Ottawa, October 4, 2004 2004-061 Related document: Backgrounder The Department of Finance today announced interest rates for the November 1 bond issues of the Canada Savings Bond (CSB) Series 90 and the Canada Premium Bond (CPB) Series 40, which are on sale from today until November 1, 2004, inclusive. CSB Series 90, with an issue date of November 1, 2004, and a 10-year term to maturity, will carry an interest rate of 1.35 per cent for the first year. This rate may be increased if market conditions warrant, but bondholders will not earn less than this guaranteed rate during the first year of the bond. The CSB can be cashed at any time. Outstanding CSB Series 46 (November 1, 1991), CSB Series 47 (November 1, 1992), CSB Series 48 (November 1, 1993), CSB Series 49 (November 1, 1994), CSB Series 50 (November 1, 1995), CSB Series 52 (November 1, 1997), CSB Series 54 (November 1, 1998), CSB Series 60 (November 1, 1999), CSB Series 66 (November 1, 2000), CSB Series 72 (November 1, 2001), CSB Series 78 (November 1, 2002), and CSB Series 84 (November 1, 2003) will carry the same interest rate as that announced for CSB Series 90 for the bond year November 1, 2004, to October 31, 2005. The maturity date on CSB Series 47 (November 1, 1992) has been extended to November 1, 2014. CPB Series 40, with an issue date of November 1, 2004, and a 10-year term to maturity, will carry an interest rate of 1.70 per cent for the first year, rising to 3.20 per cent for the third year. The annual compound rate of return, based on these guaranteed rates, will be 2.36 per cent if held for the three years. The interest rates posted for years one through three are guaranteed and may be increased up until the issue date if market conditions warrant. Once the issue date has passed, no changes to the posted interest rates will be made. The CPB is redeemable once a year on the anniversary of the issue date and during the 30 days thereafter. Outstanding CPB Series 3 (November 1, 1998) and CPB Series 21 (November 1, 2001) will carry the same interest rates as those announced for CPB Series 40 for the bond years beginning November 1, 2004, and ending October 31, 2007. CSB Series 90 and CPB Series 40, together with their no-fee retirement savings plan option, are available for direct purchase online at www.csb.gc.ca, by phone between 8 a.m. and 8 p.m. Eastern Time, Monday to Friday, by calling toll-free at 1 888 773-9999, or wherever Canadians bank or invest. Non-certificated CSB Series 90 and CPB Series 40 are available from authorized investment dealers. The next series of the CSB and the CPB are expected to be available November 2, 2004. Persons interested in receiving interest rate information about subsequent series of the CSB and the CPB may subscribe to an automatic e-mail notification service at www.csb.gc.ca. Those who already subscribe to the e-newsletter service are not required to re-register to receive these automatic notifications. As in the past, the Minister of Finance reserves the right to terminate sales at any time. A backgrounder is attached. ___________________ For further information: Canada Investment and Savings Media Relations (613) 996-0748 If you would like to receive automatic e-mail notification of all news releases, please visit the Department of Finance Canada Web site at http://www.fin.gc.cahttp://www.fin.gc.ca/scripts/register_e.asp Backgrounder Canada Savings Bond Series 90 and Canada Premium Bond Series 40 Canada Savings Bond Series 90 Canada Premium Bond Series 40 Interest rates for year beginning Annual interest rate Annual compound rate of return if held to November 1 of the following year Annual interest rate Annual compound rate of return if held to November 1 of the following year Nov. 1, 2004 1.35% 1.35% 1.70% 1.70% Nov. 1, 2005 TBA TBA 2.20% 1.94% Nov. 1, 2006 TBA TBA 3.20% 2.36% Those purchasing bonds between October 4, 2004, and November 1, 2004, will be able to date their payment November 1, 2004, the day the Canada Savings Bond (CSB) Series 90 and the Canada Premium Bond (CPB) Series 40 start earning interest. Holders of compound interest (C-bond) CSB Series 90 will earn $13.50 for each $1,000 bond held from November 1, 2004, until the end of the first bond year, with an annual compound rate of return of 1.35 per cent. This interest rate may be increased if market conditions warrant, but bondholders will not earn less than this guaranteed annual rate during the first year of the bond. Holders of compound interest (C-bond) CPB Series 40 will earn $72.63 for each $1,000 bond held from November 1, 2004, until the end of the third bond year, with an annual compound rate of return of 2.36 per cent. The effective annual yield over the three years for a regular interest (R-bond) CPB Series 40 will be 2.35 per cent based on these guaranteed rates. The interest rates posted for years one through three are guaranteed for the periods indicated and may be increased up until the issue date if market conditions warrant. Once the issue date has passed, however, these interest rates will not be changed. CSB Series 90 rates for the remaining nine years to maturity and CPB Series 40 rates for the remaining seven years to maturity will be announced at future dates. As in the past, the Minister of Finance reserves the right to terminate sales at any time. Outstanding Canada Savings Bonds CSB Series 46 to 89 will earn the following posted minimum guaranteed rates for the years indicated. Series Interest rate for the year beginning on the series issue date or anniversary date indicated 2003 2004 2005 2006 2007 2008 2009 2010 S89 (Apr. 1, 2004) -- 1.25% TBA S88 (Mar. 1, 2004) -- 1.30% TBA S87 (Feb. 1, 2004) -- 1.55% TBA S86 (Jan. 1, 2004) -- 1.65% TBA S85 (Dec. 1, 2003) 1.65% TBA S84 (Nov. 1, 2003) 1.75% 1.35% TBA S83 (Apr. 1, 2003) 2.00% 1.25% TBA S82 (Mar. 1, 2003) 2.00% 1.30% TBA S81 (Feb. 1, 2003) 2.00% 1.55% TBA S80 (Jan. 1, 2003) 2.00% 1.65% TBA S79 (Dec. 1, 2002) 1.65% TBA S78 (Nov. 1, 2002) 1.75% 1.35% TBA S77 (Apr. 1, 2002) 2.75% 4.00% TBA S76 (Mar. 1, 2002) 2.75% 4.00% TBA S75 (Feb. 1, 2002) 2.00% 1.55% TBA S74 (Jan. 1, 2002) 2.00% 1.65% TBA S73 (Dec. 1, 2001) 1.65%% TBA S72 (Nov. 1, 2001) 1.75% 1.35% TBA S71 (Apr. 1, 2001) 2.75% 4.00% TBA S70 (Mar. 1, 2001) 2.75% 4.00% TBA S69 (Feb. 1, 2001) 2.00% 1.55% TBA S68 (Jan. 1, 2001) 2.00% 1.65% TBA S67 (Dec. 1, 2000) 1.65% TBA Maturing S66 (Nov. 1, 2000) 1.75% 1.35% TBA Maturing S65 (Apr. 1, 2000) 2.75% 4.00% TBA Maturing S64 (Mar. 1, 2000) 2.75% 4.00% TBA Maturing S63 (Feb. 1, 2000) 2.00% 1.55% TBA Maturing S62 (Jan. 1, 2000) 2.00% 1.65% TBA Maturing S61 (Dec. 1, 1999) 1.65% TBA Maturing S60 (Nov. 1, 1999) 1.75% 1.35% TBA Maturing S59 (Apr. 1, 1999) 2.75% 4.00% TBA Maturing S58 (Mar. 1, 1999) 2.75% 4.00% TBA Maturing S57 (Feb. 1, 1999) 2.00% 1.55% TBA Maturing S56 (Jan. 1, 1999) 2.00% 1.65% TBA Maturing S55 (Dec. 1, 1998) 1.65% TBA Maturing S54 (Nov. 1, 1998) 1.75% 1.35% TBA Maturing S53 (Dec. 1, 1997) 6.50% TBA Maturing S52 (Nov. 1, 1997) 6.50% 1.35% TBA Maturing S51 (Nov. 1, 1996) 7.25% 8.00% 8.75% TBA Maturing S50 (Nov. 1, 1995) 1.75% 1.35% TBA Maturing S49 (Nov. 1, 1994) 1.75% 1.35% TBA Maturing S48 (Nov. 1, 1993) 1.75% 1.35% Maturing S47 (Nov. 1, 1992) 1.75% 1.35% TBA S46 (Nov. 1, 1991) 1.75% 1.35% TBA All CSBs issued up to 1990 (Series 1 to 45) have matured and are no longer earning interest. The maturity date on CSB Series 47 (November 1, 1992) has been extended to November 1, 2014 and will continue to earn interest at the rate indicated in the above chart for the bond year beginning November 1, 2004, and ending October 31, 2005. The rates of interest for CSB Series 46, 47 and 49 to 89 for subsequent years to maturity will be announced at future dates. Outstanding Canada Premium Bonds (Series 1 and Series 2 formerly known as Canada RRSP Bonds) CPBs Series 1 to 39 will earn the following guaranteed rates of interest for the years indicated. Series Interest rate for the year beginning on the series issue date or anniversary date indicated 2003 2004 2005 2006 2007 2008 2009 2010 P39 (Apr. 1, 2004) -- 2.00% 2.25% 2.50% 3.25% 4.00% TBA P38 (Mar. 1, 2004) -- 2.25% 2.50% 3.00% 3.50% 4.00% TBA P37 (Feb. 1, 2004) -- 2.25% 2.65% 3.00% 3.50% 5.00% TBA P36 (Jan. 1, 2004) -- 2.35% 2.75% 3.00% 4.00% 5.50% TBA P35 (Dec. 1, 2003) 2.35% 2.75% 3.00% 4.00% 5.50% TBA P34 (Nov. 1, 2003) 2.45% 2.80% 3.00% 3.50% 5.00% TBA P32 (Apr. 1, 2003) 2.50% 3.00% 3.50% 4.25% 5.00% TBA P31 (Mar. 1, 2003) 2.50% 3.00% 3.50% 4.25% 5.00% TBA P33 (Feb. 1, 2003) 2.50% 3.00% 3.50% 4.25% 5.00% TBA P30 (Feb. 1, 2003) 2.50% 3.00% 4.00% 4.85% 6.00% TBA P29 (Jan. 1, 2003) 2.50% 3.00% 4.00% 4.85% 6.00% TBA P28 (Dec. 1, 2002) 3.00% 4.00% 4.85% 6.00% TBA P27 (Nov. 1, 2002) 3.00% 4.00% 4.85% 6.00% TBA P26 (Apr. 1, 2002) 3.00% 4.25% 4.75% 6.00% TBA P25 (Mar. 1, 2002) 3.00% 4.25% 4.75% 6.00% TBA P24 (Feb. 1, 2002) 2.70% 3.50% TBA P23 (Jan. 1, 2002) 2.70% 3.50% TBA P22 (Dec. 1, 2001) 4.00% TBA P21 (Nov. 1, 2001) 4.00% 1.70% 2.20% 3.20% TBA P20 (Apr. 1, 2001) 4.55% 2.00% 2.25% 2.50% 3.25% 4.00% TBA P19 (Mar. 1, 2001) 4.55% 2.25% 2.50% 3.00% 3.50% 4.00% TBA P18 (Feb. 1, 2001) 5.75% 2.25% 2.65% 3.00% 3.50% 5.00% TBA P17 (Jan. 1, 2001) 5.90% 2.35% 2.75% 3.00% 4.00% 5.50% TBA P16 (Dec. 1, 2000) 2.35% 2.75% 3.00% 4.00% 5.50% TBA Maturing P15 (Nov. 1, 2000) 2.45% 2.80% 3.00% 3.50% 5.00% TBA Maturing P14 (Apr. 1, 2000) 2.50% 3.00% 3.50% 4.25% 5.00% TBA Maturing P13 (Mar. 1, 2000) 2.50% 3.00% 3.50% 4.25% 5.00% TBA Maturing P12 (Feb. 1, 2000) 2.50% 3.00% 4.00% 4.85% 6.00% TBA Maturing P11 (Jan. 1, 2000) 2.50% 3.00% 4.00% 4.85% 6.00% TBA Maturing P10 (Dec. 1, 1999) 3.00% 4.00% 4.85% 6.00% TBA Maturing P9 (Nov. 1, 1999) 3.00% 4.00% 4.85% 6.00% TBA Maturing P8 (Apr. 1, 1999) 3.00% 4.25% 4.75% 6.00% TBA Maturing P7 (Mar. 1, 1999) 3.00% 4.25% 4.75% 6.00% TBA Maturing P6 (Feb. 1, 1999) 2.70% 3.50% TBA Maturing P5 (Jan. 1, 1999) 2.70% 3.50% TBA Maturing P4 (Dec. 1, 1998) 4.00% TBA Maturing P3 (Nov. 1, 1998) 4.00% 1.70% 2.20% 3.20% TBA Maturing P2 (Apr. 1, 1998) 4.55% 2.00% 2.25% 2.50% 3.25% Maturing P2 (Mar. 1, 1998) 4.55% 2.25% 2.50% 3.00% 3.50% Maturing P1 (Apr. 1, 1997) 6.75% 7.00% 7.50% 8.50% Maturing P1 (Mar. 1, 1997) 6.75% 7.00% 7.50% 8.50% Maturing The rates of interest for Series 3 to 39 for subsequent years to maturity will be announced at future dates. Additional information on the terms and conditions of the CSB and the CPB is available on our Web site at www.csb.gc.ca or at financial institutions across Canada. ____________________ For further information: Tel: 1 800 575-5151 (toll-free) TTY: 1 800 354-2222 (toll-free) Fax: (613) 782-7716 E-mail address: csb@csb.gc.ca Web site: www.csb.gc.ca
