Ottawa, October 3, 2005
2005-064

Archived - Canada Savings Bonds Rates Announced

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The Department of Finance today announced interest rates for the Canada Savings Bond (CSB) Series 96 and the Canada Premium Bond (CPB) Series 46, which are on sale from today until November 1, 2005, inclusive.

CSB Series 96, with an issue date of November 1, 2005, and a 10-year term to maturity, will carry an interest rate of 2.00 per cent for the first year that may be increased if market conditions warrant. The CSB can be cashed at any time.

The Department also announced today that the maturity date of November 1, 2005, on CSB Series 48 (November 1, 1993) has been extended to November 1, 2015.

Outstanding CSB Series 46 (November 1, 1991), CSB Series 47 (November 1, 1992), CSB Series 48 (November 1, 1993), CSB Series 49 (November 1, 1994), CSB Series 50 (November 1, 1995), CSB Series 52 (November 1, 1997), CSB Series 54 (November 1, 1998), CSB Series 60 (November 1, 1999), CSB Series 66 (November 1, 2000), CSB Series 72 (November 1, 2001), CSB Series 78 (November 1, 2002), CSB Series 84 (November 1, 2003), and CSB Series 90 (November 1, 2004) will carry the same rate as that announced for CSB Series 96 for the bond year November 1, 2005, to October 31, 2006.

CPB Series 46, with an issue date of November 1, 2005, and a 10-year term to maturity, will carry an interest rate of 2.25 per cent for the first year, rising to 2.50 per cent for the second year and 2.75 per cent for the third year. The annual compound rate of return, based on these guaranteed rates, will be 2.49 per cent if held for the three years. The 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.

CSB Series 96 and CPB Series 46, together with their no-fee retirement savings plan option, 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. Non-certificated CSB Series 96 and CPB Series 46 are available from authorized investment dealers. The December 1, 2005, series of the CSB and the CPB are expected to be available November 2, 2005.

Persons interested in receiving interest rate information about subsequent series of 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 at www.csb.gc.ca/enews.htm

Those who already subscribe to the e-newsletter service are not required to re-register to receive these automatic notifications.

As in the past, the Minister of Finance reserves the right to terminate sales at any time.

A backgrounder is attached.

___________________
For further information:

Canada Investment and Savings
Media Relations
(613) 996-0748

If you would like to receive automatic e-mail notification of all news releases, please visit the Department of Finance Canada website at www.fin.gc.ca/scripts/register-eng.asp


Backgrounder

Canada Savings Bond Series 96 and Canada Premium Bond Series 46


Canada Savings Bond
Series 96
Canada Premium Bond
Series 46
Interest rates for year beginning Annual interest rate Annual compound rate of return if held to November 1 of the following year Annual interest rate Annual compound rate of return if held to November 1 of the following year

Nov. 1, 2005 2.00% 2.00% 2.25% 2.25%
Nov. 1, 2006 TBA TBA 2.50% 2.37%
Nov. 1, 2007 TBA TBA 2.75% 2.49%

Those purchasing bonds between October 3, 2005, and November 1, 2005, will be able to date their payment November 1, 2005, the day the Canada Savings Bond (CSB) Series 96 and the Canada Premium Bond (CPB) Series 46 start earning interest.

Holders of compound interest (C-bond) CSB Series 96 will earn $20.00 for each $1,000 bond held from November 1, 2005, until the end of the first bond year, with an annual compound rate of return of 2.00 per cent that may be increased if market conditions warrant.

Holders of compound interest (C-bond) CPB Series 46 will earn $76.88 for each $1,000 bond held from November 1, 2005, until the end of the third bond year, with an annual compound rate of return of 2.49 per cent. The effective annual yield over the three years for a regular interest (R-bond) CPB Series 46 will be 2.49 per cent based on these guaranteed rates. The interest rates posted for years one through three are guaranteed for the periods indicated and may be increased up until the issue date if market conditions warrant. Once the issue date has passed, however, these interest rates will not be changed.

CSB Series 96 rates for the remaining nine years to maturity and CPB Series 46 rates for the remaining seven years to maturity will be announced at future dates.

As in the past, the Minister of Finance reserves the right to terminate sales at any time.

Outstanding Canada Savings Bonds

CSB Series 46 to 96 will earn the following posted minimum guaranteed rates for the years indicated.


Series Interest rate for the year beginning on the series issue date or anniversary date indicated
2003 2004 2005 2006 2007 2008 2009 2010

S96 (Nov 1, 2005) -- -- 2.00% TBA
S95 (Apr. 1, 2005) -- -- 1.55% TBA
S94 (Mar. 1, 2005) -- -- 1.55% TBA
S93 (Feb. 1, 2005 -- -- 1.55% TBA
S92 (Jan. 1, 2005) -- -- 1.65% TBA
S91 (Dec. 1, 2004) -- 1.50% TBA
S90 (Nov. 1, 2004) -- 1.50% 2.00% TBA
S89 (Apr. 1, 2004) -- 1.25% 1.55% TBA
S88 (Mar. 1, 2004) -- 1.30% 1.55% TBA
S87 (Feb. 1, 2004) -- 1.55% 1.55% TBA
S86 (Jan. 1, 2004) -- 1.65% 1.65% TBA
S85 (Dec. 1, 2003) 1.65% 1.50% TBA
S84 (Nov. 1, 2003) 1.75% 1.50% 2.00% TBA
S83 (Apr. 1, 2003) 2.00% 1.25% 1.55% TBA
S82 (Mar. 1, 2003) 2.00% 1.30% 1.55% TBA
S81 (Feb. 1, 2003) 2.00% 1.55% 1.55% TBA
S80 (Jan. 1, 2003) 2.00% 1.65% 1.65% TBA
S79 (Dec. 1, 2002) 1.65% 1.50% TBA
S78 (Nov. 1, 2002) 1.75% 1.50% 2.00% TBA
S77 (Apr. 1, 2002) 2.75% 4.00% 1.55% TBA
S76 (Mar. 1, 2002) 2.75% 4.00% 1.55% TBA
S75 (Feb. 1, 2002) 2.00% 1.55% 1.55% TBA
S74 (Jan. 1, 2002) 2.00% 1.65% 1.65% TBA
S73 (Dec. 1, 2001) 1.65%% 1.50% TBA
S72 (Nov. 1, 2001) 1.75% 1.50% 2.00% TBA
S71 (Apr. 1, 2001) 2.75% 4.00% 1.55% TBA
S70 (Mar. 1, 2001) 2.75% 4.00% 1.55% TBA
S69 (Feb. 1, 2001) 2.00% 1.55% 1.55% TBA
S68 (Jan. 1, 2001) 2.00% 1.65% 1.65% TBA
S67 (Dec. 1, 2000) 1.65% 1.50% TBA Maturing
S66 (Nov. 1, 2000) 1.75% 1.50% 2.00% TBA Maturing
S65 (Apr. 1, 2000) 2.75% 4.00% 1.55% TBA Maturing
S64 (Mar. 1, 2000) 2.75% 4.00% 1.55% TBA Maturing
S63 (Feb. 1, 2000) 2.00% 1.55% 1.55% TBA Maturing
S62 (Jan. 1, 2000) 2.00% 1.65% 1.65% TBA Maturing
S61 (Dec. 1, 1999) 1.65% 1.50% TBA Maturing
S60 (Nov. 1, 1999) 1.75% 1.50% 2.00% TBA Maturing
S59 (Apr. 1, 1999) 2.75% 4.00% 1.55% TBA Maturing
S58 (Mar. 1, 1999) 2.75% 4.00% 1.55% TBA Maturing
S57 (Feb. 1, 1999) 2.00% 1.55% 1.55% TBA Maturing
S56 (Jan. 1, 1999) 2.00% 1.65% 1.65% TBA Maturing
S55 (Dec. 1, 1998) 1.65% 1.50% TBA Maturing
S54 (Nov. 1, 1998) 1.75% 1.50% 2.00% TBA Maturing
S53 (Dec. 1, 1997) 6.50% 1.50% TBA Maturing
S52 (Nov. 1, 1997) 6.50% 1.50% 2.00% TBA Maturing
S51 (Nov. 1, 1996) 7.25% 8.00% 8.75% TBA Maturing
S50 (Nov. 1, 1995) 1.75% 1.50% 2.00% TBA Maturing
S49 (Nov. 1, 1994) 1.75% 1.50% 2.00% Maturing
S48 (Nov. 1, 1993) 1.75% 1.50% 2.00% TBA
S47 (Nov. 1, 1992) 1.75% 1.50% 2.00% TBA
S46 (Nov. 1, 1991) 1.75% 1.50% 2.00% TBA

All CSBs issued up to 1990 (Series 1 to 45) have matured and are no longer earning interest. The maturity date of November 1, 2005, on CSB Series 48 (November 1, 1993) has been extended to November 1, 2015, and will continue to earn interest at the rate indicated in the above chart for the bond year beginning November 1, 2005, and ending October 31, 2006.

The rates of interest for CSB Series 46, 47, 48 and 50 to 96 for subsequent years to maturity will be announced at future dates.

Outstanding Canada Premium Bonds (Series 1 and Series 2 formerly known as Canada RRSP Bonds)

CPBs Series 1 to 46 will earn the following guaranteed rates of interest for the years indicated.


Series Interest rate for the year beginning on the series issue date or anniversary date indicated
2003 2004 2005 2006 2007 2008 2009 2010

P46 (Nov. 1, 2005) -- -- 2.25% 2.50% 2.75% TBA
P45 (Apr. 1, 2005) -- -- 2.00% 2.30% 2.60% TBA
P44 (Mar. 1, 2005) -- -- 2.00% 2.30% 2.60% TBA
P43 (Feb. 1, 2005) -- -- 2.00% 2.30% 2.60% TBA
P42 (Jan. 1, 2005) -- -- 2.00% 2.50% 3.20% TBA
P41 (Dec. 1, 2004) -- 1.85% 2.45% 3.40% TBA
P40 (Nov. 1, 2004) -- 1.85% 2.45% 3.40% TBA
P39 (Apr. 1, 2004) -- 2.00% 2.25% 2.50% 3.25% 4.00% TBA
P38 (Mar. 1, 2004) -- 2.25% 2.50% 3.00% 3.50% 4.00% TBA
P37 (Feb. 1, 2004) -- 2.25% 2.65% 3.00% 3.50% 5.00% TBA
P36 (Jan. 1, 2004) -- 2.35% 2.75% 3.00% 4.00% 5.50% TBA
P35 (Dec. 1, 2003) 2.35% 2.75% 3.00% 4.00% 5.50% TBA
P34 (Nov. 1, 2003) 2.45% 2.80% 3.00% 3.50% 5.00% TBA
P32 (Apr. 1, 2003) 2.50% 3.00% 3.50% 4.25% 5.00% TBA
P31 (Mar. 1, 2003) 2.50% 3.00% 3.50% 4.25% 5.00% TBA
P33 (Feb. 1, 2003) 2.50% 3.00% 3.50% 4.25% 5.00% TBA
P30 (Feb. 1, 2003) 2.50% 3.00% 4.00% 4.85% 6.00% TBA
P29 (Jan. 1, 2003) 2.50% 3.00% 4.00% 4.85% 6.00% TBA
P28 (Dec. 1, 2002) 3.00% 4.00% 4.85% 6.00% TBA
P27 (Nov. 1, 2002) 3.00% 4.00% 4.85% 6.00% TBA
P26 (Apr. 1, 2002) 3.00% 4.25% 4.75% 6.00% TBA
P25 (Mar. 1, 2002) 3.00% 4.25% 4.75% 6.00% TBA
P24 (Feb. 1, 2002) 2.70% 3.50% 2.00% 2.30% 2.60% TBA
P23 (Jan. 1, 2002) 2.70% 3.50% 2.00% 2.50% 3.20% TBA
P22 (Dec. 1, 2001) 4.00% 1.85% 2.45% 3.40% TBA
P21 (Nov. 1, 2001) 4.00% 1.85% 2.45% 3.40% TBA
P20 (Apr. 1, 2001) 4.55% 2.00% 2.25% 2.50% 3.25% 4.00% TBA
P19 (Mar. 1, 2001) 4.55% 2.25% 2.50% 3.00% 3.50% 4.00% TBA
P18 (Feb. 1, 2001) 5.75% 2.25% 2.65% 3.00% 3.50% 5.00% TBA
P17 (Jan. 1, 2001) 5.90% 2.35% 2.75% 3.00% 4.00% 5.50% TBA
P16 (Dec. 1, 2000) 2.35% 2.75% 3.00% 4.00% 5.50% TBA Maturing
P15 (Nov. 1, 2000) 2.45% 2.80% 3.00% 3.50% 5.00% TBA Maturing
P14 (Apr. 1, 2000) 2.50% 3.00% 3.50% 4.25% 5.00% TBA Maturing
P13 (Mar. 1, 2000) 2.50% 3.00% 3.50% 4.25% 5.00% TBA Maturing
P12 (Feb. 1, 2000) 2.50% 3.00% 4.00% 4.85% 6.00% TBA Maturing
P11 (Jan. 1, 2000) 2.50% 3.00% 4.00% 4.85% 6.00% TBA Maturing
P10 (Dec. 1, 1999) 3.00% 4.00% 4.85% 6.00% TBA Maturing
P9 (Nov. 1, 1999) 3.00% 4.00% 4.85% 6.00% TBA Maturing
P8 (Apr. 1, 1999) 3.00% 4.25% 4.75% 6.00% TBA Maturing
P7 (Mar. 1, 1999) 3.00% 4.25% 4.75% 6.00% TBA Maturing
P6 (Feb. 1, 1999) 2.70% 3.50% 2.00% 2.30% 2.60% TBA Maturing
P5 (Jan. 1, 1999) 2.70% 3.50% 2.00% 2.50% 3.20% TBA Maturing
P4 (Dec. 1, 1998) 4.00% 1.85% 2.45% 3.40% TBA Maturing
P3 (Nov. 1, 1998) 4.00% 1.85% 2.45% 3.40% TBA Maturing
P2 (Apr. 1, 1998) 4.55% 2.00% 2.25% 2.50% 3.25% Maturing
P2 (Mar. 1, 1998) 4.55% 2.25% 2.50% 3.00% 3.50% Maturing
P1 (Apr. 1, 1997) 6.75% 7.00% 7.50% 8.50% Maturing
P1 (Mar. 1, 1997) 6.75% 7.00% 7.50% 8.50% Maturing

The rates of interest for Series 3 to 46 for subsequent years to maturity will be announced at future dates.

Additional information on the terms and conditions of the CSB and the CPB is available on our website at www.csb.gc.ca or at financial institutions across Canada.

____________________
For further information:

Tel: 1 800 575-5151 (toll-free)
TTY: 1 800 354-2222 (toll-free)
Fax: (613) 782-7716
E-mail: csb@csb.gc.ca
Website: www.csb.gc.ca