Ontario Savings Bond
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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 to residents of Ontario only.
[edit] Types of Bonds
There are three types of savings bonds offered by the province. The variable-rate bond is a seven-year bond that has its interest rate reset every six months. The step-up bond is a five-year bond that has an interest rate that increases every year until maturity. Finally the fixed-rate bond is a 3-year bond with an unchanging interest rate. While the fixed-rate bond can only be redeemed at maturity, the other two may be redeemed within 14 days after a redemption date on either June 21 or December 21.
