The Ontario government announced last week the interest rate for the Variable-Rate Ontario Savings Bonds (OSBs) will be re-set at 1.00 percent for the next six months.
The rate reset applies to Variable-Rate Bonds purchased from 2005-08.
The next rate reset will occur on June 21, 2012 and will be reset semi-annually until maturity.
This update does not affect the Fixed-Rate and Step-Up Ontario Savings Bonds, nor the Variable-Rate Bonds issued after 2009.
“Investing in Ontario Savings Bonds provides Ontarians with a secure and flexible investment option that helps support services important to families, like health care and education,” said Finance minister Dwight Duncan.
“They are fully guaranteed, and help the government make the smart investments that strengthen our economy and create jobs,” he noted.
Both principal and interest are backed 100 percent by the Province of Ontario.
Only Ontario residents may purchase OSBs.
Ontario Savings Bonds are available in three types: Fixed-Rate, Step-Up Rate, and Variable-Rate with annual or compound interest.
Ontarians may purchase OSBs during the first three weeks of June from participating banks, trust companies, credit unions, caisses populaires, and through investment dealers.
They are available in amounts ranging from $100 up to $1,000,000.