7, 2008
2008-073

Archived - Canada Savings Bonds and Canada Premium Bonds Rates Announced

Archived information

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The Department of Finance today announced interest rates for Canada Savings Bond (CSB) Series 114 and Canada Premium Bond (CPB) Series 64, which will be on sale Friday, October 10, 2008 until November 1, 2008, inclusive.

For a $1,000 bond, CSB Series 114 and CPB Series 64, with 10-year terms to maturity, will carry interest rates as follows:


 

Canada Savings Bond
Series 114

Canada Premium Bond
Series 64

 

Interest rates for year beginning

Annual interest rate

Average annual rate of return if held to November 1 of the following year

Annual interest rate

Average annual compound rate of return if held to November 1 of the following year


Nov. 1, 2008

2.00%

2.00%

2.35%

2.35%

Nov. 1, 2009

TBA

TBA

2.50%

2.42%

Nov. 1, 2010

TBA

TBA

2.65%

2.50%


CSB Series 114 and CPB Series 64, 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 114 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 the then prevailing market conditions.

Outstanding Series Extended

The Department also announced that the maturity date of November 1, 2008 on CSB Series 51 (November 1, 1996), CSB Series 54 (November 1, 1998), and CPB Series 3 (November 1, 1998) has been extended to November 1, 2018.

Outstanding Series Repriced

The outstanding Canada Savings Bond Series listed below will carry the same rate as those announced for Canada Savings Bond Series 114, for the bond year November 1 2008 to October 31, 2009.

Series 46
(November 1, 1991)
Series 54
(November 1, 1998)
Series 96
(November 1, 2005)
Series 47
(November 1, 1992)
Series 60
(November 1, 1999)
Series 102
(November 1, 2006)
Series 48
(November 1, 1993)
Series 66
(November 1, 2000)
Series 108
(November 1, 2007)
Series 49
(November 1, 1994)
Series 72
(November 1, 2001)
 
Series 50
(November 1, 1995)
Series 78
(November 1, 2002)
 
Series 51
(November 1, 1996)
Series 84
(November 1, 2003)
 
Series 52
(November 1, 1997)
Series 90
(November 1, 2004)
 

The outstanding Canada Premium Bond Series listed below will carry the same rate as that announced for Canada Premium Bond Series 64 for the bond years indicated.


Series

Issuance Date

Carries Series 64 Rate from…


Series 3

November 1, 1998

November 1, 2008 to October 31, 2011

Series 15

November 1, 2000

November 1, 2008 to October 31, 2010

Series 34

November 1, 2003

November 1, 2008 to October 31, 2011

Series 46

November 1, 2005

November 1, 2008 to October 31, 2011


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 at www.csb.gc.ca/enews.htm. Those who already subscribe to the e-newsletter service are not required to reregister to receive these automatic notifications.

The December 1, 2008, Series of the CSB and the CPB are expected to be on sale November 2, 2008. As in the past, the Minister of Finance reserves the right to terminate sales at any time.

___________________________________
For further information, media may contact:

David Gamble
Media Relations
Department of Finance
613-996-8080
Jeremy Harrison
Bank of Canada
613-782-8782

To receive e-mail notification of all news releases, please register at http://www.fin.gc.ca/scripts/register-eng.asp.