Ontario Savings Bonds are a secure and flexible type of investment and are on sale until June 21, 2018.
Bonds are available for purchase for all Ontario residents in amounts ranging from $100 to $1 million. They are available with annual or compound interest, with terms of three, five or ten years, and fixed, accelerator or variable interest rates.
To better meet investors needs, three types of Ontario Savings Bonds are available with each offering a choice of interest – compounded or paid annually.
- Fixed Rate – Bonds with 3-year or 10-year maturity and competitive interest rates until maturity.
- Accelerator Rate – Annual interest rates that increase from year 1 to year 5.
- Variable Rate – A new rate is set every year for three years.
Interest rates for 2018 series are as follows:
Five-Year Accelerating Bond Rate:
- 1.50% in the first year
- 1.80% in the second year
- 2.15% in the third year
- 2.30% in the fourth year
- 2.55% in the fifth year
Fixed rate bonds:
- 2.10% for the three-year fixed-rate bond
- 2.85% for the 10-year fixed-rate bond
Three-year floating bond rate:
- 1.65% in year one
The interest rate on the new floating rate bond is in effect from June 21, 2018 to June 20, 2019.
How to Buy?
You can buy Ontario Savings Bonds from financial institutions, credit unions, or through an investment broker.
Ontario Savings Bonds are attractive to investors because they are available free of charge and both principal and interest are insured by the Province of Ontario.
Interest rates on Ontario Savings Bonds are based on current economic conditions and market trends.
The following Ontario Savings Bonds matured on June 21, 2018:
- 2011 Seven-Year Fixed-Rate Bonds
- 2013 Accelerating Rate Bonds
- 2015 Three Year Floating Rate and Fixed Rate Notes
- All matured bonds may be redeemed at any time after the maturity date. Simply present your bonds to your financial institution, trust company, credit union, or contact your investment broker.
Accelerator bonds can be redeemed prior to maturity on June 21 and December 21. Floating rate notes are redeemable on June 21 of each year.
All bondholders have up to 14 days to redeem their bonds.