Canada Savings Bonds

Canada Savings Bonds Program: Questions and Answers

Questions specific to Payroll Savings Program: Employees

What do the recent program changes mean to me?

Canada Savings Bonds are no longer be available for purchase through the CSB Payroll Savings Program as of November 1, 2017. However, the funds (principal and interest) in your Payroll Savings Plan are safe, guaranteed and will be honoured. Bond series in your plan will continue to earn interest until redemption or maturity, whichever comes first.

Should I redeem the funds in my CSB Payroll Savings Plan now?

You can redeem your funds at any time. Bond series in your plan will continue to earn interest until the time of redemption or maturity, which comes first. As each bond series in your plan matures, the funds (principal and interest) for the matured series will automatically be paid out to the registered plan owner by cheque or direct deposit, according to your account information. A letter will be sent to notify you of the maturing bond series prior to the payment. Please validate your mailing address and/or banking information to ensure you receive your maturity payments.

Will I continue to receive my annual statement?

Yes. You will continue to receive your annual statement in January until all funds for matured series are paid out, or have been redeemed.

Do I still have access to CSB Online Services?

Yes. You can access CSB Online Services to update your mailing address/banking information, sign up for direct deposit, view your plan balance, and redeem your funds at any time.

If I redeem all my funds now, will my account be automatically closed?

Once all the funds in your plan have been redeemed or paid out at maturity (e.g., plan balance $0), your account will be closed.

Are there any impacts to employees who contributed to a Canada RSP?

Yes. You can find out what this means for registered plan holders by referring to the Q&As.

Where should I invest my money now that the CSBs are no longer being sold?

We recommend you speak to a financial advisor or someone who can advise you on alternate investment options and how best to manage your personal finances.

Questions specific to The Canada RSP Plan Holders

What impact do the recent program changes have on me?

Effective November 2017, the option to contribute additional funds into your existing Canada RSP Plan (including any lump sum contributions or transfers-in) is no longer available. However, the bonds in your Plan are safe and guaranteed, and will continue to earn interest, but only until either November 1 or December 1, 2021, depending on the maturity date of the bond series you own.

What happens to my Canada RSP Plan after the November or December 2021 maturity date?

Your Canada RSP Plan will remain accessible to you, but after the 2021 maturity date, your Canada RSP Plan will no longer be earning interest. We recommend you speak to a financial advisor or someone who can guide you on alternate investment options and how best to manage your personal finances.

Where can I find information about the changes to my Canada RSP Plan?

You can refer to the Terms and Conditions and Declaration of Trust which include the changes to your Canada RSP Plan, effective November 1, 2017.

Will unmatured bonds in my Canada RSP Plan continue to be priced until maturity?

Yes. Unmatured CPBs and CSBs in your Canada RSP Plan will continue to be repriced and earn interest, but only until either November 1 or December 1, 2021, depending on the maturity date of the bond series you own. Rate information is available at csb.gc.ca/rates.

Can I transfer the funds in my Canada RSP Plan to another registered investment plan?

Yes. As always, you can transfer the funds from your Canada RSP Plan to another similar registered plan at any time. To initiate the transfer, the proper documentation (CRA Record of Direct Transfer Form T2033 or equivalent) will need to be completed by a financial institution or RSP administrator.

Can I withdraw the funds from my Canada RSP Plan?

Yes. As always, you can withdraw the funds from your Canada RSP Plan at any time, subject to applicable withholding taxes.

Can I transfer securities from other financial institutions to The Canada RSP?

No. As of November 1, 2017, no new funds can be transferred into your Canada RSP Plan, including any lump sum contributions or transfers-in.

Can I exchange investments within The Canada RSP?

No. As of November 1, 2017, bonds within your Canada RSP Plan can no longer be exchanged.

Will I continue to receive my Canada RSP statements by mail?

Yes. Your Canada RSP statements will continue to be mailed to you at the address we have on file on a semi-annual basis, as of June 30 and December 31, until all bonds have matured (either November or December 2021, depending on the maturity date of the bond series you own). Please ensure that the mailing address we have on file is up-to-date.

What happens to my Canada RSP Plan when I reach 71?

A plan maturity notice will be sent to you by the Trustee prior to December 31 of the year in which you turn 71 asking you to provide written instructions about what you would like to do with your Canada RSP Plan. If you do not provide written instructions and you have a minimum balance of $500 in The Canada RSP, the investments will automatically be transferred to The Canada RIF to avoid having you pay tax on the total proceeds. If the value of your Canada RSP Plan is less than $500, any applicable taxes will be deducted and the balance of your Plan will be paid out.

Can I transfer my Canada RSP Plan to the Canada RIF before I turn 71?

Yes. However, it is important to note that because of the Government of Canada’s decision to phase out the Canada Savings Bonds Program, should you transfer your Canada RSP to The Canada RIF, the bonds in your new Canada RIF Plan will earn interest, but only until either November or December 2021. After this date, The Canada RIF Plan will remain accessible to you and you will continue to receive your annual minimum payments until all funds have been paid out, but your bonds will no longer be earning interest.

To transfer your Canada RSP Plan to the Canada RIF Plan prior to turning 71, contact Customer Service.

I used to contribute to my Canada RSP Plan through the Payroll Savings Program. What do I do now?

CSB contributions towards your Canada RSP Plan through the Payroll Savings Program has ended as of November 1, 2017. You may, at any time, transfer the funds from your Canada RSP Plan to another similar registered investment vehicle, or withdraw your funds, subject to applicable withholding taxes, by contacting Customer Service.

Should I wait until all the bonds in my Canada RSP Plan matures in 2021 before initiating a transfer or withdrawing my funds?

The decision on the timing of when you choose to transfer or withdraw the bonds from your Canada RSP Plan is entirely up to you. Bonds can be transferred at any time, however, once the bonds in your Plan have matured on either November 1 or December 1, 2021, depending on the maturity date of the bond series you own, your Plan will no longer be earning interest. We recommend you speak to a financial advisor or someone who can guide you on alternate investment options and how best to manage your personal finances.

Questions specific to The Canada RIF Plan Holders

What impact do the recent program changes have on me?

Effective November 2017, the option to contribute additional funds into your existing Canada RIF Plan (including any lump sum contributions or transfers-in) is no longer available. The funds in your Canada RIF Plan are safe and guaranteed, and will continue to earn interest, but only until either November 1 or December 1, 2021, depending on the maturity date of the bond series you own.

What happens to my Canada RIF Plan after the November or December 2021 maturity date?

Your Canada RIF Plan will remain accessible to you, and you will continue to receive your annual minimum payments until we have paid out all the funds in your Plan, however after the 2021 maturity date, your Plan will no longer be earning interest. We recommend you speak to a financial advisor or someone who can guide you on alternate investment options and how best to manage your personal finances.

Will I continue to receive my annual minimum payments?

Yes. You will continue to receive your annual minimum payments until all the funds in your Plan have been paid out, however after the 2021 maturity date, your Plan will no longer be earning interest. Payments are made by electronic transfer to your bank account, or by cheque mailed to the address we have on record. Please ensure that the mailing address we have on file is up-to-date or sign up for direct deposit to ensure you receive your payments.

Where can I find information about the changes to my Canada RIF Plan?

You can refer to the Terms and Conditions and Declaration of Trust which includes the changes to your Canada RIF Plan, effective November 1, 2017.

Will unmatured bonds in my Canada RIF Plan continue to be priced until maturity?

Yes. Unmatured CPBs and CSBs in your Canada RIF Plan will continue to be repriced and earn interest, but only until either November or December 2021, depending on the maturity date of the bond series you own. Rate information is available at csb.gc.ca/rates.

Can I transfer the funds in my Canada RIF Plan to another registered income plan?

Yes. As always, you can transfer the funds from your Canada RIF Plan to another similar registered plan at any time. To initiate the transfer, the proper documentation (CRA Record of Direct Transfer Form T2033 or equivalent) will need to be completed by a financial institution or RSP administrator.

Can I withdraw the funds from my Canada RIF Plan?

Yes. As always, you can withdraw the funds from your Canada RIF Plan at any time, subject to applicable withholding taxes, by calling Customer Service.

Can I transfer securities from other financial institutions to The Canada RIF?

No. As of November 1, 2017, no new funds can be transferred into your Canada RIF Plan.

Can I exchange investments within The Canada RIF?

No. As of November 1, 2017, bonds within your Canada RIF Plan can no longer be exchanged.

Will I continue to receive my Canada RIF statements by mail?

Yes. Quarterly statements will be mailed to you at the address we have on file as of March 31, June 30, September 30 and December 31. The December 31 statement will outline the payment details for the following year. Please ensure the mailing address we have on file is up-to-date.

Should I wait until all the funds in my Canada RIF Plan mature in 2021 before initiating a transfer or withdrawing them?

The decision on the timing of when you choose to transfer or withdraw the funds from your Canada RIF Plan is entirely up to you. However, once the bonds in your Plan have matured on either November or December 2021, depending on the maturity date of the bond series you own, the funds in your Plan will no longer be earning interest. We recommend you speak to a financial advisor or someone who can guide you on alternate investment options and how best to manage your personal finances.

Questions specific to Certificated Bond Owners

What do the recent program changes mean to me?

Canada Premium Bonds are no longer available for purchase as of November 1, 2017. The bonds (including principal and interest) you hold are safe, guaranteed, and will be honoured. Unmatured bonds will continue to earn interest until the time of redemption or maturity, whichever comes first. Bonds that have matured no longer earn interest and can be redeemed at any financial institution across Canada.

Should I redeem my bonds now?

You can redeem your bonds at any time. If you have an unmatured bond, it will continue to earn interest up until the redemption or maturity date, whichever comes first. You can find all relevant information at Redeem CPBs.

I own a regular interest CSB/CPB and normally receive an interest payment at the anniversary of the issue date. Will I still receive interest payments?

Yes. You will continue to receive interest payments by cheque or direct deposit on the anniversary of the issue date until the bond matures or is redeemed, whichever comes first. Please ensure your mailing address and/or banking information is up-to-date. To update the information, complete and return the Change of Address and Direct Deposit Form.

Can I still enroll in Direct Deposit to receive my interest payments?

Yes. You can enroll in Direct Deposit to receive interest payments for your regular interest CSBs or CPBs by completing and returning the Change of Address and Direct Deposit Form. If you do not have a Direct Deposit account set up, we will issue payments by cheque to the address we have on file. If your mailing address has changed, complete and return the same form.

Following the announcement, can I still report a lost/stolen/destroyed bond? Can the bond be reissued?

Yes. You can report a lost, stolen or destroyed bond. An unmatured bond that was lost, stolen or destroyed can be reissued. If the bond has matured, we will issue a payment instead of replacing the bond. You can find all relevant information at Lost, Stolen or Destroyed Certificated Bonds.

Where should I invest my money now that CPBs are no longer being sold?

We recommend you speak to a financial advisor or someone who can guide you on alternate investment options and how best to manage your personal finances.

Questions specific to Financial Institutions and Investment Dealers

What do the recent program changes mean to me and my customers?

CPBs will no longer be issued as of November 1, 2017. There are no changes to the procedures you currently follow with regards to bond processing. However, you may experience an increase in redemption requests following this announcement. We encourage you to speak proactively with customers to ensure that matured bonds are redeemed in a timely manner.

Will unmatured bonds continue to be priced until maturity?

Yes. Unmatured CPBs and CSBs will continue to be priced until maturity as per the usual procedure. Rate information is available at csb.gc.ca/rates.

Will we continue to receive commission payments on the applicable unmatured series?

Yes. Commission payments on eligible older CPB and CSB series will continue to be paid to financial institutions and investment dealers.

What impact does this announcement have on bond owners?

The only impact of the announcement to bond owners is that CPBs are no longer available for purchase. CPBs and/or CSBs that customers currently hold are safe, guaranteed, and will be honoured. The bonds will continue to earn interest until redemption or maturity, whichever comes first.

Are there any impacts to customers who hold a Canada RSP or a Canada RIF?

Yes. Registered plan holders can find out what this means by referring to the Q&As for Canada RSP and Q&A for Canada RIF holders. Further to the announcement, you may experience a higher volume of transfers out of The Canada RSP and The Canada RIF.