A ferrite powder for bonded magnets having a substantially magnetoplumbite-type crystal structure and an average diameter of 0.9-2 &mgr;m, the ferrite powder having a basic composition represented by the following general formula: (A1−xRx)O.n[(Fe1−yMy)2O3] by atomic ratio, wherein A is Sr and/or Ba; R is at least one of rare earth elements including Y, La being indispensable; M is at least one element selected from the group consisting of Co, Mn, Ni and Zn; and x, y and n are numbers meeting the conditions of 0.01≦x≦0.4, [x/(2.6n)]≦y≦[x/(1.6n)], and 5≦n≦6, (Si+Ca) being 0.2 weight % or less, and (Al+Cr) being 0.13 weight % or less, can be produced by mixing iron oxide containing 0.06 weight % or less of (Si+Ca) and 0.1 weight % or less of (Al+Cr) with compounds of A, R and M elements, calcining the resultant mixture for ferritization, pulverizing the resultant magnetically isotropic ferrite and then heat-treating the pulverized ferrite at 750-950° C. for 0.5-3 hours in the air.