What You Need to Know
- In the 2017 Federal Budget, the Government of Canada has announced its decision to end the sale of Canada Savings Bonds (CSB) as of 1 November.
- If you currently contribute to a CSB through the Payroll Savings Program, your contributions will continue to be deducted from your pay until 31 October.
- If you own a certificated CSB that has matured, it no longer earns interest and should be redeemed at a financial institution.
- The Canada Savings Bond is a safe and secure savings product, fully guaranteed by the Government of Canada.
- CSBs have a three-year term to maturity, with interest rates announced for one year and remaining in effect for that period. At the end of one year, new rates are announced by the Minister of Finance based on the prevailing market conditions. See Terms and Conditions.
Redeem CSBs – Payroll Savings Plans
How to Redeem
Payroll Savings Plan owners can redeem their CSBs at any time on CSB Online Services. The last contribution amounts are held for 15 days from the date the deduction is received from the employer. Upon maturity, if the bonds are not redeemed, they will automatically be paid out to the registered bond owner by cheque or direct deposit according to the account information. Read more about how to redeem your bonds.
Access to Funds
- Up to 4 business days if you are set up for Direct Deposit.
- 7 to 10 business days if a cheque is mailed.
Joint Plans / Third-Party Plans
- If funds are held in a Joint Plan, a cheque will be issued in both Plan owners’ names, in which case both signatures will be required to cash in the cheque. Funds can also be deposited directly in a bank account that is held in both owners names.
- If funds are held in a Third-Party Plan, only the registered owner, not the contributor, has access to the funds.
Redeem Certificated CSBs
How to Redeem
All certificated CSBs can be cashed at any time at most financial institutions in Canada. You will receive the full face value plus all applicable interest earned. Bonds purchased through financial institutions, dealers or by phone will earn interest up until the maturity date. After that date, bonds should be redeemed as no additional interest will be paid out.
- If you purchased a bond in your name together with the name of another individual, whether adult or minor, signatures of both owners are required at the time of redemption. A bond registered in the name of a minor (under 18 years of age) may be redeemed against the signature of a parent, guardian, or tutor who has legal custody of the bond owner.
- If you purchased a bond in the name of an individual, whether adult or minor, only the registered owner, not the purchaser, has access to the funds.
See interest rates for unmatured and matured CSBs.
Declaring Interest Earned
All regular interest bond owners and, since 1990, owners of compound interest bonds (Series 45 and up) must declare the annual interest earned for amounts equal to $50 or more. Please note that the Canada Revenue Agency does not require the issuance of T5s for amounts less than $50.
CSBs purchased through the Payroll Savings Program
All CSBs purchased through the Payroll Savings Program are compound interest bonds. The Plan balance continues to earn interest until all funds have been redeemed or paid out upon maturity.
Certificated CSBs - Regular Interest Bonds
Regular interest bonds accrue simple interest at the rates determined by the Minister of Finance until the earlier of maturity or redemption by the registered owner. Earned interest will be paid to the registered owner on each annual anniversary date until maturity. Regular interest CSBs redeemed prior to maturity will only receive simple interest paid up to the last annual anniversary date of the bond.
As interest payments are prepared and issued during the 11th and 12th months following the issue date and annual anniversary dates, if regular interest bonds are redeemed during these months, an amount equal to the interest earned since the last anniversary date will be deducted from the proceeds of redemption as that amount will be included in the registered owner’s annual interest payment.
Certificated CSBs - Compound Interest Bonds
Compound interest bonds accrue, in addition to simple interest, compound interest at the rates determined by the Minister of Finance until the earlier of maturity or redemption by the registered owner. Accrued interest will be credited on each annual anniversary date for a particular series until maturity.
Services for CSB Owners
Find out about address and legal name changes, bond exchange and other services for CSB owners.
CSB Terms and Conditions
Canada Savings Bonds are subject to the Terms and Conditions approved by the Minister of Finance.