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Ontario savings bonds on sale

Ontario Savings Bonds are on sale from June 1 to June 19. That means you only have until the end of the week to make a purchase (if you live outside of Ontario, you are not allowed to buy the bonds). The interest rates for the bonds are:
two-year Fixed-Rate Bond: 1.25% three-year Fixed-Rate Bond: 2.00% five-year Fixed-Rate Bond: 3.00% seven-year Variable-Rate Bond: 1.00% for the first year five-year Step-Up Bond: 0.75% in first year,1.50% in the second year, 2.50% in the third year,3.50% in the fourth year, 4.50% in the final year
The two-year and five-year Fixed-Rate Bonds are new offerings this year. Plus, starting this June, Variable-Rate bonds will be redeemable annually and have their interest rates reset once a year (earlier series had their interest rates reset every six months).
Rates are generally better on GICs. According to the Fiscal Agents website, you can get the following annual interest rates on GICs:
Two-year GIC: 2.5% Three-year GIC: 2.9% Five-year GIC: 4.0% Escalator GIC:1.25% in first year, 1.75% in second year,3.0% in third year, 4.0% in fourth year, 7.0% in fifth year.
GICs longer than 5 years are not covered byCanada Deposit Insurance Corp. The seven-year Variable-Rate Bond,backed by the Ontario Government, would be one way to earn a government-insured, GIC-like return beyond five years. And its rate will rise if market rates rise.
Yet, high-interest bank accounts may offer a better deal. They are guaranteed by the federal government on an indefinite basis, offer higher interest rates that will similarly go up if market rates rise, and are easy to withdraw cash from. ING Directs investment savingsaccount, for example, pays 1.35% currently.
Ontario Savings Bond website