Government of Canada - Department of Finance
Skip all menus (access key: 2) Skip first menu (access key: 1)
Menu (access key: M)
Budget Information
Economic & Fiscal Information
Financial Institutions and Markets
International Issues
Social Issues
Taxes & Tariffs
Transfer Payments to Provinces
Media Room - News Releases
FTP SiteNotices to MediaSpeeches

Ottawa, October 5, 2001
2001-085 

Rates Announced for Canada Premium Bond Series 21 and Canada Savings Bond Series 72

Related Document:


Secretary of State (International Financial Institutions) Jim Peterson today announced interest rates for Canada Premium Bond (CPB) Series 21 and Canada Savings Bond (CSB) Series 72, which will be on sale from October 9, 2001, up to and including November 1, 2001.

CPB Series 21, with an issue date of November 1, 2001, and a 10-year term to maturity, will carry an interest rate of 2.30 per cent for the first year, 2.80 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 3.03 per cent 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 72, with an issue date of November 1, 2001, and a 10-year term to maturity, will carry an interest rate of 1.80 per cent for the first year. CSBs can be cashed at any time.

Outstanding CPB Series 3 (November 1, 1998) will carry an interest rate of 2.30 per cent for the bond year beginning November 1, 2001, 2.80 per cent for the bond year beginning November 1, 2002, and 4.00 per cent for the bond year beginning November 1, 2003.

Outstanding CSB Series 45 (November 1, 1990), 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 54 (November 1, 1998), CSB Series 60 (November 1, 1999) and CSB Series 66 (November 1, 2000) will carry an interest rate of 1.80 per cent for the bond year beginning November 1, 2001.

CSB Series 44 (November 1, 1989) matures on November 1, 2001, and following that date will no longer earn interest.

CPB Series 21 and CSB Series 72, together with the no-fee registered retirement savings plan (RRSP) option, 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 RRSP and registered retirement income fund options wherever Canadians bank or invest.

The next series of CPBs and CSBs are expected to be available November 2, 2001.

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) 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://discussion.fin.gc.ca/finealert/alert_e.asp


Backgrounder

Canada Premium Bond Series 21 and Canada Savings Bond Series 72


 

Canada Premium Bond
Series 21

Canada Savings Bond
Series 72

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


Nov. 1, 2001

2.30%

2.30%

1.80%

1.80%

Nov. 1, 2002

2.80%

2.54%

TBA

TBA

Nov. 1, 2003

4.00%

3.03%

TBA

TBA


Those purchasing bonds between October 9, 2001, and November 1, 2001, will be able to date their payments November 1, 2001, the day Canada Premium Bond (CPB) Series 21 and Canada Savings Bond (CSB) Series 72 start earning interest.

Holders of compound interest (C-bond) CPB Series 21 will earn $93.71 for each $1,000 bond held from November 1, 2001, until the end of the third bond year, with an annual compound rate of return of 3.03 per cent. The effective annual yield over the three years for a regular interest (R-bond) CPB Series 21 will be 3.01 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 72 will earn $18.00 for each $1,000 bond held from November 1, 2001, until the end of the first bond year, with an annual rate of return of 1.80 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.

CSB Series 44 issued in 1989 matures on November 1 of this year, and following that date will no longer earn interest. To facilitate the purchase of CPB Series 21 and CSB Series 72 issues that go on sale October 9, 2001, bondholders may present their maturing bonds where they bank or invest on or before November 1, 2001.

CPB Series 21 rates for the remaining seven years to maturity and CSB Series 72 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 20 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


2000

2001

2002

2003

2004

2005

2006

2007

P20 (Apr. 1, 2001)

4.35%

4.45%

4.55%

TBA

P19 (Mar. 1, 2001)

4.35%

4.45%

4.55%

TBA

P18 (Feb. 1, 2001)

5.25%

5.50%

5.75%

TBA

P17 (Jan. 1, 2001)

5.50%

5.70%

5.90%

TBA

P16 (Dec. 1, 2000)

5.50%

5.70%

5.90%

TBA

P15 (Nov. 1, 2000)

5.50%

5.70%

5.90%

TBA

P14 (Apr. 1, 2000)

5.25%

5.75%

6.25%

TBA

P13 (Mar. 1, 2000)

5.25%

5.75%

6.25%

TBA

P12 (Feb. 1, 2000)

5.00%

5.50%

6.00%

TBA

P11 (Jan. 1, 2000)

5.00%

5.40%

5.80%

TBA

P10 (Dec. 1, 1999)

5.40%

5.80%

TBA

P9 (Nov. 1, 1999)

5.40%

5.80%

TBA

P8 (Apr.1, 1999)

4.75%

5.25%

TBA

P7 (Mar. 1, 1999)

4.50%

5.00%

TBA

P6 (Feb. 1, 1999)

4.25%

4.75%

TBA

P5 (Jan. 1, 1999)

4.25%

4.50%

TBA

P4 (Dec. 1, 1998)

4.50%

TBA

P3 (Nov. 1, 1998)

5.00%

2.30%

2.80%

4.00%

TBA

P2 (Apr.1, 1998)

4.75%

4.35%

4.45%

4.55%

TBA

P2 (Mar. 1, 1998)

4.75%

4.35%

4.45%

4.55%

TBA

P1 (Apr.1, 1997)

6.00%

6.25%

6.50%

6.75%

7.00%

7.50%

8.50%

Maturing

P1 (Mar. 1, 1997)

6.00%

6.25%

6.50%

6.75%

7.00%

7.50%

8.50%

Maturing


The rates of interest for Series 2 to 20 for subsequent years to maturity will be announced at future dates.

Outstanding Canada Savings Bonds

CSBs Series 45 to 71 will earn the following posted guaranteed minimum rates for the years indicated.


Series

Interest rate for the year beginning on the series issue date or anniversary date indicated


2000

2001

2002

2003

2004

2005

2006

2007

S71 (Apr. 1, 2001)

3.65%

TBA

S70 (Mar. 1, 2001)

3.85%

TBA

S69 (Feb. 1, 2001)

4.40%

TBA

S68 (Jan. 1, 2001)

4.85%

TBA

S67 (Dec. 1, 2000)

4.85%

TBA

S66 (Nov. 1, 2000)

4.85%

1.80%

TBA

S65 (Apr. 1, 2000)

4.75%*

3.65%

TBA

S64 (Mar. 1, 2000)

4.75%*

3.85%

TBA

S63 (Feb. 1, 2000)

4.60%*

4.40%

TBA

S62 (Jan. 1, 2000)

4.60%*

4.85%

TBA

S61 (Dec. 1, 1999)

4.85%

TBA

S60 (Nov. 1, 1999)

4.85%

1.80%

TBA

S59 (Apr. 1, 1999)

4.75%*

3.65%

TBA

S58 (Mar. 1, 1999)

4.75%*

3.85%

TBA

S57 (Feb. 1, 1999)

4.60%*

4.40%

TBA

S56 (Jan. 1, 1999)

4.60%*

4.85%

TBA

S55 (Dec. 1, 1998)

4.85%

TBA

S54 (Nov. 1, 1998)

4.85%

1.80%

TBA

S53 (Dec. 1, 1997)

5.25%

6.00%

6.25%

6.50%

TBA

Maturing

S52 (Nov. 1, 1997)

5.25%

6.00%

6.25%

6.50%

TBA

Maturing

S51 (Nov. 1, 1996)

6.50%

6.75%

7.00%

7.25%

8.00%

8.75%

TBA

S50 (Nov. 1, 1995)

4.85%

1.80%

TBA

Maturing

S49 (Nov. 1, 1994)

5.50%

1.80%

TBA

Maturing

S48 (Nov. 1, 1993)

5.50%

1.80%

TBA

Maturing

S47 (Nov. 1, 1992)

5.50%

1.80%

TBA

Maturing

S46 (Nov. 1, 1991)

5.50%

1.80%

TBA

Maturing

S45 (Nov. 1, 1990)

5.50%

1.80%

Maturing


* Represents a blended interest rate taking into account a rate increase during the bond year.

All CSBs issued up to 1988 (Series 1 to 43) have matured and are no longer earning interest. CSB Series 44 (November 1, 1989) matures on November 1, 2001, and will no longer earn interest after that date.

The rates of interest for CSB Series 46 to 71 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)
TTY: 1 800 354-2222 (toll-free)
Fax: (613) 782-7716 
E-mail address: csb@csb.gc.ca 
Web site: www.csb.gc.ca


Last Updated: 2002-11-26

Top

Important Notices