Our Products

The Canada Savings Bond

A Canada Savings Bond (CSB) is a safe and secure investment product issued and fully guaranteed by the Government of Canada, available to all Canadians to achieve personal financial goals. Canada Savings Bonds can be redeemed at any time during the year.While the Canada Savings Bond has a ten-year term to maturity, interest rates are often announced for a shorter period and remain in effect for that announced period. At the end of the period, new rates will be announced by the Minister of Finance based on the prevailing market conditions.

The Canada Premium Bond

The Canada Premium Bond (CPB), introduced in 1998 by the Government of Canada, offers the same general features as Canada Savings Bonds, but has a higher rate of interest at the time of issue than a CSB on sale at the same time, and can be redeemed each year on the anniversary of the issue date and during the 30 days thereafter.While the Canada Premium Bond has a ten-year term to maturity, interest rates are often announced for a shorter period and remain in effect for that announced period. At the end of the period, new rates will be announced by the Minister of Finance based on the prevailing market conditions.

The Canada RSP

The Canada RSP is a specially designed no-fee RRSP for holding Compound-Interest Canada Savings Bonds (CSBs and CPBs) as investments. Your contributions will be tax-deferred and you will receive tax-sheltered interest.

By law, you are not eligible to hold an RRSP beyond 31 December of the year in which you reach the age of 71. By that time, you must arrange to transfer the proceeds of your RRSP into a RRIF or an annuity that provides you with a retirement income, or withdraw the funds and pay income tax on the total proceeds.

Effective 4 October, 2010, no new Canada RSP accounts can be opened.

If you currently own a Canada RSP Plan:

• Existing plan holders can make a new contribution directly into their Canada RSP by purchasing CPBs and CSBs from early October to 1 December. You will receive a tax receipt for your contribution and all contributions are subject to the annual limit prescribed by the Canada Revenue Agency. If you are interested in purchasing bonds, go to Buy CSBs Online.

• Existing plan holders can transfer all or part of your Compound-Interest CSBs/CPBs to The Canada RSP (minimum of $500, maximum of $500,000 per series) at any time prior to maturity. (Note: Non-certificated Canada Savings Bonds purchased through investment dealers cannot be transferred to The Canada RSP.)

• Existing plan holders can transfer funds from a self-directed RRSP (except locked-in funds) to The Canada RSP.

The Canada RIF

The Canada RIF is a specially designed no-fee RRIF, eligible to hold both Compound-Interest CSBs and CPBs.

If you currently own a Canada RIF Plan:

• Existing plan holders, at any time, may transfer CSBs/CPBs held in a Self-Directed RRSP or RRIF by contacting our Customer Service to initiate the transfer request.

During the sales campaign (early October to 1 December), you can transfer the proceeds (except locked-in funds) from a self-directed RRSP or RRIF to The Canada RIF to purchase CSBs or CPBs. Contact Customer Service to initiate the transfer request.

• Your savings retain their tax-deferred status until they are withdrawn.

• You control the timing and amount of your withdrawals (subject to an annual minimum amount required by law).

Here are Canada Savings Bonds and Canada Premium Bonds at a glance:

	Canada Savings Bond	Canada Premium Bond
Fully backed by the Government of Canada	Yes	Yes
Guaranteed rate of return	Yes	Yes
Available in both regular and compound interest	Yes	Yes
No fees	Yes	Yes
Cashable at any time	Yes	No
Cashable once a year (on anniversary of the issue date and 30 days thereafter)		Yes
Convenient — on sale for two months (early October to 1 December)	Yes	Yes
Affordable — can be purchased for as little as $100	Yes	Yes

See Terms and Conditions and Declarations of Trust for more information on CSBs and CPBs.