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Ottawa, February 2, 2001 Rates Announced for Canada Premium Bond Series 19 and Canada Savings Bond Series 70Related document: Secretary of State (International Financial Institutions) Jim Peterson announced interest rates for Canada Premium Bond (CPB) Series 19 and Canada Savings Bond (CSB) Series 70, which go on sale today. CPB Series 19, with an issue date of March 1, 2001, and a 10-year term to maturity, will carry an interest rate of 4.35 per cent for the first year, 4.45 per cent for the second year and 4.55 per cent for the third year. The annual compound rate of return, based on these guaranteed rates, will be 4.44 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. Outstanding CPB Series 2 (March 1, 1998) will also carry an interest rate of 4.35 per cent for the bond year beginning March 1, 2001, 4.45 per cent for the bond year beginning March 1, 2002 and 4.55 per cent for the bond year beginning March 1, 2003. CSB Series 70, with an issue date of March 1, 2001, and a 10-year term to maturity, will carry an interest rate of 3.85 per cent for the first year. CSBs can be cashed at any time. Outstanding CSB Series 58 (March 1, 1999) and CSB Series 64 (March 1, 2000) will also carry an interest rate of 3.85 per cent for the year beginning March 1, 2001. CPB Series 19 and CSB Series 70 are available wherever Canadians bank or invest from February 2, 2001, to March 1, 2001. Canadians can also buy CPBs and CSBs, including the registered retirement savings plan (RRSP) option, directly by calling toll-free 1 888 773-9999 between 8 a.m. and 8 p.m. Eastern Time, Monday to Friday. For those making their registered purchases directly by telephone, calls must be made prior to February 22, 2001, to accommodate the mailing of payments to meet the March 1, 2001 RRSP contribution deadline and receive a tax receipt for 2000 income tax purposes. After this issue, the next series will be the last series of CPBs and CSBs on sale for the 2000-2001 Campaign. Each of these bonds, with an issue date of April 1, 2001, will be on sale beginning March 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 BackgrounderCanada Premium Bond Series 19 and Canada Savings Bond Series 70
Those purchasing bonds between February 2, 2001, and March 1, 2001, will be able to date their payments March 1, 2001, the day Canada Premium Bond (CPB) Series 19 and Canada Savings Bond (CSB) Series 70 start earning interest. Holders of compound interest (C-bond) CPB Series 19 will earn $139.53 for each $1,000 bond held from March 1, 2001, until the end of the third bond year, with an annual compound rate of return of 4.44 per cent. The effective annual yield over the three years for a regular interest (R-bond) CPB Series 19 will be 4.44 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 70 will earn $38.50 for each $1,000 bond held from March 1, 2001, until the end of the first bond year, with an annual rate of return of 3.85 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 19 rates for the remaining seven years to maturity and CSB Series 70 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 18 will earn the following guaranteed rates of interest for the years indicated.
The rates of interest for Series 2 to 18 for subsequent years to maturity will be announced at future dates. Outstanding Canada Savings BondsCSBs Series 44 to 69 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 69 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) 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. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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