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| ![]() | Ottawa, January 2, 2001 Rates Announced for Canada Premium Bond Series 18 and Canada Savings Bond Series 69Related document: Secretary of State (International Financial Institutions) Jim Peterson announced interest rates for Canada Premium Bond (CPB) Series 18 and Canada Savings Bond (CSB) Series 69, which go on sale today. CPB Series 18, with an issue date of February 1, 2001, and a 10-year term to maturity, will carry an interest rate of 5.25 per cent for the first year, 5.50 per cent for the second year and 5.75 per cent for the third year. The annual compound rate of return, based on these guaranteed rates, will be 5.49 per cent for a compound interest bond if held for three years. CPBs are redeemable once a year on the anniversary of the issue date and during the 30 days thereafter. CSB Series 69, with an issue date of February 1, 2001, and a 10-year term to maturity, will carry an interest rate of 4.40 per cent for the first year. CSBs can be cashed at any time. Outstanding CSB Series 57 (February 1, 1999) and CSB Series 63 (February 1, 2000) will also carry an interest rate of 4.40 per cent for the year beginning February 1, 2001. CPB Series 18 and CSB Series 69 are available wherever Canadians bank or invest from January 2, 2001, to February 1, 2001. Canadians can also buy CPBs and CSBs, including the RRSP option, directly by calling toll-free 1 888 773-9999 between 8 a.m. and 8 p.m. Eastern Time, Monday to Friday. The next series of CPBs and CSBs, together with the no-fee registered retirement savings plan and registered retirement income fund options, will be on sale February 2, 2001. As in the past, the Minister of Finance reserves the right to terminate sales at any time. ___________________ Media Relations (613) 992-9033 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://www.fin.gc.ca/scripts/register_e.asp. BackgrounderCanada Premium Bond Series 18 and Canada Savings Bond Series 69
Those purchasing bonds between January 2, 2001, and February 1, 2001, will be able to date their payments February 1, 2001, the day Canada Premium Bond (CPB) Series 18 and Canada Savings Bond (CSB) Series 69 start earning interest. Holders of compound interest (C-bond) CPB Series 18 will earn $174.23 for each $1,000 bond held from February 1, 2001, until the end of the third bond year, with an annual compound rate of return of 5.49 per cent. The effective annual yield over the three years for a regular interest (R-bond) CPB Series 18 will be 5.49 per cent based on these guaranteed rates. The interest rates posted for years one, two and three are guaranteed for the periods indicated. Once the issue date has passed, however, these interest rates will not be changed. Holders of CSB Series 69 will earn $44.00 for each $1,000 bond held from February 1, 2001, until the end of the first bond year, with an annual rate of return of 4.40 per cent. The interest rate will be increased if market conditions warrant, but bondholders will not earn less than this guaranteed minimum annual rate during the first year of the bond. CPB Series 18 rates for the remaining seven years to maturity and CSB Series 69 rates for the remaining nine 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 17 will earn the following guaranteed rates of interest for the years indicated.
The rates of interest for Series 2 to 17 for subsequent years to maturity will be announced at future dates. Outstanding Canada Savings Bonds Series 44 to 68CSBs Series 44 to 68 offer the following posted guaranteed minimum rates for the years indicated.
All CSBs issued up to 1988 (Series 1 to 43) have matured and are no longer earning interest. The rates of interest for Series 45 to 68 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 at financial institutions across Canada and on our Web site. ________________ Tel: 1 800 575-5151 (toll-free) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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