QUEEN’S PARK - The Ontario government announced that the interest rate for the Variable-Rate Ontario Savings Bonds (OSBs) will be re-set at 4.10 per cent for the next six months.

“We are committed to ensuring that OSBs continue to remain competitive with similar investment instruments,” Finance Minister Dwight Duncan said. “Investing in Ontario Savings Bonds means that the funds stay here in Ontario, contributing to the prosperity of the province.”

Ontario Savings Bonds have been issued every year since 1995. The Variable-Rate Bond interest rates are reviewed and re-set every six months according to prevailing market conditions. The new rate applies to Variable-Rate Bonds purchased from 2001 to 2007. Another new rate will be set on June 21, 2008.

Variable-Rate Bonds are one of three OSB investment options that are available annually during the first three weeks of June. The Fixed-Rate and Step-Up Ontario Savings Bonds are unaffected by this interest rate.

“OSBs provide Ontario investors with the opportunity to make a secure investment in the strong and resilient economic future of Ontario,” Duncan said.

Ontario Savings Bonds are backed 100 per cent by the Province of Ontario and can only be purchased by Ontario residents. OSBs are sold at banks, trust companies, caisses populaires, credit unions and through investment dealers across the province during the first three weeks of June.