Ontario Finance Minister Greg Sorbara announced interest rates for the 2005 issue of Ontario Savings Bonds (OSBs) that go on sale today.

The five-year Step-Up Bond interest rates are 2.25% this year, 2.75% in the second year, 3% in the third year, 3.50% in the fourth year and 4% in the final year.

The three-year Fixed-Rate Bond interest rate is 3.10%, and the seven-year Variable-Rate Bond rate is 2.35% for the first six months.

The interest rate for the next six months for the 1999-2004 Variable-Rate Bonds was also set today at 2.35%.

This year, the 1998 Variable-Rate, 2000 Step-Up, and the 2002 Fixed-Rate Bonds are maturing and purchasers can extend their benefits by reinvesting in 2005 Ontario Savings Bonds.

OSBs are available at banks, trust companies, credit unions, caisses populaires and through investment dealers.

“OSBs contribute to the prosperity of our province – the place where we live, work and raise our families,” Sorbara said. “They are also a popular investment that provides Ontarians with the flexibility of three investment options and competitive rates.”

Available until June 21, OSBs are backed 100% by the Government of Ontario and they are sold in amounts from $100 to $500,000.

This is the 11th anniversary for the province-wide investment option.