Ontario Savings Bond Redemption Calculator

Use this Ontario Savings Bond Redemption Calculator to determine the value of your savings bonds when redeeming them. The calculator accounts for the current interest rates and any applicable fees.

How to Use This Calculator

To calculate your Ontario Savings Bond redemption value:

Enter the original purchase price of your bond
Select the bond type (Series I, II, or III)
Enter the number of years the bond has been held
Click "Calculate" to see your redemption value

The calculator will display your estimated redemption value and show how it was calculated.

Formula Used

The redemption value is calculated using the following formula:

Redemption Value = Purchase Price × (1 + (Interest Rate × Years Held))

The interest rates for each bond series are as follows:

Series I: 4.5% per year
Series II: 5.5% per year
Series III: 6.5% per year

Note: These rates are approximate and may vary slightly based on the exact date of purchase.

Worked Examples

Example 1: Series I Bond

If you purchased a $100 Series I bond 5 years ago:

Redemption Value = $100 × (1 + (0.045 × 5)) = $100 × 1.225 = $122.50

Example 2: Series III Bond

If you purchased a $500 Series III bond 10 years ago:

Redemption Value = $500 × (1 + (0.065 × 10)) = $500 × 1.65 = $825.00

These examples show how the bond series and holding period affect the final redemption value.

Frequently Asked Questions

What is the difference between Series I, II, and III bonds?: Series I bonds have the lowest interest rate (4.5%) and are typically issued to individuals. Series II bonds (5.5%) are issued to businesses, and Series III bonds (6.5%) are issued to government agencies.
Can I redeem my bond early?: Yes, you can redeem your bond early, but you will receive the current market value rather than the full redemption value. The calculator shows the full redemption value assuming you hold the bond until maturity.
Are there any fees associated with redemption?: There are no redemption fees for Ontario Savings Bonds. The calculator does not account for any fees that might apply if you sell the bond on the secondary market.
How often are the interest rates updated?: The interest rates are adjusted annually based on changes in the Bank of Canada's overnight rate. The calculator uses the most recent published rates.
Can I use this calculator for bonds purchased before 1997?: No, this calculator only works for bonds issued after 1997. Older bonds have different redemption rules and should be evaluated separately.