- Financial Institutions and Investment Dealers
1939-45 – Victory Bonds
Bonds first made their appearance in Canada during the First and Second World Wars as War Savings Certificates and Victory Bonds. They were used to fund the war efforts.
1946 – Launch of the CSBs and the original Payroll Program.
CSBs are introduced as part of Canada’s Postwar Financing Program.
• Certificated CSBs were purchased through payroll deductions
• Customers received bonds upon full payment
• Up to 16,000 employers participated in this plan
1953 – Fully registered bonds
Acting as an agent of the Government of Canada, the Bank of Canada paid the annual interest directly to the bond holder.
1956 – Escalating coupon bonds were introduced.
1977 – Regular-Interest “R” Bonds and Compound-Interest “C” Bonds replaced old style coupon bonds. Direct deposit of interest payments was also made possible with the introduction of the new bonds.
1996 – New Payroll Savings Program
1997 – Introduction of The Canada RSP and The Canada RIF
CSBs were allowed to be purchased directly as an RSP without a Self-Directed Plan, and without fees. Existing bonds could also be transferred into The Canada RSP/RIF without fees or new cash investment.
1998 – Introduction of the Canada Premium Bond (CPB)
The CPB was introduced with the same general features as the Canada Savings Bond (CSB), but with a higher rate of interest at the time of issue than a CSB on sale at the same time, and is cashable once a year.
2010 – Program Changes
Campaign sales period is changed from 6 to 2 months.
Canadians can no longer open new Canada RSP or Canada RIF accounts.
Bonds will mature at the end of their individual term.
2012 – Product Changes
CSBs offered exclusively through the Payroll Savings Program.
Only CPBs are available through financial institutions, dealers and by phone.
CPBs become cashable anytime with interest paid up until the last anniversary date of issue.
Term to maturity for all bonds shortened to three years from 10 years.