CPB Series 70, with 10-year terms to maturity, will carry interest rates as follows:
CSB Series 120 and CPB Series 70, together with their no-fee retirement plan options, are available for purchase online at www.csb.gc.ca , by phone toll-free at 1-888-773-9999 (Monday to Friday, 8 a.m. to 8 p.m. Eastern Time), or wherever Canadians bank or invest in Canada. CSB Series 120 is also available to employees of approximately 12,000 employers across Canada through the Payroll Savings Program.
About the Rates
The CSB interest rate, posted for a one-year period, is guaranteed and may be increased during this period if market conditions warrant. CSBs can be cashed at any time.
The CPB interest rates, posted for years one through three, are guaranteed and may be increased up until the issue date if market conditions warrant. Once the issue date has passed, no changes to the posted interest rates will be made. The CPB is redeemable once a year on the anniversary of the issue date and during the 30 days thereafter.
Canadians should be aware that while the CSB and the CPB have a 10-year term to maturity, interest rates are typically announced for a shorter period and remain in effect for that announced period. At the end of that period, new rates will be announced by the Minister of Finance based on prevailing market conditions.
Outstanding Series Extended
The Department also announced that the maturity date of November 1, 2009 on CSB Series 60 (November 1, 1999) and CPB Series 9 (November 1, 1999) has been extended to November 1, 2019.
Outstanding Series Repriced
The outstanding Canada Savings Bond Series listed below will carry the same rate as those announced for Canada Savings Bond Series 120, for the bond year November 1, 2009 to October 31, 2010.
The outstanding Canada Premium Bond Series listed below will carry the same rate as that announced for Canada Premium Bond Series 70 for the bond years indicated.
Further details on the terms and conditions of the CSB and CPB are available at www.csb.gc.ca .
Persons interested in receiving interest rate information for the CSB and the CPB may enquire at financial institutions, visit www.csb.gc.ca , call toll-free at 1-800-575-5151, or subscribe to an automatic e-mail notification service through the "E-Newsletter Sign Up" link found on the main page of the www.csb.gc.ca website. Those who already subscribe to the e-newsletter service are not required to reregister to receive these automatic notifications.
The December 1, 2009, Series of the CSB and the CPB are expected to be on sale November 2, 2009. As in the past, the Minister of Finance reserves the right to terminate sales at any time.
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For further information, media may contact:
Jack Aubry
Media Relations
Department of Finance
613-996-8080
Jeremy Harrison
Bank of Canada
613-782-8782
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