Canada Savings Bonds Program Update
Two updates to the Canada Savings Bonds Program will take effect October 2010. These changes will help streamline the Program and ensure its long-term sustainability. The upcoming 2009/2010 sales campaign will not be affected by these changes.
First, the sales period will be streamlined from six months to two months in order to concentrate on the sales period from early October to December when most sales are conducted.
Second, new customers will no longer be able to open a Government sponsored Canada RSP (Retirement Savings Plan) or Canada RIF (Retirement Income Fund). Existing Canada RSP/RIF bondholders will not be affected by this change and all Canadians will still be able to hold Canada Savings Bonds (CSBs) and Canada Premium Bonds (CPBs) in their self-directed RSPs/RIFs.
For more than 65 years, the Canada Savings Bonds Program has provided Canadians with a simple, safe way to save that is backed by the Government of Canada. These changes are a proactive step to ensure Canadians have access to the program for many years to come.
For more information:
General questions: 1-800-575-5151
For media inquiries only: 613-782-8782
QUESTIONS & ANSWERS
- Can you tell me more about each of the changes?
- Streamlining the sales period to two months - early October to December
Since their inception in 1946, Canada Savings Bonds were typically on sale in the month of October. This long tradition ingrained Canada Savings Bonds as part of the fall landscape in the minds of Canadians. In 1998 the sales period was extended as a pilot project 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. A return to the core selling period in the fall will help deliver a more streamlined Canada Savings Bonds Program while still meeting the needs expressed by Canadians. Payroll Savings Program sales will not be affected, as their sign-up period remains in October.
Not allowing new customers to open Government sponsored Canada RSP/RIF accounts as of October 2010
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. Not allowing new customers to open new Canada RSP/RIF plans intends to contain program costs.
Canadians currently participating in the program will experience no other changes and existing Canada RSP participants will still be able to roll their savings into the Canada RIF. Canadians will also still be able to hold Canada Savings Bonds and Canada Premium Bonds in their self-directed RSPs/RIFs.
This change will help ensure the long term sustainability of the Program while still meeting the needs expressed by Canadians.
- How will the Canada Savings Bonds Program better meet the needs of Canadians as a result of these changes?
- These changes are intended to provide Canadians with a more sustainable Canada Savings Bonds Program that continues to offer a safe and secure way to save that is backed by the Government of Canada. Implementing these changes will help reduce program costs while ensuring that the Canada Savings Bonds Program continues to meet the needs and demands of Canadians.