Fixed Income
2002 Ontario Savings Bonds
Buy Ontario Savings Bonds and invest in your future...invest in Ontario. Ontario Savings Bonds offer every Ontario resident a secure, flexible and competitive savings vehicle.
Every dollar you invest and all of your interest payments are backed 100% by the Government of Ontario. Plus, you can purchase Ontario Savings Bonds for as little as $100, with the flexibility in some cases to cash in your bonds twice a year.
Ontario Savings Bonds are available from May 31 to June 21, 2002, and once again investors can choose from three types of Ontario Savings Bonds:
Five-Year Step-Up Bond....interest rates increase every year.
Interest rates are set for each year of the five-year term, and will not be reduced even if market interest rates decline during that period. The Step-Up Bond is redeemable every six months on any redemption date prior to maturity.
Interest Rate is 2.50% for the year commencing
June 21, 2002
Interest Rate is 3.75% for the year commencing
June 21, 2003
Interest Rate is 4.50% for the year commencing
June 21, 2004
Interest Rate is 5.00% for the year commencing
June 21, 2005
Interest Rate is 5.50% for the year commencing
June 21, 2006
Three-Year Fixed-Rate Bond....single interest rate for the three-year term. The interest rate for the full three-year term is set and will not change. The Fixed-Rate Bond is redeemable at final maturity.
Interest Rate is 4.625%
Seven-Year Variable-Rate Bond.... interest rates are re-set every six months. The interest rate is set for the first six months, and is then re-set every six months based on fluctuating market rates, for the balance of the seven-year term. The Variable-Rate Bond is also redeemable every six months on any redemption date prior to maturity.
Interest Rate for the first 6 months is 2.75%
Benefits of Ontario Savings Bonds
Safety of Principal
Your investment is backed 100% by the Government of Ontario.
Guaranteed Interest Payments
Your interest payments are also backed by the Government of Ontario and you can choose between annual and compound interest. Annual interest will be paid every June 1st until the bond matures or is redeemed. Compound interest will be paid when the bond matures or is redeemed.
Security of a longer term investment
The Three-Year Fixed-Rate Bond and Five-Year Step-Up Bond provide you with set interest rates for their terms of 3 or 5 years.
Investment Flexibility
The Step-Up Bond and Variable-Rate Bond are redeemable at the option of the bondholder every June and December of each year prior to maturity. They are also redeemable up to 14 days following the redemption date, although interest is only payable up to the redemption date.
Low minimum investment required
The minimum purchase amount is $100. Self-directed RSP options are also available for minimum purchases of $100. All bonds are available in multiples of $100 up to a maximum purchase of $500,000.
RSP eligible
Ontario Savings Bonds are 100% eligible for all Self-Directed RSPs.
Important Dates
Sales Period: May 31 to June 21, 2002.
Settlement Date: June 21, 2002.
Where can Ontario Savings Bonds be purchased?
You can purchase Ontario Savings Bonds through TD Waterhouse and any TD Canada Trust branch in Ontario.
These bonds are available only to Ontario residents, which means you have an exclusive opportunity to invest in your future and your province's future.
Need More Information?
For more information contact your local TD Canada Trust branch or TD Waterhouse. You can also call EasyLine Telephone Banking at 1-877-247-2265 for details 24 hours a day, 7 days a week.
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