Finance Minister Greg Sorbara announced increased interest rates for the 2007 issue of Ontario Savings Bonds (OSBs) to keep the bonds competitive in Ontario’s investment market.

For the five-year Step-Up Bond, the new rates are 4% this year, 4.2% in the second year, 4.4% in the third year, 4.6% in the fourth year and 4.95% in the final year

For the three-year Fixed-Rate Bond, the new rate is 4.75%, and tor the seven-year Variable-Rate Bond, the new rate is 4.25% for the first six months.

The interest rate for the next six months for the 2001-2006 Variable-Rate Bonds was also set today at 4.25%.

2007 OSBs that have already been purchased will automatically be given the new higher interest rates.

“When people buy OSBs, they are investing in the prosperity of their province,” Sorbara said. “It’s a reliable investment that strengthens our economy and helps build a better quality of life in Ontario.”

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

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