TORONTO - Finance Minister Greg Sorbara announced interest rates for the 2006 issue of Ontario Savings Bonds (OSBs) that go on sale today, calling them a safe investment with competitive rates.

"Again, people throughout the province have the opportunity this year to make an investment that they can count on and one that contributes to Ontario's economic strength," Sorbara said. "By investing in Ontario Savings Bonds, purchasers are investing in a stronger Ontario."

The five-year Step-Up Bond interest rates are 3.70 per cent this year, 3.80 per cent in the second year, 3.90 per cent in the third year, 4.00 per cent in the fourth year and 4.25 per cent in the final year.  The three-year Fixed-Rate Bond interest rate is 4.10 per cent, and the seven-year Variable-Rate Bond rate is 3.90 per cent for the first six months.

The interest rate for the next six months for the 2000-2005 Variable-Rate Bonds was also set today at 3.90 per cent.

This year, the 1999 Variable-Rate, 2001 Step-Up, and the 2003 Fixed-Rate Bonds are maturing and purchasers can extend their benefits by reinvesting in 2006 Ontario Savings Bonds.

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

"OSBs contribute to the prosperity of Ontario," Sorbara said.  "They are also competitive, convenient, flexible, safe and provide a variety of purchase options to suit the needs of individual investors."

Available until June 21, OSBs are backed 100 per cent by the Government of Ontario and they are sold in amounts from as low as $100 up to $500,000.  This is the 12th anniversary for the province-wide investment option.

Contact: Ministry of Finance Information Centre 1-800-263-7965 Toll-Free (Canada/U.S.)

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