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Ottawa, October 5, 2001 Rates Announced for Canada Premium Bond Series 21 and Canada Savings Bond Series 72Related 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. ___________________
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 21 and Canada Savings Bond Series 72
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.
Outstanding Canada Savings BondsCSBs Series 45 to 71 will earn 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. 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. ________________ Tel: 1 800 575-5151 (toll-free) |
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