Ontario Savings Bonds
Ontario Savings Bonds (OSBs) are bond securities issued by the province of Ontario. Introduced in 2001, OSBs' principal and interest are backed by the Province of Ontario. The OSBs are available from financial institutions, credit unions, caisses populaires and investment dealers.
Unlike the Canada Savings Bond, OSBs are sold only to residents of Ontario.
Types of Bonds
There are three types of savings bonds offered by the province. The variable-rate bond is a three-year bond that has its interest rate reset every six months (prior to 2009) or every year (since 2009). The step-up bond is a five-year bond that has an interest rate that increases every year until maturity. Finally, there are three different terms of fixed-rate bond, a 3-year, 7-year, and 10-year, each with interest rates that are unchanging throughout their term. While the fixed-rate bond can only be redeemed at maturity, step-up bonds can be redeemed semiannually on June 21 or December 21 (and 14 days thereafter), and variable rate bonds purchased 2009 and later can only be redeemed June 21 annually and 14 days thereafter.