Interest

Annual Interest bond:
Interest is paid once a year on June 21 up to and including the Maturity Date for OSBs, or such earlier date on which the bond is redeemed, at the rate set for the relevant period.  Interest is paid by cheque mailed to the address of the bondholder(s), or by direct deposit to the account of the bondholder(s).  Accrued interest payable on any semi-annual redemption (i.e. December 21) is calculated and paid by the Redemption Agent where the Annual Interest bond is presented at the time of redemption.

Compound Interest bond:
Interest is compounded annually, on June 21, 2011, and every June 21 thereafter up to and including the Maturity Date, at the rate set for the OSB for each relevant period.  Interest on Compound Interest Bonds accumulates, and is paid to the bondholder(s) when the bond is redeemed, exchanged for an Annual Interest bond of the same type, or on the Maturity Date of the bond.

For Annual Interest bonds, interest is paid on June 21, 2011, and every June 21 thereafter up to and including the Maturity Date.

For Compound Interest bonds, interest is compounded on June 21, 2011 and every June 21 thereafter and is paid to the bondholder(s) at maturity or when the bond is redeemed.

"Annual Interest Bond" or "Compound Interest Bond" is indicated in the top portion of the Ontario Savings Bonds certificate. It is also indicated on the purchaser's copy of the Purchase Application Form (ONT1).

Variable-Rate Bonds issued prior to 2009 have an annual interest rate that is reset semi-annually.  Interest is calculated based on two equal semi-annual payments. 

For example, the interest earned on a December 21 Redemption Date is half of the interest that would have been earned if the interest had been paid for a full year.

Yes. The request to change the method in which interest payments are made must be made through the Registrar, at least 15 days prior to any interest payment date. A Change of Information Form must be completed and mailed to the Registrar. Changes to direct deposit information are not accepted on a Redemption Date or during the 15 days immediately preceding.

If the Registrar does not have the correct direct deposit information, the interest payments will not be successfully deposited into the bondholder’s account. As a result, a cheque for the unsuccessfully deposited interest payment will be forwarded to the bondholder’s address currently on file.

It is the bondholder’s responsibility to contact the Registrar with any corrections or changes to existing financial information. To notify the Registrar of any changes, download the Change of Information Form , fill it out and mail it to the Registrar at the address noted on the form.

In order to change direct deposit information, a Change of Information Form must be completed and sent to the Registrar, at least 15 days prior to the interest payment date. Changes to direct deposit information ARE NOT accepted over the telephone or by fax.

For tax-related inquiries, please contact Canada Revenue Agency directly at 1-800-959-8281.

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