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1997-085
Canada Savings Bonds to Offer Seven Year Rate Guarantees and Introduce CSB-RRIF
Finance Minister Paul Martin today announced terms and conditions for the Canada Savings Bonds (CSBs) that go on sale October 6, 1997.
The CSB will offer minimum guaranteed annual interest rates for seven years. These rates will be increased if market conditions warrant. CSBs are cashable at any time, with principal and interest 100 per cent guaranteed by the Government of Canada.
"The CSB is a solid product which has a place in Canadians' hearts and their financial portfolios," said Mr. Martin. "They offer complete security, a competitive interest rate, and are cashable anytime. These features give CSB purchasers something very important - a great deal of flexibility and control over their money."
New this year is the CSB-RRIF (Registered Retirement Income Fund) option. This option will allow Canadians to transfer funds held in their Registered Retirement Savings Plans (RRSP) into a RRIF that holds CSBs as investments. The CSB-RRIF is designed to provide a steady retirement income while continuing the deferral of tax on the remaining retirement savings.
"With the introduction of the RRIF option, the CSB becomes a product that is in step with the times and relevant to a wider segment of the Canadian population. This is important as we continue to promote CSBs and other Government of Canada retail debt products, such as Canada RRSP Bonds," noted Jacqueline Orange, President of Canada Investment and Savings.
There will be two series of CSBs sold this year. Series 52 will be on sale until November 1, 1997. Series 53 will be available from November 2 to December 1, 1997, and is designed to accommodate transfers of registered funds into The Canada RSP and The Canada RIF. Employers are reminded that the deadline for submitting applications for the Canada Payroll Savings plan is November 14, 1997.
Interest rates for Series 52 will be announced shortly. Series 53 interest rates will be announced in early November.
The Minister reserves the right to terminate sales at any time.
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Canada Investment and Savings Media Relations
(613) 943-1299
(613) 992-2550
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| Last Updated: 2005-01-04 |
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