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Ottawa, November 2, 2001 Rates Announced for Canada Premium Bond Series 22 and Canada Savings Bond Series 73Related document: Secretary of State (International Financial Institutions) Jim Peterson today announced interest rates for Canada Premium Bond (CPB) Series 22 and Canada Savings Bond (CSB) Series 73, which will be on sale from November 2, 2001, to December 1, 2001, inclusive. CPB Series 22, with an issue date of December 1, 2001, and a 10-year term to maturity, will carry an interest rate of 2.00 per cent for the first year, 2.50 per cent for the second year and 4.00 per cent for the third year. The annual compound rate of return, based on these guaranteed rates, will be 2.82 per cent if held for three years. The interest rates posted for years one, two and three are guaranteed and will 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. CPBs are redeemable once a year on the anniversary of the issue date and during the 30 days thereafter. Outstanding CPB Series 4 (December 1, 1998) will carry an interest rate of 2.00 per cent for the bond year beginning December 1, 2001, 2.50 per cent for the bond year beginning December 1, 2002, and 4.00 per cent for the bond year beginning December 1, 2003. CSB Series 73, with an issue date of December 1, 2001, and a 10-year term to maturity, will carry an interest rate of 1.55 per cent for the first year. The interest rate will be increased if market conditions warrant. CSBs can be cashed at any time. Outstanding CSB Series 55 (December 1, 1998), CSB Series 61 (December 1, 1999), and CSB Series 67 (December 1, 2000) will carry an interest rate of 1.55 per cent for the bond year beginning December 1, 2001. CPB Series 22 and CSB Series 73 are available for direct purchase from the Government online at www.csb.gc.ca, or by phone between 8 a.m. and 8 p.m. Eastern Time, Monday to Friday, at 1 888 773-9999. Both bonds are also available with no-fee registered retirement savings plan and registered retirement income fund options wherever Canadians bank or invest. The January 1, 2002, issues of CPBs and CSBs are expected to be available December 2, 2001. As in the past, the Minister of Finance reserves the right to terminate sales at any time. A backgrounder is attached. ___________________ Canada Investment and Savings If you would like to receive automatic e-mail notification of all news releases, please visit the Department of Finance Canada Web site at http://discussion.fin.gc.ca/finealert/alert_e.asp. BackgrounderCanada Premium Bond Series 22 and Canada Savings Bond Series 73
Those purchasing bonds between November 2, 2001, and December 1, 2001, will be able to date their payments December 1, 2001, the day Canada Premium Bond (CPB) Series 22 and Canada Savings Bond (CSB) Series 73 start earning interest. Holders of compound interest (C-bond) CPB Series 22 will earn $87.32 for each $1,000 bond held from December 1, 2001, until the end of the third bond year, with an annual compound rate of return of 2.82 per cent. The effective annual yield over the three years for a regular interest (R-bond) CPB Series 22 will be 2.81 per cent based on these guaranteed rates. The interest rates posted for years one, two and three are guaranteed for the periods indicated and will 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. Holders of CSB Series 73 will earn $15.50 for each $1,000 bond held from December 1, 2001, until the end of the first bond year, with an annual rate of return of 1.55 per cent. The interest rate will be increased if market conditions warrant, but bondholders will not earn less than this guaranteed annual rate during the first year of the bond. CPB Series 22 rates for the remaining seven years to maturity and CSB Series 73 rates for the remaining nine 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 Premium Bonds (Series 1 and Series 2 formerly known as Canada RRSP Bonds)CPBs Series 1 to 21 will earn the following guaranteed rates of interest for the years indicated.
The rates of interest for Series 2 to 21 for subsequent years to maturity will be announced at future dates. Outstanding Canada Savings BondsCSBs Series 45 to 72 will earn the following posted guaranteed minimum rates for the years indicated.
All CSBs issued up to 1989 (Series 1 to 44) have matured and are no longer earning interest. The rates of interest for CSB Series 46 to 72 for subsequent years to maturity will be announced at future dates. Additional information on the terms and conditions of New Canada Savings Bonds is available on our Web site or at financial institutions across Canada. ________________ For further information: Tel: 1 800 575-5151 (toll-free) |
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