October 22, 2004 The Department of Finance today announced an increase in the interest rates for the Canada Savings Bond (CSB) Series 90 and the Canada Premium Bond (CPB) Series 40, which are on sale until November 1, 2004. The increased rates will apply to any of these bond series purchased by Canadians since the sale of bonds began on October 4, 2004. CSB Series 90 and CPB Series 40, with a 10-year term to maturity, will now carry interest rates as follows: Canada Savings Bond Series 90 Canada Premium Bond Series 40 Interest rates for year beginning Annual interest rate Annual 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 1.50% 1.50% 1.85% 1.85% Nov. 1, 2005 TBA TBA 2.45% 2.14% Nov. 1, 2006 TBA TBA 3.40% 2.56% *Calculations based on a $1,000 compound interest bond. 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 now 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. Outstanding CPB Series 3 (November 1, 1998) and CPB Series 21 (November 1, 2001) will now 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 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. The next series of the CSB and the CPB are expected to be available November 2, 2004. As in the past, the Minister of Finance reserves the right to terminate sales at any time.
