TORONTO, June 1 /CNW/ - Finance Minister Greg Sorbara announced interest

rates for the 2007 issue of Ontario Savings Bonds (OSBs) that go on sale

today, calling them a dependable and competitive investment option for

Ontarians.

     "When people buy OSBs, they are investing in the prosperity of their

province," Sorbara said. "It's a reliable investment that strengthens our

economy and helps build a better quality of life in Ontario."

     The five-year Step-Up Bond interest rates are 3.90 per cent this year,

4.05 per cent in the second year, 4.15 per cent in the third year, 4.25 per

cent in the fourth year and 4.60 per cent in the final year. The three-year

Fixed-Rate Bond interest rate is 4.50 per cent, and the seven-year

Variable-Rate Bond rate is 4.10 per cent for the first six months.

     The interest rate for the next six months for the 2001-2006 Variable-Rate

Bonds was also set today at 4.10 per cent.

     This year, the 2000 Variable-Rate, 2002 Step-Up and the 2004 Fixed-Rate

Bonds are maturing and purchasers can extend their benefits by reinvesting in

2007 OSBs.

     OSBs are available at banks, trust companies, credit unions, caisses

populaires and through investment dealers.

     "Ontario Savings Bonds have become a popular investment option for

small-to-medium investors across the province," Sorbara said. "OSBs are a safe

investment that provide competitive rates and the flexibility to choose from

among three types of bonds."

     Available until June 21, OSBs are backed 100 per cent by the Government

of Ontario and they are sold in amounts from as low as $100 up to $500,000.