What You Need to Know
- In the 2017 Federal Budget, the Government of Canada has announced its decision to end the sale of Canada Premium Bonds (CPBs) as of November 1. Refer to the Questions and Answers to find out what this means to you.
- If you own a certificated CPB that has matured, it no longer earns interest and should be redeemed at a financial institution.
- The Canada Premium Bond (CPB) is a safe and secure savings product, fully guaranteed by the Government of Canada.
- Interest rates of all unmatured bonds can be found on csb.gc.ca/rates.
How to Redeem
- Certificated CPBs can be cashed at any time at most financial institutions in Canada.
- If CPBs are redeemed prior to maturity, the face value of the bond plus all interest earned up to the last anniversary of the date of issue will be paid out. All interest earned from the last anniversary date up to the date of redemption will be forfeited.
- With co-owned bonds, signatures must be provided by all registered owners at the time of redemption (i.e., when cashing in a bond). This process is in place to protect all parties where there are multiple registered owners.
- 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 (or other proof of age document) of the bond owner will be needed as evidence of age.
Bonds purchased through financial institutions, investment dealers and by phone will earn interest up until the maturity date. After that date, no additional interest will be paid out and should be redeemed.
Regular Interest Bonds
- To receive annual interest payments by Direct Deposit, you must complete the Change of Address and Direct Deposit (COADD) Form. This will replace payment instructions the owner has given the Bank of Canada for previously purchased regular interest bonds.
- Regular interest bonds accrue simple interest at the rates determined by the Minister of Finance until the earlier of maturity or redemption by the registered owner. Simple interest is accumulated monthly and is paid to the registered owner by cheque or through direct deposit on each annual anniversary date until maturity.
- As interest payments are prepared and issued during the 11th and 12th months following the issue date and annual anniversary dates, if regular interest bonds are redeemed during these months, an amount equal to the interest earned since the last anniversary date will be deducted from the proceeds of redemption as that amount will be included in the registered owner’s annual interest payment.
Compound Interest Bonds
- Compound interest bonds accrue, in addition to simple interest, compound interest at the rates determined by the Minister of Finance until the earlier of maturity or redemption by the registered owner. Accrued interest will be credited on each annual anniversary date for a particular series until maturity. At the time of maturity, you may redeem your bond where you bank or invest and you will receive the full face value of the bond plus all interest earned.
See interest rates for unmatured and matured CPBs.
Services for CPB Owners
Find out about address and legal name changes, bond exchange and other services for CPB owners.