Ontario Savings Bonds are backed by the Canadian province of Ontario and available to individuals and groups in the province. There are three types of bonds with different interest rates and terms, and eligibility is limited to those residing or with a permanent establishment in Ontario. Bonds can be redeemed at maturity and joint ownership is allowed with certain conditions.
Ontario Savings Bonds are savings bonds issued by the Canadian province of Ontario. Both the interest and the principal of these bonds are backed by the province. For individuals or groups in the province, Ontario Savings Bonds are available at banks or credit unions or by contacting an investment agent. There are three types of Ontario savings bonds, all of which are available with annual or compound interest.
Fixed rate Ontario Savings Bonds can be purchased for a term of three, seven or 10 years. Fixed rate bonds maintain the same competitive rate throughout the term. High interest rate bonds have a competitive interest rate that increases each year during their five-year term. Variable rate bonds have a new interest rate set every year for three years.
The purchase of Ontario Savings Bonds is limited. Eligible investors include individuals residing in Ontario and corporations, non-profit associations and organizations that have a permanent establishment in Ontario. A beneficiary of a registered retirement savings plan, employee benefit plan, registered education savings plan or registered pension plan will qualify for ownership eligibility as long as the beneficiary resides in Ontario or has an establishment permanent in Ontario.
When Ontario Savings Bonds mature, they stop earning interest. After the savings bonds mature, the bonds can be redeemed at a Canadian financial institution where the bondholder has an account. Some Canadian financial institutions allow bondholders to transfer proceeds from mature bonds to a new current year bond. In cases where the bonds are lost, stolen or destroyed, the registry will issue a new bond as a replacement at the request of the bondholder.
More than one individual may purchase a bond. Principal and interest on the matured bond will be paid to all joint holders of the bond, unless the joint holders provide written instructions to the financial institution to do otherwise. If one of the co-owners of a bond has died, that co-owner’s portion of the principal and interest is paid to his or her survivors.
There is a maximum limit for Ontario Savings Bonds. When the bonds are jointly owned, the maximum limit is calculated by multiplying the amount by the number of co-owners. The province has the right to redeem any bonds purchased in excess of the specified maximum property limit.
Smart Asset.
Protect your devices with Threat Protection by NordVPN
