Certificated Bonds

The Canada Savings Bond (CSB) and The Canada Premium Bond (CPB)

What is the Canada Savings Bond?

Canada Savings Bonds were created in 1946 by the Government of Canada to help Canadians reach their savings and investment goals. Canada Savings Bonds now include two types of products: the Canada Savings Bond (CSB) and the Canada Premium Bond (CPB).

The Canada Savings Bond, with guaranteed returns and the option of redeeming at any time, gives you both maximum flexibility and security. The CSB is fully backed by the Government of Canada.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. Interest rates on the Canada Savings Bond, however, can be increased at any time should market conditions warrant.

What is the Canada Premium Bond?

The Canada Premium Bond (CPB) was introduced in 1998 by the Government of Canada to help Canadians reach their savings and investment goals. The CPB is fully backed by the Government of Canada, and offers a higher rate of interest at the time of issue than a Canada Savings Bond on sale at the same time. The Canada Premium Bond can be redeemed once a year on the anniversary of the issue date and during the 30 days thereafter. It’s the smart choice for today’s investor.

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 that period, new rates will be announced by the Minister of Finance based on the prevailing market conditions. Once an issue date has passed, the announced interest rates for the applicable period will not be changed.

Where can I buy a Canada Savings Bond (CSB) or a Canada Premium Bond (CPB)?

From early October to 1 December, there are three convenient and flexible ways to purchase a CSB or CPB:

• you can buy CSBs online at CSB Online Services;
• you can buy by calling Customer Service;
• you can also purchase directly at most banks, credit unions, caisses populaires or trust companies across Canada. You can also purchase a non-certificated CSB or CPB through most full-service investment dealers and discount brokerage companies.

When can I buy a certificated Canada Savings Bond (CSB) or a Canada Premium Bond (CPB)?

Each year, CSBs and CPBs are available from early October to 1 December.

Where can I find current rates?

The rates for the CSB and the CPB are displayed on this website. They also are available wherever you bank or invest.

How much can I buy?

You can buy a CSB or CPB for as little as $100 – or for as little as $2 per week on the Payroll Savings Program. The maximum amount you can generally own per series is $500,000 per type of registration (for exceptions, please refer to the terms and conditions).

What types of interest options are available for the CSB or the CPB?

You have two options:
You can buy Regular-Interest Bonds that pay interest annually until maturity on the anniversary of the issue date or at redemption. Your interest can be deposited directly into your bank account or paid to you by cheque. Regular-Interest Bonds are available in denominations of $300, $500, $1,000, $5,000, and $10,000.

OR

You can buy Compound-Interest Bonds, where the interest is automatically reinvested annually so that your savings grow quicker until your bonds are redeemed or mature. These are available in denominations of $100, $300, $500, $1,000, $5,000, and $10,000.

Only Compound-Interest bonds are available through the Payroll Savings Program or for The Canada RSP and The Canada RIF. Bonds purchased within The Canada RSP or The Canada RIF, as well as those purchased through the Payroll Savings Program, do not have certificates and therefore do not have denominations. Instead, statements of account outlining the details of your investments will be issued (annually as of 31 December for the CSB Payroll Savings Program, semi-annually as of 30 June and 31 December for The Canada RSP, and quarterly for The Canada RIF).

Who is eligible to own a CSB or a CPB?

Only a Canadian resident may own bonds.

When can I redeem my CSB or a CPB?

The CSB can be redeemed at any time. If you redeem your CSB prior to three months following the issue date, you will receive the full face value of the bond only.

If you redeem your bond after that date, you will receive the full face value plus all the interest earned for each full month that has elapsed since the issue date (or the last anniversary of the issue date for Regular-Interest Bonds) until either the maturity date or the redemption date, whichever comes first. (A CSB purchased under the Payroll Savings Program accrues interest on a daily basis based on the outstanding closing balance.)

The Canada Premium Bond is redeemable each year on the anniversary of the issue date and during the 30 days thereafter. If a CPB is redeemed during the 30 days in question, no interest will be earned for the period following the anniversary date. If the CPB is held within The Canada RIF, it is redeemable at any time without penalty if required to facilitate periodic payments.

How and when will I receive my bonds that I purchase online?

Once we receive payment for your bonds, we will process your order and mail the certificates to the address that you provided. You should expect to receive your certificates six to eight weeks after the issue date of the bonds.

Bonds purchased within The Canada RSP do not have certificates. Instead, statements of account outlining the details of your investments in this plan will be issued semi-annually as of 30 June and 31 December. You will also receive a tax receipt (for your annual contributions to The Canada RSP) in February or March, which you can use to claim a tax deduction when you file your tax return.

How can parents cash their children’s bonds?

A bond registered in the name of a minor, who is unable to sign his/her name, may be redeemed against the signature of a parent, guardian, or tutor who has legal custody of the bond owner. The birth certificate of the bond owner will be needed as evidence of age.

In the case of a person born and baptized in the province of Quebec, a certificate of baptism may be accepted as evidence of age. If an official guardian or tutor is signing, a certified copy of the guardianship or tutorship papers is required.

How do I replace bonds that have been lost, stolen or destroyed?

If your certificated bonds have been damaged or lost, please call Customer Service. In the case of stolen bonds, you should also notify your local police department as you will require their report number.

When notifying the Bank of Canada, try to provide as much information as possible, including the complete bond serial number and the exact name (registration) on the bond. When you purchase bonds, we suggest that you keep a separate record with all your bonds’ serial numbers, as this information will be useful to you when reporting loss, theft, or damage.

To avoid unnecessary delay, it is important to report the loss of your bonds to us immediately. Once we are notified, there is a prescribed waiting period of 120 calendar days before we can begin the process of having your bonds replaced. The waiting period is applicable for both unmatured and matured bonds.

If you have not found your lost bonds during the waiting period, you will need to contact us again to obtain the necessary Bond of Indemnity documentation to fill out. Upon receiving and approving the properly completed documentation, we will replace your unmatured bonds or issue a cheque for the value of your matured bonds.

What are the purchase and issue dates for the CSB and CPB for the 2011 sales campaign?

Issue Date	Sales Period	Series	Series
1 November 2011	3 October to 1 November	CSB S128	CPB 78
1 December 2011	2 November to 1 December	CSB S129	CPB 79

What browser version is required to order bonds online?

You will need an Internet browser such as Microsoft Internet Explorer 6.0 – 8.0 and Firefox 3.6.10 – 4.0 that supports 128-bit encryption. Other browsers may also be supported but have not been tested with the site.

How do I pay for the bonds I order online?

When you order bonds online, you have two payment options:

1. By electronic bill payment through the financial institution you bank with, provided that institution offers this service.
2. By cheque.

Your payment must be for the total amount of your purchase. Please note that payments by installments will not be accepted. A confirmation number will be displayed for each purchase upon completion of the bond order. For electronic bill payment, select “Canada Savings Bonds” from the list of billers your banking institution provides for their telephone or online banking service. When you confirm your bond order, you will receive a bill payment number. You must make your payment no later than the issue date of the bonds (i.e., the first of the month) or your order will be cancelled.

For payment by cheque, please write the confirmation number(s) on your cheque. You may postdate your cheque to the issue date of the bonds (i.e., the first of the month). We must receive payment within ten days of the issue date or your purchase will be cancelled. If you are purchasing bonds, both within and outside The Canada RSP, separate payments must be made for each, with the corresponding confirmation number always included.

How do I use online banking to pay my bills?

You first need to sign up for your financial institution’s online or phone banking services. After that you can set up a list of billers to whom you would like to authorize online or telephone payments. In this case, you would select “Canada Savings Bonds” from the list of payees or billers.

How do I get a receipt for my payment when using online banking?

We suggest that you record the reference number and date of your payment, as it will be useful if you have any questions about the bill payment at a later date. Most services allow you to print a confirmation of payment.

How do I pay using the telephone bill payment option?

You first need to sign up for your financial institution’s telephone banking services. After that you need to set up the billers to whom you would like to authorize payments. In this case, you would select “Canada Savings Bonds” from the list of payees or billers.

The financial institution you bank with can walk you through the rest.

How secure is ordering bonds online?

We have gone to great lengths to ensure that your personal and financial information is kept private and confidential. Our secure server uses several layers of robust, state-of-the-art security methods, including encryption, firewalls and timed log outs. And as an extra measure of security during your online activities, confirmation numbers are issued with every transaction.

Encryption is recognized as the most effective way to achieve data security, so we use it to protect critical personal information like your Client ID and password. Consequently, your Internet browser must be compatible with 128-bit encryption in order to order bonds online.

Encryption is the process of scrambling data into an unreadable format that is more secure for transmission over the Internet. Very similar to secret code, encryption takes your data and uses complex mathematical equations called algorithms to scramble the information into an unreadable format called ciphertext. The ciphertext is impossible to read without having a key to unscramble the information to its original form.

What can I do to ensure my online security?

First, protect your password: your password, along with your Client ID, is key to accessing your confidential information. Make sure that you protect your password by memorizing it and not revealing it to anyone. Always choose unique passwords that include both letters and numbers, and don’t alternate between passwords. Do not choose passwords that are easy for others to figure out, like names, birthdays, or telephone numbers.

Secondly, clear your browser’s cache: most browsers save images or files that you have viewed and store them locally to improve performance. It is important to clear your browser’s cache after online sessions to prevent others from being able to view your personal information. Some browsers have an option to not cache encrypted sessions.

Lastly, remember to properly log out after your online session. When you go to CSB Online Services, there is a clearly-indicated log-out option on the menu bar found on the top of the screen. If you forget, we will automatically log you out after a 20-minute period has elapsed with no activity.

When ordering bonds online, when do I have to pay?

For electronic bill payment, you must make the payment no later than the issue date of the bonds (i.e., the first of the month) or your order will be cancelled.

For payment by cheque, you may postdate your cheque to the issue date of the bonds (i.e., the first of the month). We must receive payment within 10 days of the issue date or your purchase will be cancelled.

In both cases, your payment must be for the total amount of your purchase. Please note that payment by installment will not be accepted.

What if I experience problems completing an order online?

If you have any difficulties placing an online order or have any questions, you can reach a Customer Service representative at 1 866 565-8405.

Which financial institutions currently offer the electronic bill payment option for Canada Savings Bonds ordered online?

Royal Bank of Canada, TD Canada Trust, Bank of Montreal, Scotiabank, CIBC, President’s Choice Financial, Laurentian Bank, HSBC, Banque Nationale du Canada, Central 1 Credit Union and Alberta Treasury Branches currently offer online and telephone bill payment services.

Can I choose whether a bond purchased as a gift is sent to me or to the gift recipient?

This depends on which method you use to purchase the bond:

1. If you Buy CSBs Online, it will be mailed to your address.
2. If you purchase the bond where you bank or invest, it can be given directly to you.
3. If you contact Customer Service to order the bond by phone, you can choose to have it mailed to yourself or to the gift recipient (the registered owner).

Can I purchase a bond for a child and, if so, do I need his/her SIN number?

A child can be the registered owner of Canada Savings Bonds. Simply provide the name and address of the child when you place your order. If the child does not have a SIN number, your purchase can still be processed.

I want to know if my gift will arrive on time for a birthday or other event. How long after I make the purchase will the bond be received?

The delivery time is measured from the issue date of the bond to the day you receive the bond. You should receive your bond within six to eight weeks following the issue date.

Can I arrange for you to mail my gift card to the recipient at the same time as the bond?

When you purchase a bond as a gift, you can take advantage of a complimentary gift card but we cannot mail the bond and card together. To give the bond and card together, you will need to have them both sent to you, and then you can present them in whatever ways best suits you.

Tax-Free Savings Account (TFSA) and Canada Savings Bonds

Can I purchase Canada Savings Bonds in a TFSA?

You can purchase a Canada Savings Bond in a TFSA through an investment dealer. Please speak to your financial adviser for further information.

Can I place my certificated Canada Savings Bond in a TFSA?

You can speak to your financial advisor on how to include your Canada Savings Bond in a TFSA. Some exceptions may apply.

I currently purchase Canada Savings Bonds on the Payroll Savings plan through my employer. Can I transfer my Canada Savings Bond to a TFSA?

You can speak to your financial advisor on how to include Canada Savings Bonds in a TFSA. However, you will need to redeem your Canada Savings Bonds from your Payroll Savings Plan since they cannot be transferred directly into a TFSA.

I currently own Canada Savings Bonds in a Canada RSP or Canada RIF. Can I transfer these bonds to a TFSA?

The TFSA is not designed to hold registered products. For further information, you can speak to your financial advisor.

Where can I find more information on TFSA?

For more information on TFSA, please visit the Canada Revenue Agency website, or the TFSA website.