The next issue of Canada Savings Bonds will pay an annual interest rate of 1.75% for the first year.

John Manley, Minister of Finance, announced details of the 2003-2004 Canada Savings Bonds campaign, which begins today.

Series 84 CSB’s, which will remain on sale for the remainder of the month, will carry that 1.75% rate as of Nov. 1, 2003. Manley said this interest rate will be increased “if market conditions warrant.” The bonds have a 10-year maturity.

Canada Premium Bonds, which are redeemable only on their anniversary date or 30 days thereafter, pay 2.45% in the first year, rising to 5% in the fifth year. If held for five years, the average annual return on Canada Premium Bonds will be 3.34%.

Canada Investment Bonds are a new bond product being launched this year. They have a three-year term to maturity and not redeemable prior to maturity. They pay 3% each year and are available only from investment dealers.

As it has been since 1998, the new CSB campaign will run for a total of six months. A new issue of bonds will be issued each month until April 1, 2004, with interest rates for each issue announced a few days prior to the beginning of each month.

Manley also announced a 10-year maturity extension that will allow CSB Series 46 bondholders to hold their bonds until November 1, 2013, if they wish and continue to earn interest at competitive rates.

“This 10-year maturity extension is an innovative and easy way to help Canadians to continue saving,” said Jacqueline Orange, president and CEO of Canada Investment and Savings.