Canada Savings Bonds Program Changes Effective October 2012
The Canada Savings Bonds Program Responds to the Savings Needs of Canadians
For more than 65 years, the Canada Savings Bonds Program has provided Canadians with a means to save for their financial goals in a way that is safe, convenient and free of charge. Starting in October 2012, changes will be made to Canada Savings Bonds and Canada Premium Bonds products to ensure the program is sustainable and relevant for Canadians well into the future.
Changes to the Canada Premium Bond
Canada Premium Bonds, which represent the majority of Canada Savings Bonds Program bonds sold through financial institutions and dealers, will be enhanced with a new cashability feature. The term to maturity will also be shortened to three years from 10 years.
Canada Premium Bonds will be cashable anytime
This new feature, effective 1 August 2012, will provide Canadians with improved access to their savings. Canadians who invest in Canada Premium Bonds will have the flexibility to redeem their bonds throughout the year with interest earned up to the last anniversary date of purchase. All outstanding Canada Premium Bonds will also benefit from this feature.
The term to maturity will be shortened to three years
The term to maturity of all new Canada Premium Bonds issued will be shortened to three years from 10 years to align with their three-year step-up coupon pricing and to make them comparable with other retail products.
Where to purchase Canada Premium Bonds
Canada Premium Bonds will continue to be available for purchase in the fall through financial institutions, investment dealers and by telephone.
Changes to the Canada Savings Bond
A focus on the Canada Savings Bonds Payroll Savings Program
Canada Savings Bonds will be offered exclusively through the Payroll Savings Program, which is dedicated to helping Canadians save for their financial goals. Over 11,500 employers across Canada participate in this program, enabling almost 1 million Canadians to save through payroll deductions for as little as $2 per paycheque.
The term to maturity of Canada Savings Bonds will be shortened to three years
The term to maturity of all new Canada Savings Bonds will also be reduced to three years from 10 years to provide Canadians with the opportunity to reassess their savings goals more frequently.
How to participate in the Canada Savings Bonds Payroll Savings Program
The Payroll Savings Program is offered to all Canadian employers free of charge. Employers wishing to participate in the Program can visit the Employers page.
Employees of participating companies can register online in October.
For media inquiries about Canada Savings Bonds, contact Media Relations.