Ontario announced interest rates for the 2009 issue of Ontario Savings Bonds (OSBs), which go on sale today for the next three weeks.

This year, the province is offering Ontarians two new investment options two-year and five-year Fixed-Rate Bonds.  In addition, starting this June, Variable-Rate bonds will be redeemable annually and have their interest rates reset once a year.  All earlier series of Variable-Rate bonds will continue to be redeemable, and have their interest rates reset, every six months.

The interest rates for the various investments options include:

• A five-year Step-Up Bond interest rate of 0.75 per cent this year, 1.50 per cent in the second year, 2.50 per cent in the third year, 3.50 per cent in the fourth year and 4.50 per cent in the final year
• Fixed-Rate Bonds:
• The interest rate for two-year Fixed-Rate Bonds is 1.25 per cent
• The interest rate for three-year Fixed-Rate Bonds is 2.00 per cent
• The interest rate for five-year Fixed-Rate Bonds is 3.00 per cent
• The seven-year Variable-Rate Bond rate is 1.00 per cent for the first year
• The interest rate on Variable-Rate Bonds for the 2003 to 2008 Series was also reset today at 1.00 per cent.  This rate is effective from June 21 to December 20, 2009.

This year, the 2002 Variable-Rate, 2004 Step-Up and the 2006 Fixed-Rate Bonds are maturing, and purchasers can extend their benefits by reinvesting in 2009 OSBs.