General Information
- Why is the campaign being reduced from six months to two months?
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The six-month campaign began as a pilot project in 1998 so that Canadians could buy Canada Savings Bonds from financial institutions and dealers for six months out of the year (early October to April 1st). However, typically about 95% of the sales are still occurring in the period from early October to December. In order to continue providing a more sustainable, streamlined, and efficient program, we are focusing our efforts on our traditional fall campaign period. This will help to control costs while ensuring that the CSB Program continues to offer products and services that meet the needs and demands of Canadians.
- Why are you not allowing new customers to open Government sponsored Canada RSP/Canada RIF accounts as of October 2010?
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Canada Savings Bonds and Canada Premium Bonds held in the Government sponsored Canada RSP/RIF involve relatively high costs for the Canada Savings Bonds Program. Low participation rates suggest there is low demand among Canadians for the Government sponsored Canada RSP/RIF. This change will help ensure the long term sustainability of the Program while still meeting the needs expressed by Canadians. Canadians will still be able to hold Canada Savings Bonds and Canada Premium Bonds in their self-directed RRSPs/RRIFs.
- Will I still be able to contribute to my existing Canada RSP account?
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Yes. Rules around the contributions and transfers to existing plans have not changed. Canadians currently holding a Canada RSP account will still be able to:
- Transfer cash into their existing accounts.
- Transfer CSBs and CPBs from other registered plans into their existing accounts.
- Transfer CSBs and CPBs held outside of a registered plan into their existing accounts.
- What will happen to my RSP account? What will happen to the savings in my RSP account?
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Existing registered CSB or CPB holdings will remain in your Canada RSP account. Rules for redemptions and withdrawals from your Canada RSP account have not changed. Rules regarding investments and bond maturities have also not changed.
- My Canada RSP is set to become a RIF this year. Now what will happen?
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Canada RSP participants will still be able to roll their savings into the Canada RIF. The Canada RSP automatically matures at age 71 and if no new instructions are given by the plan holder, then the plan automatically converts to the Canada RIF if the value exceeds $500. If under $500 then the balance is paid out.
- Can I redeem or transfer my holdings out of my Canada RSP account?
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Yes. Rules for redemptions and transfers to existing accounts have not changed.
- Will I still be able to transfer in holdings to my Canada RIF account?
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Rules regarding the transfer-in and investments have not changed. You will continue to be able to make the following transactions to your existing RIF Account:
- Transfer-in CSBs and CPBs held in a self-directed RRSP/RRIF
- Transfer-in CSBs and CPBs held in the Canada RSP
- Transfer-in cash held in other registered plans (RRSP/RRIF)
- Transfer assets between CSBs and CPBs (series) held within the plan.
- Will I still be able to transfer my holdings out of my Canada RIF account?
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Yes, rules for withdrawals from your RIF including payments, transfer outs, and lump sum payments have not changed.
- The Government of Canada has been extending bonds for many years. Why have they now decided to mature CSBs / CPBs?
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The government decided, on a temporary basis, to automatically extend the terms of maturing CSB and CPB series (for another 10 years) in order to prevent a sharp decline in the amount of retail debt stock (i.e. CSBs and CPBs). Now that this period of large CSB and CPB maturities has passed, the standard policy of allowing CSB and CPB series to mature (as per the terms and conditions of your bond) has been re-adopted.
- How can I obtain a Social Insurance Number (SIN)?
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Individuals who do not have a SIN may obtain one by contacting their local Service Canada office.
- Why and when should I provide my Social Insurance Number?
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Income tax legislation requires that registered owners provide their Social Insurance Number (SIN) for any investments generating interest and that financial institutions make a reasonable effort to obtain it. This requirement stems from the need for the SIN to be recorded on the individual’s tax information slips and forms (T5), and for this information to be sent to the Canada Revenue Agency.
- Can bonds be transferred?
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Transfers are permitted in a limited number of cases. For example, with the death of a bond owner, following a legal name change or after a change of name due to divorce, marriage, or adoption. In these cases, appropriate documentation must be provided.
For more information, please call Customer Service. Transfers to RRSPs and RRIFs are also permitted for existing holders only.
Contact Payroll Customer Service for a CSB purchased through the Payroll Savings Program (please refer to the appropriate terms and conditions).
- Each year, do I have to declare the interest on my Regular-Interest “R” and Compound-Interest “C” Bonds for taxation purposes?
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Yes. All “R” bond owners and, since 1990, owners of “C” Bonds (Series 45 and up) must declare annually the interest earned during the year.
Please note that the Canada Revenue Agency does not require us to issue T5s for amounts less than $50. For information concerning the reporting of Canada Savings Bond Investment Income (Line 121 of your tax return), contact the Canada Revenue Agency.
